Targeted Genetics Corp. (TGEN), a clinical-stage biotechnology company, Monday said it would continue its product-focused realignment strategy including renegotiation of its relationship with Celladon Corp. and the transfer of its Adeno-Associated Viral - AAV vector manufacturing know-how to contract manufacturing organizations CMOs. Targeted Genetics also said it is reaching the end of its current HIV/AIDS vaccine product candidate work with the Children's Hospital of Philadelphia.
The Seattle, Washington-based company said it has entered into new license and manufacturing agreements with Celladon to transfer its manufacturing technology, and the agreements would replace prior agreements with Celladon. The current move would enable Celladon to manufacture a genetically-targeted enzyme replacement therapy for heart failure, MYDICAR through CMOs or a commercial product development partner.
According to the terms of the new agreements, Targeted Genetics has granted Celladon exclusive right for using certain proprietary AAV vector technology in an expanded field, including heart failure, where changes in calcium cycling have contributed to or caused disease conditions.
Celladon has agreed to increase payments to Targeted Genetics in the first six months of 2009 for the manufacture of MYDICAR for phase III clinical studies, while Targeted Genetics granted Celladon control over CMOs it may use for future manufacturing of therapeutic product candidates in the permitted field in return.
Celladon and Targeted Genetics have additionally agreed to a new milestone and royalty structure on development and commercialization of products in the permitted field. This would enable Targeted Genetics receive significant future revenues if Celladon successfully commercialized a product covered by the license agreement.
Targeted Genetics now projects adequate cash and short term investments to support operations through the first half of 2009 and continues to seek financing for continued operations. Efforts for financing include equity financing, strategic transactions, and the sale of individual technology assets.
The funding would be utilized to support ongoing product development efforts in ocular and neurological indications and/or earlier stage opportunities identified by the company focusing on AAV to deliver RNA therapeutics, which include interfering RNA sequences and microRNAs.
The company said it would phase out its manufacturing operations infrastructure following completion of the current Celladon manufacturing campaign if it failed to raise additional capital. The reduction would include reducing its manufacturing headcount from approximately 35 full-time equivalent staff to five or fewer manufacturing-related staff and also include other infrastructure cost reductions.
Targeted Genetics is also evaluating other alternatives if the company is unable to secure sufficient funding for its continued operations.
Targeted Genetics' product development efforts are focused on a treatment for severe retinal dystrophies, most commonly diagnosed as Leber's Congenital Amaurosis or LCA, and additional programs in Huntington's Disease or HD and Amyotrophic Lateral Sclerosis ALS.
Targeted Genetics said its HIV/AIDS vaccine product candidate work with the Children's Hospital of Philadelphia is reaching completion as that program enters clinical testing. This has suspended most external spending on its company-funded programs. Targeted Genetics now expects to advance its inflammatory arthritis candidate only with funding from a partner or collaborator.
TG closed its regular trading session on Friday at $0.13 on a volume of 54k shares on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.