Tengion closes deals to advance organ regeneration platform

USA-based Tengion (OTCQB: TNGN), a leader in regenerative medicine, says it has now closed transactions totaling $33.6 million to fund its two lead clinical programs, the Neo-Kidney Augment and the Neo-Urinary Conduit.

As part of the $33.6 million in transactions, Tengion announced a strategic investment from biotech major Celgene (Nasdaq: CELG) in the form of a $15 million payment in cash, in return for which Celgene was granted a right of first negotiation on Tengion's Neo-Kidney Augment program. Celgene also entered into a collaboration and obtained an exclusive option to acquire assets, including the rights to utilize the company's technology related to the development of a neo-esophageal implant. Celgene has also received warrants to purchase shares of Tengion's common stock. Celgene invested $5 million in the company's October 2012 financing.

Tengion also announced the closing of an $18.6 million financing in which the company issued Senior Secured Convertible Notes. Investors in the Notes included both existing investors RA Capital Management, Deerfield Management, Bay City Capital, and HealthCap, in addition to new investors that included Perceptive Life Sciences and QVT Financial LP.