Targeted Genetics out of crisis after selling AAV kit to Genzyme
The agreement, which also grants Genzyme a license to use certain technology and materials needed to make adeno-associated viral vectors (AAV), will earn TG $3.5 million in the next five days with another $3.5m in instalments.
Also under the transaction TG will be allowed to use the technology in its AAV gene therapy programmes, including for its candidate Huntington’s Disease and Leber's Congenital Amaurosis drugs.
TG has had a tough time of late as Robinson explained. She said: “We have reduced our workforce by 80per cent since November 2008, to approximately 15 core employees.
“We also renegotiated our facility leases and greatly reduced our rent and other liabilities, and at the same time, generated significant new revenue in 2009 through renegotiating our collaboration with Celladon Corporation.”
Robinson said that these efforts had provided the firm with a cash life line that allowed both the Genzyme deal as well as a number of other strategic discussions to take place.
In a TG press release David Meeker, exec VP of Genzyme's therapeutics, biosurgery and transplant businesses, said: "The acquisition of the intellectual property from Targeted Genetics will add depth to our program and overall gene therapy capabilities."
