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EXHIBIT 99.1
[LOGO OF TARGETED GENETICS]
Contact:
Targeted Genetics Corporation Noonan/Russo Communications
Stephanie Seiler, Ph.D. Page Sargisson (media)
Director, Communications (415) 677-4455, ext. 229
(206) 521-7823 Mary Claire Bice (investors)
(212) 696-4455, ext. 238
TARGETED GENETICS AND BIOGEN ANNOUNCE PRODUCT
DEVELOPMENT AND COMMERCIALIZATION COLLABORATION VALUED
AT UP TO $125 MILLION
Seattle, WA--August 9, 2000--Targeted Genetics Corporation (Nasdaq: TGEN) today
announced that the Company has entered into a definitive agreement to establish
a major multi-product development and commercialization collaboration with
Biogen, Inc. The collaboration replaces and expands an agreement that Biogen
established in 1995 with Genovo, a privately-held gene therapy company to be
acquired by Targeted Genetics (see accompanying press release), and in which
Biogen is a significant shareholder.
Under the terms of the agreement, Targeted Genetics will work on the development
of up to four new gene therapy products for Biogen. The specific genes to be
delivered are to be determined by both Biogen and Targeted Genetics over the
next three years. Targeted Genetics also has agreed to provide process
development assistance related to Biogen's manufacturing of an existing gene
therapy product candidate currently in clinical development for the treatment of
glioma, resulting in a total of up to five products covered by the
collaboration. In return for access to Targeted Genetics' technologies and
product development capabilities, Biogen will pay $8 million in up-front
payments; ongoing research and development funding, and significant milestone
payments related to the development of up to five products. Biogen's funding
under the agreement also includes commitments for a $10 million line of credit
to Targeted Genetics and a future $10 million equity investment in Targeted
Genetics, both of which are accessible at Targeted Genetics' discretion. The
total value of the agreement could reach $125 million,
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not including payments for manufacturing and royalties on sales of products
commercialized under the collaboration.
"This agreement is a validation of the power of our technology platforms and our
leadership in process development, product development and manufacturing of gene
therapy products," said H. Stewart Parker, President and Chief Executive Officer
of Targeted Genetics. "A premier biopharmaceutical company such as Biogen could
have worked with any number of gene therapy companies, and we are proud that
Targeted Genetics has been selected as their partner for the development of
novel gene therapy products. The collaboration enhances Targeted Genetics'
near-term financial position, provides significant revenue opportunities in the
future and affords us the opportunity to work with leaders in the
biopharmaceutical industry. This partnership will enable us to expand our
programs to new disease indications and we intend to work closely with Biogen to
bring new therapies to patients suffering from a variety of serious diseases."
In 1995 Biogen entered into a gene therapy product development collaboration
with Genovo. In a separate announcement today, Targeted Genetics announced that
the Company has signed a definitive merger agreement to acquire Genovo. As a
current shareholder in Genovo, Biogen will receive Targeted Genetics stock in
exchange for its shares of Genovo. Upon closing of the acquisition, Biogen will
own approximately 9% of Targeted Genetics' outstanding common stock. The
collaboration between Targeted Genetics and Biogen will become effective upon
the closing of the acquisition, and will replace the 1995 agreement between
Biogen and Genovo.
"We believe that gene therapy holds enormous potential for treating a wide
variety of diseases," said James C. Mullen, President and Chief Executive
Officer of Biogen. "As Biogen expands its product opportunities to include
additional gene therapy products, we believe that a collaboration with Targeted
Genetics will provide us with access to cutting edge technologies and
demonstrated expertise in gene therapy product development. The Company has
established impressive scientific and management teams and built substantial
infrastructure for product development and manufacturing. We look forward to
leveraging the multiple opportunities that this collaboration provides to both
organizations."
Targeted Genetics Corporation develops gene therapy products for the treatment
of acquired and inherited diseases. The Company has lead clinical product
development programs targeting cystic fibrosis and cancer, and a promising
preclinical pipeline of product candidates focused on hemophilia A, arthritis,
cancer and AIDS prophylaxis. The Company has a broad platform of gene delivery
technologies, as well as a promising body of technology for cellular therapy.
For more information about Targeted Genetics Corporation please visit the
Company's web site at http://www.targetedgenetics.com.
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NOTE: This release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected. The words "believes," "expects," "intends,"
"anticipates," and similar
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expressions identify forward-looking statements, but their absence does not mean
that the statement is not forward-looking. These statements are not guarantees
of future performance.. A number of factors could affect the Company's actual
results including the risk factors described in the Company's latest Quarterly
Report on Form 10-Q filed with the SEC on May 15, 2000 for a more detailed
description of such factors. You should not place an undue reliance on these
forward-looking statements, which speak only as of the date of this release. The
Company undertakes no obligation to update publicly any forward-looking
statements to reflect new information, events or circumstances after the date of
this release.
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Editor's Note: This release can also be found at www.noonanrusso.com.
