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EXHIBIT 99.1
Targeted Genetics Completes Acquisition of Genovo and Initiates Collaboration
With Biogen
SEATTLE--(BW HealthWire)--Sept. 20, 2000--Targeted Genetics Corporation
(Nasdaq:TGEN - news) today announced that the company has completed its
acquisition of Genovo, Inc., a privately held gene therapy company. Genovo's
major assets include proprietary AAV-based product development programs in the
areas of hyperlipidemia and atherosclerosis; intellectual property covering
production, composition of matter and use of AAV-based products and patents
related to other viral vector systems; and a product development agreement with
Genzyme Corp. in the area of lysosomal storage disorders. Genovo also has an
existing collaboration with Biogen, Inc., which has been expanded. The terms of
the new agreement, announced August 9, 2000, become effective with the
completion of this acquisition.
Under the terms of the acquisition, Targeted Genetics has issued 6.63 million
new shares of its common stock, or approximately 15% of its total post-
transaction shares outstanding, to the former shareholders of Genovo. The
company will shortly file an S-3 registration statement related to these shares.
These shares are subject to lock-up agreements providing for the periodic
release for sale of a portion of such shares during the 30-month period
following the closing. The acquisition, combined with the expanded agreement
with Biogen, is expected to be cash-flow positive to Targeted Genetics.
"We have initiated the process of integrating the Genovo employees,
technologies, product development programs and partnerships into the ongoing
activities at Targeted Genetics," said H. Stewart Parker, president and chief
executive officer at the company. "The combined product pipeline contains a
number of exciting opportunities and we are taking the initial steps toward
converting these opportunities into additional value for our shareholders and
into new therapies for patients with a variety of diseases. We are especially
excited about moving forward with our new partners, Biogen and Genzyme."
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.
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 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
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Report on Form 10-Q filed with the SEC. 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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