Regenerative medicine company Tengion (Nasdaq:TNGN) has raised $15 million from investors through a private placement as the life science firm looks for funding needed to further develop and bring to market at least two products.
The company’s lead program treating patients who have had their bladder removed is expected to finish phase 1 enrollment by year’s end. A preclinical kidney program could start human studies next year.
Tengion raised funds from Celgene Corporation, RA Capital Management, Deerfield Management Company, Bay City Capital and Healthcap.
As part of the deal, Celgene has “right of first negotiation” for Tengion’s bladder product called Neo-Urinary Conduit.
Tengion hopes to file an investigational new drug filing with the FDA for its Neo-Kidney Augment in the first half of 2013.
Investors can also purchase up to an additional $20 million in notes, Tengion said.
Tengion shares closed at $1.05 Tuesday and were down slightly Wednesday morning after the placement was announced. The company recently consolidated operations and moved its headquarters to Winston-Salem.
In June, Tengion executed a reverse stock split.