Regenerative medicine firm Tengion (OTC:TNGN) has found a way to generate something that has been in short supply for the company: the funding needed to continue R&D work and clinical trials on novel technology for regenerating human tissue.

Tengion announced Monday afternoon that it has closed on two transactions that provide the Winston-Salem company with $33.6 million in new funding for its two lead clinical programs, which regenerate kidney and bladder tissue respectively. The first deal is an arrangement with Celgene Corporation (NASDAQ:CELG), a New Jersey biopharmaceutical company that is already an investor in the company. Celgene will invest $15 million cash in exchange for the right of first negotiation for Tengion’s neo-kidney augment program.

Celgene also entered into a collaboration and obtained an exclusive option to acquire assets, including the rights to use Tengion’s technology in a new application – regenerating tissue of the esophagus. The agreement gives Celgene warrants to purchase shares of Tengion’s common stock. Celgene initially became involved with Tengion last October when it invested $5 million in the company.

Tengion’s second transaction was on $18.6 million in financing in which the company issued senior secured convertible notes to certain investors, including existing investors RA Capital Management, Deerfield Management Company, Bay City Capital and HealthCap. New investors included Perceptive Life Sciences and QVT Financial LP. Roth Capital Partners, LLC acted as sole placement agent to Tengion.

“The completion of these transactions allows us to continue our focus on advancing both the Neo-Kidney Augment and the Neo-Urinary Conduit to key clinical milestones,” John Miclot, Tengion’s president and CEO said in a statement. “We are eager to make progress towards our primary objectives of establishing new standards of care for patients with chronic kidney disease and for bladder cancer patients undergoing cystectomy, or removal of their bladder.”

Net proceeds from the transactions will be used primarily for R&D work on the two lead programs, including the funding of two planned Phase 1 clinical trials for the Company’s Neo-Kidney Augment in Sweden and the United states. Enrollment continues for a phase I clinical trial of Tengion’s Neo-Urinary Conduit program.

Tengion’s regenerative medicine technology is based on research originally developed at Wake Forest University’s Institute for Regenerative Medicine. While the company has made progress developing its technologies, it has also run short on the funds to support the work. In March, Tengion said it only had enough cash to last the company through May.