Tengion Inc.: We're Almost Out of Cash, Could Shut Down as Early as September
Published: Aug 16, 2012
Tengion Inc. has only enough cash available to keep operating through the end of this month, the company said in its second-quarter earnings report.
The Winston-Salem-based biotech company is working to commercialize the groundbreaking regenerative medicine technologies developed in the labs of Dr. Anthony Atala at the Wake Forest Institute for Regenerative Medicine.
The company said it is "actively exploring opportunities to continue its business operations as currently conducted and fund deficits in operating cash flows. If Tengion is unable to raise additional capital, it will need to suspend its business operations and will likely need to seek protection under U.S. bankruptcy laws."
Tengion (NASDAQ: TNGN) had a net loss of $3.3 million in the second quarter and $8.2 million for the first six months of 2012, compared to a net loss of $4.1 million in the first half of 2011. The company said it had reduced compensation-related expenses by $2.5 million compared to the first half of 2011 by cuts to both administrative and research personnel. Tengion cut 30 jobs in November and then consolidated its headquarters in Winston-Salem at the beginning of the year.
CEO John Miclot said Tengion is continuing to move ahead with its scientific development including its Neo-Urinary Conduit program for bladder cancer treatment and Neo-Kidney Augment program to prevent or delay the need for dialysis or kidney transplants. Miclot said both are making the progress that is expected.