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IPO News

3/17/10

Tengion, which creates functional neo-organs using a patient's own cells with a urologic treatment in Phase 2, announced terms for its IPO on Wednesday. The East Norriton, PA-based company plans to raise $40 million by offering 4.4 million shares at a price range of $8-$10. At the mid-point of the proposed range, Tengion will command a market value of $97 million. Tengion, which was founded in 2003 and has yet to generate product revenue, plans to list on the NASDAQ under the symbol TNGN. Piper Jaffray and Leerink Swann are the lead underwriters on the deal, which will be the fourth biotech to go public this year, if completed (following Ironwood (IRWD), Anthera Pharmaceuticals (ANTH) and AVEO Pharmaceuticals (AVEO). Its product candidates focus on combining technology with the body's intrinsic capacity to regenerate tissue to address urologic, renal, gastrointestinal and vascular diseases; there are six candidates in the pipeline. Net proceeds from the deal will be used for research and development, repayment of debt and general corporate purposes. Timing for the IPO was not disclosed.