Targeted Genetics Warns Layoff Cliff Ahead
March 2, 2009 at 11:00 am EST | Tags: Deals & Alliances, Economy & Layoffs, ManufacturingYou gotta read between the lines on this one. Look at a few key phrases (towards end of post) and you’ll see that employees at Targeted Genetics (TGEN) are probably dusting off their resumes after the company announced that Celladon has saved them by extending TGEN’s manufacturing contract to June 30, 2009. TGEN has already said they only have cash to last them through the 1st half of 09.
Here’s what CEO Susan Robinson said:
While we have begun internal efforts in connection with our manufacturing campaign with Celladon that is expected to run through the first half of 2009 and continue to seek financing for our therapeutic development and manufacturing operations, we have concluded that accessing a CMO in addition to, or instead of, funding our own internal manufacturing capabilities could provide operational and financial flexibility in addressing future manufacturing needs…Although market conditions are challenging, our efforts continue to be focused on maximizing value for our stakeholders.”
Here’s the writing on the wall:
“continue to seek financing”
“right to terminate the agreement without cause on sixty days notice after June 30, 2009.”
“phase out its manufacturing operations infrastructure”
“reducing its manufacturing headcount from approximately 35 full-time equivalent staff to five or fewer”
We also left out the fact that TGEN’s technology is gene therapy and that the stock is trading at about a dime and a nickel.
Uhh, errr, ohh, and that they’re running out of cash…tough times.
And oh I forgot, it’s gene therapy.
Image from monash.edu
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You are absolutely right in your assessment. In addition, approximately 9 employees were pushed out of the door in early February without any announcement. One has to wonder the legallity of keeping this information in closed door and out from shareholders.
TGEN must be the most undervalued stock in history. It’s trading at less than one percent (1%) of where it was before the 1:10 reverse split. Nearly all of the dive is the arthritis SAE death. Marginally hostile Univ of Chicago confirmed that TGEN was uninvolved (TARGETED Genetics) and you have to sift through (3) Seattle Times articles to find that the patient was on (3) different arthritis drugs that wiped out her immune system. TGEN couldn’t defend because of FDA muzzle. TGEN was cleared in FIVE MONTHS. That was a Phase I/II test that TGEN reported as if it were Phase III and it yielded decent Phase III results including patients who had not responded to drugs. What’s the efficacy of Humira applied once every 90 days and their TV ad boilerplates side effects including death. TGEN’s side effect is occasional site reaction. TGEN has an unassailable patent portfolio including indirect administration that Wired blog actually argued should be turned over to public domain. TGEN has in place commercial manufacturing capacity. They’re so confident about the technology that they ran a test for cystic fibrosis that administered via inhalation. No wonder the drug industry is trying to kill TGEN.
TGEN is currently NOT undervalued!!! The talent is gone. Overhead is high which makes manufacturing very expensive. Liabilities are high including facilities rent and IP costs. Patent portfolio is dismal. Even the bread and butter manufacturing portfolio which was very much guarded is now pretty much auctioned (see latest press release). No cash horizon. Phase I/II Arthritis trial yielded nothing of value and the program has been terminated and up for sale (who is going to buy this stuff). CF trial failed. HIV vaccine trial failed. Employees are being booted out without an announcement to shae holders. In the absence of a mircle, anticipate a yard sale on the intersection of Boren and Stewart.
TGEN is NOT undervalued @ $1.6 MM market cap / zero debt? Arthritis trial yielded “nothing of value” ? Patent portfolio is “dismal”? Maufacturing PORTFOLIO disappeared?
TGEN must be doing something right if Insider is gone.