Tengion Inc., an East Norriton, Penn.-based regenerative medicine company focused on replacement bladders, has raised approximately $21 million in additional Series C funding, bringing the round total to $54 million. Safeguard Scientifics was joined on the round by return backers Bain Capital, Johnson & Johnson Development Corp., Deerfield Partners, Quaker BioVentures, Oak Investment Partners, HealthCap and L Capital Partners. The company had now raised over $140 million in total VC funding.
Safeguard Scientifics, Inc. (NYSE: SFE), a holding company that builds value in growth-stage technology and life sciences companies, today announced that it participated in the second closing of Tengion’s Series C equity financing. The second close totaled approximately $21 million. Based in East Norriton, PA with a pilot manufacturing facility in Winston-Salem, NC, Tengion is a clinical stage regenerative medicine company focused on the development of neo-organs and neo-tissues.
In addition to Safeguard, equity capital for this round came from Tengion’s current institutional investors, including Bain Capital LLC, Johnson & Johnson Development Corporation, Deerfield Partners, Quaker BioVentures, Oak Investment Partners, HealthCap and L Capital Partners. Funding will primarily be used to support phase III clinical trials for the Tengion Neo-Bladder® Augment. This patented technology is the first product to utilize the body’s own regenerative cells, and harness them to develop and complete regeneration of the bladder.
“Tengion reflects one of Safeguard’s strategic objectives, which is to partner with growth-stage life sciences companies developing regenerative and personalized medical technologies that serve significant unmet medical needs,” says Peter J. Boni, President and CEO of Safeguard. “Despite the challenging macroeconomic backdrop, we continue to identify exciting partnering opportunities. Safeguard’s unique business model affords us access to equity to deploy capital in companies that have truly differentiated products, strong management and are on a solid trajectory towards global commercialization.”
Tengion’s technologies aim to cure — rather than treat — organ and tissue failure, enabling people to lead healthier lives without donor transplants or the side effects of related therapies. Tengion’s technologies, such as the Autologous Organ Regeneration Platform, are being studied to regenerate diseased and failing tissues and organs by combining biocompatible materials and a patient’s own cells. With this approach, Tengion is striving to address critical problems facing organ failure patients, including shortage of donor organs, the risk of organ rejection, and the high cost and toxicity of immunosuppressant medications.
“Tengion’s technology represents a tremendous opportunity for us to help shape the future of regenerative medicine and expand upon the convergence of biotechnology and medical devices,” says Gary J. Kurtzman, MD, Vice President and Managing Director in Safeguard’s Life Sciences Group, who will join Tengion’s Board of Directors. “Tengion, along with Advanced BioHealing, another one of our partner companies, is evidence that there is growing trend towards regenerative medicine, a space anticipated to become the source of significant innovation and medical products over the next decade. We look forward to working with Tengion’s management team and fellow investors to help the company achieve its objectives.
“Safeguard’s unique focus on regenerative medicine and overall experience in the life sciences will complement our technical know-how and provide excellent insight and strategic vision going forward,” said Steven Nichtberger, MD, Co-Founder, President and Chief Executive Officer of Tengion focus on regenerative medicine and excellent perspective. “We are thrilled to welcome Safeguard to our team and look forward to building upon our momentum to transform the lives of patients in need of an organ augmentation or replacement.” Dr. Nichtberger was recently awarded the prestigious Ernst & Young Entrepreneur Of The Year® award in the Emerging Company category.
Tengion, a clinical stage regenerative medicine company, focuses on developing, manufacturing and commercializing human neo-organs and neo-tissues using its Autologous Organ Regeneration Platform™. Tengion uses biocompatible materials and a patient’s own (autologous) cells to create a functional neo-organ or neo-tissue that is designed to catalyze the body’s innate ability to regenerate. Tengion’s product candidates may ultimately address the most critical problems facing organ and tissue failure patients, enabling people to lead healthier lives without donor transplants or the side effects of related therapies. www.tengion.com
About Safeguard Scientifics
Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc. (NYSE: SFE) provides growth capital for entrepreneurial and innovative technology and life sciences companies. Safeguard targets technology companies in Software as a Service (SaaS) / Internet-based Businesses, Technology-Enabled Services and Vertical Software Solutions, and life sciences companies in Molecular and Point-of-Care Diagnostics, Medical Devices and Specialty Pharmaceuticals with capital requirements between $5 and $50 million. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. For additional information and updates about Safeguard Scientifics, please visit www.safeguard.com.