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Tengion Provides Business Update and Reports Second Quarter 2013 Financial Results
Date:8/14/2013

June 30, 2013, the Company reported an adjusted net loss of $5.8 million, or $1.75 per basic and diluted common share, compared to an adjusted net loss of $4.5 million, or $1.89 per basic and diluted common share, for the same period in 2012. The increased adjusted net loss for the 2013 period was primarily due to an increase in interest expense of $1.7 million, offset in part by a decrease in research and development expense of $0.3 million.

The increase in interest expense was primarily due to amortization of $1.3 million of debt discount and deferred financing costs associated with the private placement of $15.0 million and the private placement of $18.6 million aggregate principal amount of Senior Secured Convertible Notes completed in October 2012 and June 2013, respectively. The decrease in research and development expense for the three months ended June 30, 2013 was primarily due to a reduction in compensation and related expenses resulting from fewer employees as compared to the three months ended June 30, 2012, as well as a reduction in external services.

As of June 30, 2013, the Company held $13.9 million in cash and cash equivalents. The Company received proceeds of $20.6 million in July 2013 relating to the Celgene and financing transactions consummated in June 2013.

About Tengion
Tengion, a clinical-stage regenerative medicine company, is focused on developing its Organ Regeneration Platform™ to harness the intrinsic regenerative pathways of the body to regenerate a range of native-like organs and tissues with the goal of delaying or eliminating the need for chronic disease therapies, organ transplantation, and the administration of anti-rejection medications. An initial clinical trial is ongoing for the Company's Neo-Urinary Conduit™, an autologous implant that is intended to catalyze regeneration of native-like urinary tissue for bladder cancer patients requiring a urinary diversion following bladder removal. Seven
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