SEATTLE (AP) -- Biotechnology company Targeted Genetics Corp. said Wednesday it is selling a series of assets to Genzyme Corp. for $7 million in cash.
The company will sell a mix of patents and manufacturing-related equipment. Genzyme will also receive a license to use certain technology and materials necessary for manufacturing AAV vectors used for genetic therapy research.
Under the deal, Targeted Genetics will receive $3.5 million within five days of the closing and an additional $3.5 million in installments payable upon successful completion of specified transfer plan milestones. The transition plan should be complete by the end of the year.
Targeted Genetics will receive revenue from Genzyme if Genzyme sublicenses the acquired intellectual property within specified time periods. The company could also receive royalties on commercial sales of products using the AAV vector technology.
In addition, Genzyme licensed back to Targeted Genetics certain manufacturing and technology, including programs focusing on a type of blindness called Leber's Congenital Amaurosis, inflammatory arthritis and Huntington's Disease. Genzyme will receive royalties from Targeted Genetics on sales of products using that intellectual property.
Targeted Genetics said it should have the cash resources to continue operating through 2010.
Shares of Targeted Genetics surged 20 cents, or 76 percent, to 46 cents in midday trading. The stock has traded between 6 cents and 75 cents over the past 52 weeks.