Under the September 2009 asset purchase agreement, the Company sold manufacturing technologies and other adeno-associated viral (AAV) vector technology to Genzyme. Under the agreement, Genzyme agreed to pay up to $7 million for the assets and the successful transfer of the technology and also agreed to pay a portion of sublicensing revenue received during a specified timeframe and royalties on net product sales of products if Genzyme successfully commercializes products utilizing the acquired Targeted Genetics technology. The Company entered into a non-exclusive patent license agreement with AMT in 2006 which covers Glybera?®. The license agreement provides for AMT to pay royalties on net product sales, milestone payments upon the achievement of certain product development targets and annual maintenance payments.

As a result of our significant expense reduction efforts, resolution of liabilities and payments received from partners, the Company has a stable financial footing as we continue to work to maximize the value of existing assets and consider alternatives for advancing the Company, said B.G. Susan Robinson, President and Chief Executive Officer.

Source: Targeted Genetics Corporation