transgene preparing to raise 150 million euros

Tue Mar 23, 2010 1:08pm IST

PARIS, March 23 (Reuters) - French biotechnology company Transgene (TRNG.PA: Quote, Profile, Research) is preparing to raise 150 million euros ($202.7 million) to transform itself into a drugmaker in the next five years, French newspaper Les Echos said on Tuesday.
No one at Transgene was immediately available to comment.

The company's main shareholders, the Merieux family, and the Dassault family would back Transgene's fund raising, Les Echos said on Tuesday, citing a source with knowledge of the matter.

Transgene said at its earnings presentation on Monday it expected to consume about half of the 64.7 million in cash it had available at the end of last year, saying it would appeal for a subsidy and benefit from a tax break on research.

Earlier this month, Transgene sealed an exclusive option deal with Swiss drugmaker Novartis (NOVN.VX: Quote, Profile, Research), which will look into developing and marketing Transgene's TG4010 cancer vaccine, but the optional nature of the deal disappointed investors.

Transgene Chief Executive Philippe Archinard said the deal was in line with the company's goal to turn into a biopharmaceutical group in the next five years. ($1=.7401 Euro) (Reporting by Caroline Jacobs, editing by Will Waterman)