got a boost Tuesday after it said
is increasing its stake in the company to 19.9%.
Targeted Genetics saw its stock jump 90 cents, or 41.9%, to $3.05.
Under the agreement, which involves the repayment of $8.15 million in debt, Biogen Idec has agreed to convert $5.65 million of debt into 1 million shares of the gene-therapy company. Targeted Genetics will pay $500,000 of the remaining debt immediately and the remaining $2 million will be paid according to a new schedule.
"We are extremely pleased to have successfully modified the debt arrangement with Biogen Idec. The successful renegotiation of this debt with Biogen Idec reduces our long-term cash needs and strengthens the company financially," said H. Stewart Parker, president and CEO of Targeted Genetics.
Biogen Idec's shares dipped 6 cents, or 0.1%, to $48.35.