8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

May 6, 2003

(Date of Report)

(Date of Earliest Event Reported)

TARGETED GENETICS CORPORATION

(Exact Name of Registrant as Specified in Charter)

Washington	0-23930	91-1549568
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(IRS Employer Identification No.)

1100 Olive Way, Suite 100, Seattle, WA 98101

(Address of Principal Executive Offices, Including Zip Code)

(206) 623-7612

(Registrant’s Telephone Number, Including Area Code)

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

Item 7. Financial Statements and Exhibits.

(c) Exhibits.

99.1    Press Release of Targeted Genetics Corporation dated May 6, 2003

Item 9. Regulation FD Disclosure and Disclosure Under Item 12.

The following information, which is required to be furnished under Item 12, “Results and Operations of Financial Condition,” is being furnished under Item 9, “Regulation FD Disclosure,” in accordance with the Securities and Exchange Commission Release No. 33-8216.

On May 6, 2003, Targeted Genetics Corporation issued a press release announcing its financial results for the quarter ended March 31, 2003. A copy of the press release is attached as Exhibit 99.1 and is incorporated into this current report by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TARGETED GENETICS CORPORATION
Date: May 6, 2003	By:	/s/    TODD E. SIMPSON
		Todd E. Simpson Vice President, Finance and Administration, Chief Financial Officer, Secretary and Treasurer

INDEX TO EXHIBITS

Exhibit Number	Description
99.1	Press Release of Targeted Genetics Corporation dated May 6, 2003.

EX-99.1

Exhibit 99.1

Contact:

Targeted Genetics Corporation

Courtney Self

206.521.7392

TARGETED GENETICS REPORTS FIRST QUARTER 2003

FINANCIAL RESULTS

Seattle, WA – May 6, 2003 — Targeted Genetics Corporation (Nasdaq: TGEN) today announced its financial results for the first quarter of 2003. As previously announced, the Company will hold a conference call with analysts at 10:30 AM EDT today. The call will be broadcast live over the Internet and can be accessed, along with replay information, at www.targetedgenetics.com.

For the first quarter of 2003, the Company reported a net loss of $830,000, or $0.02 per common share, compared to a net loss of $6.4 million, or $0.15 per common share for the first quarter of 2002.

Revenue for the first quarter of 2003 was $5.6 million compared to $5.4 million for the first quarter of 2002. 2003 revenue includes $3.9 million attributable to the Company’s hemophilia collaboration with Wyeth, which ended during the quarter, and revenue earned under its International AIDS Vaccine Initiative (IAVI) and Biogen collaborations. The Company did not earn revenue under its collaborations with Celltech, Inc. and Emerald Gene Systems, Ltd. for the three months ended March 31, 2003, compared to $1.1 million in 2002, as both collaborations concluded in 2002.

“Targeted Genetics has made significant progress in the first several months of 2003,” said H. Stewart Parker, President and Chief Executive Officer of Targeted Genetics Corporation. “We have extended our collaboration with IAVI and Columbus Children’s Research Institute (CCRI) providing up to $5.6 million in funding for the continued development of this program. We look forward to working with our collaborators to initiate a Phase I clinical trial to test our AIDS vaccine in humans later in 2003. We also

recently announced a new collaboration with the Cystic Fibrosis Foundation providing $1.7 million in funding in support of sites conducting our Phase IIb clinical trial, scheduled to begin patient enrollment mid-year 2003. And toward our goal of seeking opportunities to derive value from our manufacturing capabilities, we signed our first contract manufacturing agreement with GenVec Corporation.”

Ms. Parker continued, “At the end of 2002, we established an aggressive plan to advance our AIDS vaccine, cystic fibrosis and arthritis programs in order to meet significant milestones. So far this year, we have worked diligently to deliver on our goals and have accomplished quite a bit. As we advance our scientific programs, we continue to pursue partnerships for our cancer and hemophilia programs, and seek opportunities to secure additional funding to strengthen our financial position.”

Operating expenses for the first quarter of 2003 were $6.2 million, compared to $11.6 million for the first quarter in 2002. This planned decrease reflects a decrease in research and development expenses to $4.5 million for the first quarter of 2003 from $8.3 million for the same period in 2002. Similarly, general and administrative expenses for the first quarter of 2003 decreased to $1.3 million from $2.4 million for the same period in 2002. The Company’s equity in the net loss of Emerald Gene Systems was zero for the first quarter of 2003, down from $778,000 in 2002 as activities of this joint venture with Elan concluded in the third quarter of 2002. The Company recorded restructuring expenses of $281,000 during the first quarter of 2003 primarily related to the closure of its facility in Sharon Hill, Pennsylvania.

As of March 31, 2003, the Company had $12.2 million in cash and cash equivalents, as compared to $12.6 million as of December 31, 2002. During the quarter ended March 31, 2003, the Company received a $3.2 million payment from Wyeth in connection with the termination of its hemophilia collaboration. In addition to the Company’s cash resources, it expects to receive additional collaborative funding of up to $5.6 million under its collaborations during 2003, primarily from IAVI.

Targeted Genetics develops gene therapy products for treating acquired and inherited diseases. The Company has a lead clinical product development program targeting cystic fibrosis and a promising pipeline of product candidates focused on arthritis, an AIDS vaccine, hemophilia and cancer. The Company has a broad platform of gene delivery technologies as well as a promising body of technology for cellular therapy. For more information about Targeted Genetics Corporation, please visit the Company’s web site at http://www.targetedgenetics.com.

NOTE: This release contains forward-looking statements regarding our projected financial resources, anticipated clinical trials and regulatory filings and anticipated data from our clinical and preclinical programs. These statements involve current expectations, forecasts of future events and other statements that are not historical facts. Inaccurate assumptions and known and unknown risks and uncertainties can affect the accuracy of forward-looking statements. Actual results could differ materially from expectations for a number of reasons, including failure of our partners to provide funding, our failure to make progress with our clinical trials, our failure to obtain positive results from our preclinical programs, our failure to obtain regulatory approval and the other risks described in the section entitled “Factors Affecting Our Operating Results, Our Business and Our Stock Price” in our annual report on Form 10-K for the year ended December 31, 2002. You should not rely unduly on these forward-looking statements, which apply only as of the date of this release. We undertake no duty to publicly announce or report revisions to these statements as new information becomes available that may change our expectations.

TARGETED GENETICS CORPORATION

(in thousands, except per share information)

	Quarter ended March 31,
Statement of Operations Information:	2003			2002
	(unaudited)			(unaudited)
Revenue:
Collaborative agreements	$	5,639		$	4,531
Collaborative agreements with affiliates		—			839
Total revenue		5,639			5,370
Operating expenses:
Research & development		4,542			8,297
General & administrative		1,336			2,395
Restructure charges		281			—
Equity in loss of joint venture		—			778
Amortization of intangibles		—			126
Total operating expenses		6,159			11,596
Loss from operations		(520	)		(6,226	)
Investment income		52			87
Interest expense		(362	)		(267	)
Net loss	$	(830	)	$	(6,406	)
Net loss per common share	$	(0.02	)	$	(0.15	)
Shares used in computation of net loss per common share		50,566			44,137

TARGETED GENETICS CORPORATION

(in thousands)

Balance Sheet Information:	March 31, 2003		December 31, 2002
	(unaudited)
Cash and cash equivalents	$	12,231	$	12,606
Other current assets		692		1,622
Property and equipment, net		4,779		5,520
Other assets		32,921		32,965
Total assets	$	50,623	$	52,713
Current liabilities	$	10,197	$	11,282
Long-term obligations and other liabilities		22,595		22,770
Preferred stock and minority interest		12,765		12,765
Shareholders’ equity		5,066		5,896
Total liabilities and shareholders’ equity	$	50,623	$	52,713