Targanta Therapeutics Corporation (TARG)

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Targanta Reports Third-Quarter 2007 Financial Results
Thursday November 15, 8:00 am ET

CAMBRIDGE, Mass., Nov. 15 /PRNewswire-FirstCall/ -- Targanta Therapeutics Corporation (Nasdaq: TARG - News) today reported financial results for the quarter and nine months ended September 30, 2007.

Targanta reported a net loss of $21.8 million for the three months ended September 30, 2007, compared to a net loss of $6.9 million for the same period in 2006. This increase is primarily due to increases in research and development expenses related to advancement of the Company's lead antibiotic candidate, oritavancin, for which Targanta is currently preparing a U.S. regulatory submission and on which the Company is conducting additional clinical trials. For the nine months ended September 30, 2007, the Company reported a net loss of $52.7 million compared to a net loss of $21.5 million for the same period in 2006.

The Company had cash, cash equivalents and short-term investments totaling $48.7 million as of September 30, 2007.

On October 9, 2007, the Company completed its initial public offering, issuing 5.75 million shares of its Common Stock at a price of $10.00 per share. Net proceeds to the Company were approximately $51.4 million after deducting underwriting discounts and commissions and estimated offering expenses.

In connection with the initial public offering, all outstanding exchangeable shares issued by the Company's Canadian subsidiaries and all outstanding shares of Series A Convertible Preferred Stock, Series B Convertible Preferred Stock and Series C Convertible Preferred Stock were converted into 15.2 million shares of the Company's Common Stock. After the initial public offering, the Company has 21.0 million shares outstanding.

On a pro forma basis, when including the net proceeds of approximately $51.4 million from the initial public offering in October, Targanta would have had $100.1 million in cash, cash equivalents and short-term investments as of September 30, 2007.

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