Tengion Inc., a leader in developing human organs and tissues from a patient’s own cells, has announced plans to locate its corporate headquarters and commercial manufacturing facility in East Norriton (Montgomery County), Pa.

As part of his 2006-07 budget, Pennsylvania Gov. Ed Rendell introduced the $500 million Jonas Salk Legacy Fund to provide capital and infrastructure support for Pennsylvania’s growing bioscience industry.

The fund will provide grants in support of, and aligned with, research already underway in Pennsylvania, including bioinformatics, biomedical devices and diagnostics, bio and nanotechnology, drug discovery tools and targets, regenerative medicine and therapeutics. These investments are expected to create 12,000 new jobs in communities across the commonwealth.

“Our decision to locate in Pennsylvania was the result of an extensive analysis, driven primarily by our ability to recruit a world class leadership team and employees with extensive biopharmaceutical and device-oriented manufacturing experience to implement a transformational regenerative medicine technology,” said Steven Nichtberger, president and CEO of Tengion. “Pennsylvania distinguished itself as a leading center in the biopharmaceutical manufacturing universe, providing a nurturing environment for a growing biotech company in a geographic region that has a legacy of biopharmaceutical manufacturing expertise.

Tengion will occupy at least 45,000 square feet of an existing 85,000 square foot facility in East Norriton Township and manufacture neo-organs for late-stage clinical trials and the neo-bladder, the company’s leading product currently in development.

Later this year, Tengion plans to ask the U.S. Food and Drug Administration for permission to conduct clinical trials with the neo-bladder. The company hopes to begin those trials later this year in children who have spina bifida and adults with spinal cord injuries and failing bladders.

Founded in 2003, Tengion is a leader in developing autologous neo-organs and tissues, such as bladders, that are derived from the patient’s own (autologous) cells. Tengion’s proprietary approach to regenerative medicine has the potential to enable people with organ and tissue failure to lead healthier lives without donor transplants or the side effects of current therapies.

The state’s Department of Community and Economic Development and the Governor’s Action Team offered an incentive package of nearly $2 million to the company that includes a $1.55 million loan through the Machinery and Equipment Loan Fund, a $100,000 Opportunity Grant, $100,000 in Job Training Assistance funds and $186,000 in Job Creation Tax Credits.