Armata Pharmaceuticals, Inc. — Director's Dealing 2003

Nov 5, 2003

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: TARGETED GENETICS CORP /WA/ (TGEN)
CIK: 0000921114
Period of Report: 2000-08-09

Reporting Person: ELAN CORP PLC (10% Owner)
Reporting Person: ELAN INTERNATIONAL SERVICES LTD (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2000-08-09	Common Stock	P	382739	$13.064	Acquired	2531638	Indirect
2003-09-02	Common Stock	J	3577879	$2.09	Acquired	6109517	Indirect
2003-09-02	Common Stock	J	487248	$1.95	Acquired	6596765	Indirect
2003-09-02	Common Stock	J	101439	$1.88	Acquired	6698204	Indirect
2003-09-02	Common Stock	J	107044	$1.19	Acquired	6805248	Indirect
2003-09-02	Common Stock	J	124630	$0.96	Acquired	6929878	Indirect
2003-09-02	Common Stock	J	217549	$0.83	Acquired	7147427	Indirect
2003-09-02	Common Stock	J	87922	$0.65	Acquired	7235349	Indirect
2003-09-02	Common Stock	J	221757	$0.57	Acquired	7457106	Indirect
2003-09-02	Common Stock	J	277775	$0.49	Acquired	7734882	Indirect

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2001-09-26	Convertible Promissory Note	$6.11	P		Acquired		Common Stock (327399)	Indirect
2002-03-26	Convertible Promissory Note	$3.70	J		Acquired		Common Stock (32432)	Indirect
2002-04-25	Convertible Promissory Note	$3.78	P		Acquired		Common Stock (529801)	Indirect
2002-06-28	Convertible Promissory Note	$2.48	P		Acquired		Common Stock (1211509)	Indirect
2002-08-09	Convertible Promissory Note	$1.95	P		Acquired		Common Stock (487248)	Indirect
2002-09-26	Convertible Promissory Note	$1.19	J		Acquired		Common Stock (107044)	Indirect
2002-10-25	Convertible Promissory Note	$0.96	J		Acquired		Common Stock (124630)	Indirect
2002-12-28	Convertible Promissory Note	$0.83	J		Acquired		Common Stock (217549)	Indirect
2003-02-09	Convertible Promissory Note	$0.65	J		Acquired		Common Stock (87922)	Indirect
2003-03-26	Convertible Promissory Note	$0.49	J		Acquired		Common Stock (277775)	Indirect
2003-06-28	Convertible Promissory Note	$1.88	J		Acquired		Common Stock (101439)	Indirect
2003-08-09	Convertible Promissory Note	$2.80	J		Acquired		Common Stock (22650)	Indirect
2003-09-02	Convertible Promissory Note	$2.09	J		Acquired		Common Stock (144779)	Indirect
2003-09-02	Convertible Promissory Note	$6.11	J		Disposed		Common Stock (327399)	Indirect
2003-09-02	Convertible Promissory Note	$3.70	J		Disposed		Common Stock (32432)	Indirect
2003-09-02	Convertible Promissory Note	$3.78	J		Disposed		Common Stock (529801)	Indirect
2003-09-02	Convertible Promissory Note	$2.48	J		Disposed		Common Stock (1211509)	Indirect
2003-09-02	Convertible Promissory Note	$1.95	J		Disposed		Common Stock (487248)	Indirect
2003-09-02	Convertible Promissory Note	$1.19	J		Disposed		Common Stock (107044)	Indirect
2003-09-02	Convertible Promissory Note	$0.96	J		Disposed		Common Stock (124630)	Indirect
2003-09-02	Convertible Promissory Note	$0.83	J		Disposed		Common Stock (217549)	Indirect
2003-09-02	Convertible Promissory Note	$0.65	J		Disposed		Common Stock (87922)	Indirect
2003-09-02	Convertible Promissory Note	$0.49	J		Disposed		Common Stock (277775)	Indirect
2003-09-02	Convertible Promissory Note	$0.57	J		Disposed		Common Stock (221757)	Indirect
2003-09-02	Convertible Promissory Note	$1.88	J		Disposed		Common Stock (101439)	Indirect
2003-09-02	Convertible Promissory Note	$2.80	J		Disposed		Common Stock (22650)	Indirect
2003-09-02	Convertible Promissory Note	$2.09	J		Disposed		Common Stock (144779)	Indirect
2003-09-02	Series B Convertible Exchangeable Preferred Stock	$3.32	J	0	Acquired		Common Stock (0)	Indirect
2003-04-25	Convertible Promissory Note	$0.57	J		Acquired		Common Stock (221757)	Indirect

Footnotes

F1: These securities are or were beneficially owned indirectly by Elan Corporation, plc ("Elan") and directly by its wholly-owned subsidiary, Elan International Services, Ltd. ("EIS"). The Convertible Promissory Note was owned directly by Elan Pharma International Limited, another wholly-owned subsidiary of Elan, but the right to convert the Convertible Promissory Notes and receive Common Stock upon conversion was owned by EIS.

F2: The reporting person received the shares of common stock as a prepayment by the Issuer of principal and accrued interest in respect of a Convertible Promissory Note, at a price per share, in respect of each tranche, equal to the lesser of (i) $2.09 (the average of the closing price of the Common Stock for the 60 trading days ending two business days prior to the date of repayment) and (ii) the fixed conversion price for conversion of such tranche at the option of the holder of the conversion right.

F3: Each a drawdown of a tranche of the Convertible Promissory Note.

F4: Price at which the Convertible Promissory Note was convertible at the option of the holder of the conversion right. In addition, the Convertible Promissory Note was prepayable at the option of the Issuer on a per tranche basis by the issuance to the holder of the conversion right of a number of shares of Common Stock equal to the outstanding principal amount of such tranche and any and all accrued and unpaid interest thereon divided by the lesser of (1) the price equal to the average of the closing price of the Common Stock for the 60 trading days prior to the date of repayment and (2) the conversion price for conversion at the option of the holder of the conversion right.

F5: The Convertible Promissory Note was convertible until it was repaid in full. The stated maturity of the Convertible Promissory Note was July 21, 2005. However, it was repaid in full by the Issuer, effective September 2, 2003.

F6: Represents interest on the Convertible Promissory Note that was capitalized and added to the principal amount.

F7: The principal and accrued interest in respect of the Convertible Promissory Note was prepaid by the Issuer by the issuance of a number of shares of Common Stock equal to, for each tranche, the outstanding principal amount plus accrued interest divided by the lesser of (1) $2.09 and (2) the conversion price for conversion at the option of the holder of the conversion right.

F8: The 12,015 shares of Series B Convertible Exchangeable Preferred Stock accrues dividends equal to 7.0% per annum of $1,000.00 per share plus accrued dividends thereon, compounded on a semi-annual basis until July 21, 2005, payable by the issuance of additional shares of Common Stock upon conversion of the Series B Convertible Exchangeable Preferred Stock at a conversion price per share of $3.32, subject to customary antidilution adjustments. As of November 5, 2003, accrued dividends would be convertible into 1,245,215 shares of Common Stock. If the Series B Convertible Exchangeable Preferred Stock is held by the reporting person until at least July 21, 2005, the date on which dividends cease to accrue, accrued dividends will be convertible into 1,851,570 shares of Common Stock.