|  [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------|-----------------------------------------------------------------------------------------|

|   | For the quarterly period ended March 31, 2012 |
|--------|-----------------------------------------------|

|  [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------------------|------------------------------------------------------------------------------------------|

|   | For the transition period from _____ to _____ |
|--------|-----------------------------------------------|

|                                                                               |
|------------------------------------------------------------------------------------|
|  Tengion, Inc.                                                                |
| (Exact name of registrant as specified in its charter)                             |
| Delaware                                                                           |   | 20-0214813 |
| (State or other jurisdiction ofincorporation or organization)                      |   | (I.R.S. Employer Identification No.) |
|                                                                               |   |   |
| 3929 Westpoint Boulevard, Suite G Winston-Salem, NC 27103                          |   | (336) 722-5855 |
| (Address of principal executive offices)                                           |   | (Registrant’s telephone number,including area code) |
| Not Applicable                                                                     |
| (Former name, former address and former fiscal year, if changed since last report) |
|                                                                               |   |   |

| Large accelerated filer  o | Accelerated filer  o | Non-accelerated filer  o | Smaller reporting company x |
|---------------------------------|---------------------------|-------------------------------|-----------------------------|

----

----

| Item 1.                               | Financial Statements (unaudited)                                                              |   |
|---------------------------------------|-----------------------------------------------------------------------------------------------|--------|
|                                  | Balance Sheets                                                                                | 1      |
|                                  | Statements of Operations                                                                      | 2      |
|                                  | Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) | 3      |
|                                  | Statements of Cash Flows                                                                      | 5      |
|                                  | Notes to  Financial Statements                                                      | 6      |
| Item 2.                               | Management’s Discussion and Analysis of Financial Condition and Results of Operations   | 17     |
| Item 3.                               | Quantitative and Qualitative Disclosures About Market Risk                                    | 23     |
| Item 4.                               | Controls and Procedures                                                                       | 23     |
|                                  |                                                                                          |   |
| Part II.  Other Information |
| Item 1.                               | Legal Proceedings                                                                             | 24     |
| Item 1A.                              | Risk Factors                                                                                  | 24     |
| Item 2.                               | Unregistered Sales of Equity Securities and Use of Proceeds                                   | 24     |
| Item 3.                               | Defaults Upon Senior Securities                                                               | 24     |
| Item 4.                               | Mine Safety Disclosures                                                                       | 24     |
| Item 5.                               | Other Information                                                                             | 24     |
| Item 6.                               | Exhibits                                                                                      | 25     |
|                                  |                                                                                          |   |
| Signature Page                        |                                                                                          | 26     |

----

Item 

TENGION

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |         | December 31,2011 |     |   | March 31, 2012 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------|----------|--------|---------------------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |         |
| Current assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |    |             |     |   |                |   |   |   |
| Cash and cash equivalents, including $1,194 of cash at December 31, 2011 and March 31, 2012, collateralizing letters of credit (Note 14)                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |    | $                | 9,244    |   |           | $      | 7,349 |   |
| Short-term investments                                                                                                                                          |         |             | 6,066    |   |                |   | 1,517 |   |
| Prepaid expenses and other                                                                                                                                      |    |             | 408      |   |           |   | 450 |   |
| Total current assets                                                                                                                                                                               |    |             | 15,718   |   |           |   | 9,316 |   |
| Property and equipment, net of accumulated depreciation of $12,622 and $12,752 as of December 31, 2011 and March 31, 2012, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |    |             | 1,021    |   |           |   | 888 |   |
| Other assets                                                                                                                                |    |             | 1,078    |   |           |   | 1,069 |   |
| Total assets                                                                                                                                |    | $                | 17,817   |   |           | $      | 11,273 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |    |             |     |   |                |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |    |             |     |   |                |   |   |   |
| Current portion of long-term debt                                                                                                                               |    | $                | 2,205    |   |           | $      | 2,363 |   |
| Current portion of lease liability                                                                                                                              |    |             | 739      |   |           |   | 721 |   |
| Accounts payable                                                                                                                                                |    |             | 829      |   |           |   | 546 |   |
| Accrued compensation and benefits                                                                                                                               |    |             | 2,354    |   |                |   | 837 |   |
| Accrued expenses                                                                                                                                                |         |             | 437      |   |                |   | 578 |   |
| Warrant liability                                                                                                                                               |    |             | 2,511    |   |           |   | 3,034 |   |
| Total current liabilities                                                                                                                                                                          |    |             | 9,075    |   |           |   | 8,079 |   |
| Long-term debt                                                                                                                              |    |             | 2,782    |   |           |   | 2,172 |   |
| Lease liability                                                                                                                             |    |             | 943      |   |           |   | 813 |   |
| Other liabilities                                                                                                                           |    |             | 2        |   |           |   | 4 |   |
| Total liabilities                                                                                                                                                                                  |    |             | 12,802   |   |           |   | 11,068 |   |
| Commitments and contingencies (Note 14)                                                                                                     |    |             | —  |   |           |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |    |             |     |   |                |   |   |   |
| Stockholders’ equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |    |             |     |   |                |   |   |   |
| Preferred stock, $0.001 par value; 10,000 shares authorized; zero shares issued or outstanding at December 31, 2011 and March 31, 2012, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                               |         |             | —  |   |           |   | — |   |
| Common stock, $0.001 par value; 90,000 shares authorized; 23,814 and 24,495 shares issued and outstanding at December 31, 2011 and  March 31, 2012, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |             | 24       |   |           |   | 25 |   |
| Additional paid-in capital                                                                                                                                      |    |             | 235,235  |   |                |   | 235,373 |   |
| Deficit accumulated during the development stage                                                                                                                |    |             | (230,244 | )      |                |   | (235,193 | ) |
| Total stockholders’ equity                                                                                                                                                                   |    |             | 5,015    |   |           |   | 205 |   |
| Total liabilities and stockholders’ equity                                                                                            |    | $                | 17,817   |   |                | $      | 11,273 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |         |             |     |   |                |   |   |   |

----

TENGION

|                                                                     |   | Three Months EndedMarch 31, |    |         | Period fromJuly 10, 2003 (inception) throughMarch 31, |   |
|--------------------------------------------------------------------------|--------|-----------------------------|---------|--------------|-------------------------------------------------------|--------|
|                                                                     |   | 2011                        |    |         | 2012                                                  |   |   |  2012 |   |
|                                                                     |   |                        |    |         |                                                  |   |   |   |   |   |   |   |
| Revenues                                                       |   | $                           | — |         |                                                  | $      | — |   |   | $ | — |   |
|                                                                     |   |                        |    |         |                                                  |   |   |   |   |   |   |   |
| Operating expenses:                                                      |   |                        |    |         |                                                  |   |   |   |   |   |   |   |
| Research and development                                       |   |                        | 3,345   |    |                                                  |   | 2,694 |   |   |   | 120,551 |   |
| General and administrative                                     |   |                        | 1,776   |    |                                                  |   | 1,381 |   |   |   | 43,274 |   |
| Depreciation                                              |   |                        | 1,127   |    |                                                  |   | 136 |   |   |   | 23,288 |   |
| Impairment of property and equipment            |   |                        | — |         |                                                  |   | — |   |   |   | 7,371 |   |
| Other expense                                        |   |                        | 942     |         |                                                  |   | 48 |   |   |   | 1,753 |   |
|   Total operating expenses                           |   |                        | 7,190   |         |                                                  |   | 4,259 |   |   |   | 196,237 |   |
|                                                                     |   |                        |    |         |                                                  |   |   |   |   |   |   |   |
| Loss from operations                                                     |   |                        | (7,190  | )       |                                                  |   | (4,259 | ) |   |   | (196,237 | ) |
|                                                                     |   |                        |    |         |                                                  |   |   |   |   |   |   |   |
| Interest income                                                |   |                        | 14      |    |                                                  |   | 7 |   |   |   | 8,519 |   |
| Interest expense                                          |   |                        | (272    | )            |                                                  |   | (174 | ) |   |   | (15,063 | ) |
| Change in fair value of warrant liability                           |   |                        | 419     |         |                                                  |   | (523 | ) |   |   | 15,975 |   |
|  Net loss                                       |   | $                           | (7,029  | )       |                                                  | $      | (4,949 | ) |   | $ | (186,806 | ) |
|                                                                     |   |                        |    |         |                                                  |   |   |   |   |   |   |   |
| Basic and diluted net loss attributable to common stockholders per share |   | $                           | (0.45   | )       |                                                  | $      | (0.21 | ) |   |   |   |   |
|                                                                     |   |                        |    |         |                                                  |   |   |   |   |   |   |   |
| Weighted-average common stock outstanding :                              |   |                        |    |         |                                                  |   |   |   |   |   |   |   |
|       Basic and diluted     |   |                        | 15,711  |         |                                                  |   | 23,699 |   |   |   |   |   |

----

TENGION

|                                                                                            |   |                                  |    |   |         |   |    | Stockholders’ equity (deficit) |   |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------|--------------|--------|---------|--------------------------------------|--------|
|                                                                                            |   | Redeemable convertiblepreferred stock |    |   | Common stock |   |    | Additional paid-in                   |   |   | Deferred |   |   | Deficit accumulated during the development |   |   |   |   |
|                                                                                            |   | Shares                                |    |   | Amount       |   |    | Shares                               |   |   | Amount |   |   | capital |   |   | compensation |   |   | stage |   |   | Total |   |
|                                                                                            |   |                                  |    |   |         |   |    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, July 10, 2003                                                                          |   |                                  | — |   |         | $      | — |                                 |   |   | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Issuance of common stock to initial stockholder                                                 |   |                                  | — |   |         |   | — |                                 |   |   | 2,000 |   |   |   | 2 |   |   |   | (2 | )  |   |   | — |   |   |   | — |   |   |   | — |   |
| Effect of reverse stock split (see Note 3)                                                      |   |                                  | — |   |         |   | — |                                 |   |   | (1,862 | )  |   |   | (2 | )  |   |   | 2 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net loss                                                                                        |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1,032 | )  |   |   | (1,032 | )  |
| Balance, December 31, 2003                                                                      |   |                                  | — |   |         |   | — |                                 |   |   | 138 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1,032 | )  |   |   | (1,032 | )  |
| Issuance of Series A Redeemable Convertible Preferred stock at $1.62 per share, net of expenses |   |                                  | 18,741  |   |         |   | 30,126  |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Conversion of notes payable, including interest                                                 |   |                                  | 2,203   |   |         |   | 3,562   |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Issuance of restricted common stock to employees and nonemployees                               |   |                                  | — |   |         |   | — |                                 |   |   | 240 |   |   |   | 1 |   |   |   | 336 |   |   |   | (336 | )  |   |   | — |   |   |   | 1 |   |
| Issuance of common stock to consultants                                                         |   |                                  | — |   |         |   | — |                                 |   |   | 140 |   |   |   | — |   |   |   | 21 |   |   |   | — |   |   |   | — |   |   |   | 21 |   |
| Issuance of common stock to convertible noteholders                                             |   |                                  | — |   |         |   | — |                                 |   |   | 93 |   |   |   | — |   |   |   | 67 |   |   |   | — |   |   |   | — |   |   |   | 67 |   |
| Issuance of options to purchase common stock to consultants for services rendered               |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | 14 |   |   |   | (14 | )  |   |   | — |   |   |   | — |   |
| Amortization of deferred compensation                                                           |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 23 |   |   |   | — |   |   |   | 23 |   |
| Change in value of restricted common stock subject to vesting                                   |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | 11 |   |   |   | (11 | )  |   |   | — |   |   |   | — |   |
| Accretion of redeemable convertible preferred stock to redemption value                         |   |                                  | — |   |         |   | 1,035   |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1,035 | )  |   |   | (1,035 | )  |
| Net loss                                                                                        |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (2,438 | )  |   |   | (2,438 | )  |
| Balance, December 31, 2004                                                                      |   |                                  | 20,944  |   |         |   | 34,723  |                                 |   |   | 611 |   |   |   | 1 |   |   |   | 449 |   |   |   | (338 | )  |   |   | (4,505 | )  |   |   | (4,393 | )  |
| Issuance of Series A Redeemable Convertible Preferred stock at $1.62 per share, net of expenses |   |                                  | 3,247   |   |         |   | 5,223   |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Issuance of restricted common stock to employees and nonemployees at $2.32 per share            |   |                                  | — |   |         |   | — |                                 |   |   | 60 |   |   |   | — |   |   |   | 140 |   |   |   | (139 | )  |   |   | — |   |   |   | 1 |   |
| Issuance of warrants to purchase preferred stock to noteholders                                 |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | 681 |   |   |   | — |   |   |   | — |   |   |   | 681 |   |
| Issuance of options to purchase common stock to consultants for services rendered               |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | 7 |   |   |   | (7 | )  |   |   | — |   |   |   | — |   |
| Amortization of deferred compensation                                                           |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 111 |   |   |   | — |   |   |   | 111 |   |
| Accretion of redeemable convertible preferred stock to redemption value                         |   |                                  | — |   |         |   | 3,164   |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (3,164 | )  |   |   | (3,164 | )  |
| Net loss                                                                                        |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (9,627 | )  |   |   | (9,627 | )  |
| Balance, December 31, 2005                                                                      |   |                                  | 24,191  |   |         |   | 43,110  |                                 |   |   | 671 |   |   |   | 1 |   |   |   | 1,277 |   |   |   | (373 | )  |   |   | (17,296 | )  |   |   | (16,391 | )  |
| Issuance of Series B Redeemable Convertible Preferred stock at $1.82 per share, net of expenses |   |                                  | 27,637  |   |         |   | 50,040  |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Issuance of restricted common stock to employees                                                |   |                                  | — |   |         |   | — |                                 |   |   | 3 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Issuance of common stock upon exercise of options                                               |   |                                  | — |   |         |   | — |                                 |   |   | 4 |   |   |   | — |   |   |   | 9 |   |   |   | — |   |   |   | — |   |   |   | 9 |   |
| Repurchased nonvested restricted stock                                                          |   |                                  | — |   |         |   | — |                                 |   |   | (14 | )  |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Reclassification of deferred compensation                                                       |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | (373 | ) |   |   | 373 |   |   |   | — |   |   |   | — |   |
| Reclassification of warrants to purchase preferred stock                                        |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | (681 | ) |   |   | — |   |   |   | — |   |   |   | (681 | )  |
| Stock-based compensation expense                                                                |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | 400 |   |   |   | — |   |   |   | — |   |   |   | 400 |   |
| Accretion of redeemable convertible preferred stock to redemption value                         |   |                                  | — |   |         |   | 5,640   |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (5,640 | )  |   |   | (5,640 | )  |
| Net loss                                                                                        |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (20,873 | )  |   |   | (20,873 | )  |
| Balance, December 31, 2006                                                                      |   |                                  | 51,828  |   |         |   | 98,790  |                                 |   |   | 664 |   |   |   | 1 |   |   |   | 632 |   |   |   | — |   |   |   | (43,809 | )  |   |   | (43,176 | )  |
| Issuance of Series C Redeemable Convertible Preferred stock at $1.82 per share, net of expenses |   |                                  | 18,333  |   |         |   | 33,219  |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Issuance of common stock upon exercise of options                                               |   |                                  | — |   |         |   | — |                                 |   |   | 16 |   |   |   | — |   |   |   | 60 |   |   |   | — |   |   |   | — |   |   |   | 60 |   |
| Repurchased vested restricted stock                                                             |   |                                  | — |   |         |   | — |                                 |   |   | (5 | )  |   |   | — |   |   |   | (94 | ) |   |   | — |   |   |   | — |   |   |   | (94 | ) |
| Stock-based compensation expense                                                                |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | 664 |   |   |   | — |   |   |   | — |   |   |   | 664 |   |
| Accretion of redeemable convertible preferred stock to redemption value                         |   |                                  | — |   |         |   | 8,742   |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (8,742 | )  |   |   | (8,742 | )  |
| Net loss                                                                                        |   |                                  | — |   |         |   | — |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (30,988 | )  |   |   | (30,988 | )  |
| Balance, December 31, 2007                                                                      |   |                                  | 70,161  |   |         | $      | 140,751 |                                 |   |   | 675 |   |   | $ | 1 |   |   | $ | 1,262 |   |   | $ | — |   |   | $ | (83,539 | ) |   | $ | (82,276 | ) |
|                                                                                            |   |                                  |    |   |         |   |    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                            |   |                                  |    |    |         |   |     | Stockholders’ equity (deficit) |   |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|---------|--------------|--------|----------|--------------------------------------|--------|
|                                                                                            |   | Redeemable convertiblepreferred stock |    |    | Common stock |   |     | Additional paid-in                   |   |   | Deferred |   |   | Deficit accumulated during the development |   |   |   |   |
|                                                                                            |   | Shares                                |    |    | Amount       |   |     | Shares                               |   |   | Amount |   |   | capital |   |   | compensation |   |   | stage |   |   | Total |   |
| Balance, December 31, 2007                                                                      |   |                                  | 70,161  |    |         | $      | 140,751  |                                 |   |   | 675 |   |   | $ | 1 |   |   | $ | 1,262 |   |   | $ | — |   |   | $ | (83,539 | ) |   | $ | (82,276 | ) |
| Issuance of Series C Redeemable Convertible Preferred stock at $1.82 per share, net of expenses |   |                                  | 11,793  |    |         |   | 21,352   |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Issuance of common stock upon exercise of options                                               |   |                                  | — |    |         |   | —  |                                 |   |   | 8 |   |   |   | — |   |   |   | 28 |   |   |   | — |   |   |   | — |   |   |   | 28 |   |
| Repurchased vested restricted stock                                                             |   |                                  | — |    |         |   | —  |                                 |   |   | (1 | )  |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Stock-based compensation expense                                                                |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | 1,317 |   |   |   | — |   |   |   | — |   |   |   | 1,317 |   |
| Accretion of redeemable convertible preferred stock to redemption value                         |   |                                  | — |    |         |   | 11,754   |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (11,754 | )  |   |   | (11,754 | )  |
| Net loss                                                                                        |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (42,393 | )  |   |   | (42,393 | )  |
| Balance, December 31, 2008                                                                      |   |                                  | 81,954  |    |         |   | 173,857  |                                 |   |   | 682 |   |   |   | 1 |   |   |   | 2,607 |   |   |   | — |   |   |   | (137,686 | )  |   |   | (135,078 | )  |
| Issuance of common stock upon exercise of options                                               |   |                                  | — |    |         |   | —  |                                 |   |   | 20 |   |   |   | — |   |   |   | 54 |   |   |   | — |   |   |   | — |   |   |   | 54 |   |
| Stock-based compensation expense                                                                |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | 855 |   |   |   | — |   |   |   | — |   |   |   | 855 |   |
| Accretion of redeemable convertible preferred stock to redemption value                         |   |                                  | — |    |         |   | 14,059   |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (14,059 | )  |   |   | (14,059 | )  |
| Net loss                                                                                        |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (29,845 | )  |   |   | (29,845 | )  |
| Balance, December 31, 2009                                                                      |   |                                  | 81,954  |    |         |   | 187,916  |                                 |   |   | 702 |   |   |   | 1 |   |   |   | 3,516 |   |   |   | — |   |   |   | (181,590 | )  |   |   | (178,073 | )  |
| Issuance of common stock upon exercise of options                                               |   |                                  | — |    |         |   | —  |                                 |   |   | 32 |   |   |   | — |   |   |   | 14 |   |   |   | — |   |   |   | — |   |   |   | 14 |   |
| Accretion of redeemable convertible preferred stock to redemption value                         |   |                                  | — |    |         |   | 3,993    |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (3,993 | )  |   |   | (3,993 | )  |
| Conversion of preferred stock to common stock                                                   |   |                                  | (81,954 | )  |         |   | (191,909 | )                                    |   |   | 5,652 |   |   |   | 5 |   |   |   | 191,904 |   |   |   | — |   |   |   | — |   |   |   | 191,909 |   |
| Conversion of preferred stock warrants to common stock warrants                                 |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | 123 |   |   |   | — |   |   |   | — |   |   |   | 123 |   |
| Proceeds from initial public offering, net of expenses                                          |   |                                  | — |    |         |   | —  |                                 |   |   | 6,000 |   |   |   | 6 |   |   |   | 25,721 |   |   |   | — |   |   |   | — |   |   |   | 25,727 |   |
| Stock-based compensation expense                                                                |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | 953 |   |   |   | — |   |   |   | — |   |   |   | 953 |   |
| Net loss                                                                                        |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (25,600 | )  |   |   | (25,600 | )  |
| Balance, December 31, 2010                                                                      |   |                                  | — |    |         |   | —  |                                 |   |   | 12,386 |   |   |   | 12 |   |   |   | 222,231 |   |   |   | — |   |   |   | (211,183 | )  |   |   | 11,060 |   |
| Proceeds from equity financing, net of expenses                                                 |   |                                  | — |    |         |   | —  |                                 |   |   | 11,079 |   |   |   | 11 |   |   |   | 28,930 |   |   |   | — |   |   |   | — |   |   |   | 28,941 |   |
| Issuance of warrants to purchase common stock issued in connection with equity financing        |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | (16,947 | ) |   |   | — |   |   |   | — |   |   |   | (16,947 | ) |
| Issuance of common stock upon exercise of options                                               |   |                                  | — |    |         |   | —  |                                 |   |   | 187 |   |   |   | 1 |   |   |   | 82 |   |   |   | — |   |   |   | — |   |   |   | 83 |   |
| Issuance of restricted stock to employees                                                       |   |                                  | — |    |         |   | —  |                                 |   |   | 311 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Cancellation of restricted stock to employees                                                   |   |                                  | — |    |         |   | —  |                                 |   |   | (149 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Issuance of warrants to purchase common stock in connection with debt financing                 |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | 105 |   |   |   | — |   |   |   | — |   |   |   | 105 |   |
| Stock-based compensation expense                                                                |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | 834 |   |   |   | — |   |   |   | — |   |   |   | 834 |   |
| Net loss                                                                                        |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (19,061 | )  |   |   | (19,061 | )  |
| Balance, December 31, 2011                                                                      |   |                                  | — |    |         |   | —  |                                 |   |   | 23,814 |   |   |   | 24 |   |   |   | 235,235 |   |   |   | — |   |   |   | (230,244 | ) |   |   | 5,015 |   |
| Issuance of common stock upon exercise of options                                               |   |                                  | — |    |         |   | —  |                                 |   |   | 19 |   |   |   | — |   |   |   | 8 |   |   |   | — |   |   |   | — |   |   |   | 8 |   |
| Issuance of restricted stock to employees                                                       |   |                                  | — |    |         |   | —  |                                 |   |   | 679 |   |   |   | 1 |   |   |   | (1 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Cancellation of restricted stock to employees                                                   |   |                                  | — |    |         |   | —  |                                 |   |   | (17 | ) |   |   | — |   |   |   | (4 | ) |   |   | — |   |   |   | — |   |   |   | (4 | ) |
| Stock-based compensation expense                                                                |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | 135 |   |   |   | — |   |   |   | — |   |   |   | 135 |   |
| Net loss                                                                                        |   |                                  | — |    |         |   | —  |                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (4,949 | )  |   |   | (4,949 | )  |
| Balance, March 31, 2012                                                                         |   |                                  | — |    |         | $      | —  |                                 |   |   | 24,495 |   |   | $ | 25 |   |   | $ | 235,373 |   |   | $ | — |   |   | $ | (235,193 | ) |   | $ | 205 |   |
|                                                                                            |   |                                  |    |    |         |   |     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

TENGION

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                        |    |                                                          |   |   |    |   |   |   |     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Three Months EndedMarch 31, |    | Period fromJuly 10, 2003(inception)throughMarch 31, 2012 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2011                        |    | 2012                                                          |   |
| Cash flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                        |    |                                                          |   |   |    |   |   |   |     |   |
| Net loss                                                                                                                                                       |   | $                           | (7,029  | )                                                             |   | $      | (4,949  | )      |   | $      | (186,806 | )      |
| Adjustments to reconcile net loss to net cash used in operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                        |    |                                                          |   |   |    |   |   |   |     |   |
| Depreciation                                                                                                                                                                  |   |                        | 1,127   |                                                          |   |   | 136     |   |   |   | 23,288   |   |
| Change in fair value of warrant liability                                                                                                                                     |   |                        | (419    | )                                                             |   |   | 523     |   |   |   | (15,975  | )      |
| Charge related to lease liability                                                                                                                                             |   |                        | 942     |                                                          |   |   | 48      |   |   |   | 1,753    |   |
| Loss on disposition of property and equipment                                                                                                                                 |   |                        | — |                                                          |   |   | — |   |   |   | 119      |   |
| Impairment of property and equipment                                                                                                                                          |   |                        | — |                                                          |   |   | — |   |   |   | 7,371    |   |
| Amortization of net discount on short-term investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        | — |                                                          |   |   | — |   |   |   | (149     | )      |
| Noncash interest expense                                                                                                                                                      |   |                        | 69      |                                                          |   |   | 30      |   |   |   | 2,578    |   |
| Noncash rent (income) expense                                                                                                                                                 |   |                        | (3      | )                                                             |   |   | 2       |   |   |   | 219      |   |
| Stock-based compensation expense                                                                                                                                              |   |                        | 257     |                                                          |   |   | 135     |   |   |   | 5,314    |   |
| Changes in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                        |    |                                                          |   |   |    |   |   |   |     |   |
| Prepaid expenses and other assets                                                                                                                                                            |   |                        | (748    | )                                                             |   |   | (45     | )      |   |   | (1,673   | )      |
| Accounts payable                                                                                                                                                                             |   |                        | 39      |                                                          |   |   | (283    | )      |   |   | 587      |   |
| Accrued expenses and other                                                                                                                                                                   |   |                        | (1,070  | )                                                             |   |   | (1,571  | )      |   |   | 1,192    |   |
| Net cash used in operating activities                                                                                                                                                                            |   |                        | (6,835  | )                                                             |   |   | (5,974  | )      |   |   | (162,182 | )      |
| Cash flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                        |    |                                                          |   |   |    |   |   |   |     |   |
| Purchases of short-term investments                                                                                                                            |   |                        | — |                                                          |   |   | — |   |   |   | (324,508 | )      |
| Sales and redemption of short-term investments                                                                                                                 |   |                        | — |                                                          |   |   | 4,548   |   |   |   | 323,139  |   |
| Cash paid for property and equipment                                                                                                                           |   |                        | (48     | )                                                             |   |   | (3      | )      |   |   | (31,677  | )      |
| Proceeds from the sale of property and equipment                                                                                                               |   |                        | — |                                                          |   |   | — |   |   |   | 11       |   |
| Net cash (used by) provided by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        | (48     | )                                                             |   |   | 4,545   |   |   |   | (33,035  | )      |
| Cash flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                        |    |                                                          |   |   |    |   |   |   |     |   |
| Proceeds from sales of redeemable convertible preferred stock and warrants, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        | — |                                                          |   |   | — |   |   |   | 139,960  |   |
| Proceeds from sales of common stock and warrants, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                        | 29,092  |                                                          |   |   | 4       |   |   |   | 54,921   |   |
| Repurchase of restricted stock                                                                                                                                 |   |                        | — |                                                          |   |   | — |   |   |   | (94      | )      |
| Proceeds from long-term debt, net of issuance costs                                                                                                            |   |                        | 4,907   |                                                          |   |   | — |   |   |   | 39,517   |   |
| Payments on long-term debt                                                                                                                                     |   |                        | (7,610  | )                                                             |   |   | (470    | )      |   |   | (31,738  | )      |
| Net cash provided by (used in) financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        | 26,389  |                                                          |   |   | (466    | )      |   |   | 202,566  |   |
| Net increase (decrease) in cash and cash equivalents                                                                                            |   |                        | 19,506  |                                                          |   |   | (1,895  | )      |   |   | 7,349    |   |
| Cash and cash equivalents, beginning of period                                                                                                  |   |                        | 11,972  |                                                          |   |   | 9,244   |   |   |   | —  |   |
| Cash and cash equivalents, end of period                                                                                                        |   | $                           | 31,478  |                                                          |   | $      | 7,349   |   |   | $      | 7,349    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                        |    |                                                          |   |   |    |   |   |   |     |   |

----

Tengion

| (1) | Organization and Nature of Operations |
|-----|---------------------------------------|

| (2) | Management’s Plans to Continue as a Going Concern |
|-----|---------------------------------------------------------|

----

| (3) | Basis of Presentation and Reverse Stock Split |
|-----|-----------------------------------------------|

| (4) | Use of Estimates |
|-----|------------------|

| (5) | Net Loss Attributable to Common Stockholders Per Share |
|-----|--------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        |       |   |   |   |       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Three Months EndedMarch 31, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2011                        |       | 2012   |
| Shares underlying warrants outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                        | 10,645,888 |   |   |   | 10,645,888 |   |
| Shares underlying options outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                        | 1,370,263  |   |   |   | 2,407,563  |   |
| Unvested restricted stock                                                                                              |   |                        | —    |   |   |   | 759,618    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        |       |   |   |   |       |   |

----

| (6) | Supplemental Cash Flow Information |
|-----|------------------------------------|

|                                                                                   |   | Three Months Ended March 31, |    |   |   Period from July 10, 2003(inception) throughMarch 31, |   |
|----------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|-------------------------------------------------------------------|--------|
|                                                                                   |   | 2011                         |    |   | 2012                                                              |   |   | 2012 |   |
| Supplemental cash flow disclosures:                                                    |   |                         |    |   |                                                              |   |   |   |   |
| Noncash investing and financing activities:                                            |   |                         |    |   |                                                              |   |   |   |   |
| Conversion of note principal to redeemable convertible preferred stock                 |   | $                            | — |   |                                                              | $      | — |   |   | $ | 3,562 |   |
| Convertible note issued to initial stockholder for consulting expense                  |   |                         | — |   |                                                              |   | — |   |   |   | 210 |   |
| Fair value of warrants issued with issuance of long-term debt                          |   |                         | 105     |   |                                                              |   | — |   |   |   | 2,290 |   |
| Fair value of warrants issued with sale of common stock                                |   |                         | 16,947  |   |                                                              |   | — |   |   |   | 16,947 |   |
| Conversion of redeemable convertible preferred stock into 5,652 shares of common stock |   |                         | — |   |                                                              |   | — |   |   |   | 191,909 |   |
| Conversion of warrant liability                                                   |   |                         | — |   |                                                              |   | — |   |   |   | 123 |   |

| (7) | Short-term Investments and Fair Value of Financial Instruments |
|-----|----------------------------------------------------------------|

|   | · | Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                      |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |
|---------------------------|--------|----------------------------------------------------------------|---------|--------|----------------------------------------------|--------|---------|------------------------------------------|--------|--------|---------|--------|
|                      |   | Fair value measurement at reporting date using                 |    |
|                      |   | Quoted prices in active markets for identical assets (Level 1) |    |   | Significant other observable inputs(Level 2) |   |    | Significant unobservable inputs(Level 3) |   |   | Total   |   |
|                      |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |
| At December 31, 2011:     |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |
| Assets:                   |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |
| Cash and cash equivalents |   | $                                                              | 9,244   |   |                                         | $      | — |                                     |   | $      | — |   |   | $ | 9,244 |   |
| Short-term investments    |   |                                                           | 6,066   |   |                                         |   | — |                                     |   |   | — |   |   |   | 6,066 |   |
|                      |   | $                                                              | 15,310  |   |                                         | $      | — |                                     |   | $      | — |   |   | $ | 15,310 |   |
| Liabilities:              |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |   |   |   |   |
| Warrant liability    |   | $                                                              | — |   |                                         | $      | — |                                     |   | $      | 2,511   |   |   | $ | 2,511 |   |
|                      |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |   |   |   |   |
| At March 31, 2012:        |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |   |   |   |   |
| Assets:                   |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |   |   |   |   |
| Cash and cash equivalents |   | $                                                              | 7,349   |   |                                         | $      | — |                                     |   | $      | — |   |   | $ | 7,349 |   |
| Short-term investments    |   |                                                           | 1,517   |   |                                         |   | — |                                     |   |   | — |   |   |   | 1,517 |   |
|                      |   | $                                                              | 8,866   |   |                                         | $      | — |                                     |   | $      | — |   |   | $ | 8,866 |   |
| Liabilities:              |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |   |   |   |   |
| Warrant liability    |   | $                                                              | — |   |                                         | $      | — |                                     |   | $      | 3,034   |   |   | $ | 3,034 |   |
|                      |   |                                                           |    |   |                                         |   |    |                                     |   |   |    |   |   |   |   |   |

|                                                        |         | Warrant liability |
|-------------------------------------------------------------|--------------|-------------------|
|                                                        |         |              |   |   |
| Balance at December 31, 2011                           |         | $                 | 2,511 |   |
| Change in fair value of warrant liability    |    |              | 523 |   |
| Balance at March 31, 2012               |    | $                 | 3,034 |   |
|                                                        |         |              |   |   |

| (8) | Restructuring Expenses |
|-----|------------------------|

----

|                                           |         | Accrued Severance Benefits |
|------------------------------------------------|--------------|----------------------------|
|                                           |         |                       |   |   |
| Balance at December 31, 2011    |         | $                          | 1,544 |   |
| Net Charges paid                          |    |                       | (1,056 | ) |
| Balance at March 31, 2012       |    | $                          | 488 |   |

| (9) | Lease Liability |
|-----|-----------------|

|                             |   | Warehousespace |   | Office and manufacturingspace |   | Total  |
|----------------------------------|--------|----------------|--------|-------------------------------|--------|--------|
| Balance at December 31, 2011     |   | $              | 828    |                          |   | $      | 854 |   |   | $ | 1,682 |   |
| Charges utilized                 |   |           | (59    | )                             |   |   | (137 | ) |   |   | (196 | ) |
| Additional charges to operations |   |           | 23     |                          |   |   | 25 |   |   |   | 48 |   |
| Balance at March 31, 2012        |   |           | 792    |                          |   |   | 742 |   |   |   | 1,534 |   |
| Less current portion             |   |           | (227   | )                             |   |   | (494 | ) |   |   | (721 | ) |
|                             |   | $              | 565    |                          |   | $      | 248 |   |   | $ | 813 |   |

| (10) | Debt |
|------|------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |         |             |   |                |         |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------|--------|---------------------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |         | December 31,2011 |   | March 31, 2012 |
| Working Capital Note                                                                                     |    | $                | 5,000  |                |    | $      | 4,627 |   |
| Equipment and Supplemental Working Capital Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |    |             | 126    |                |    |   | 30 |   |
| Unamortized debt discount                                                                                |    |             | (139   | )                   |    |   | (122 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |    |             | 4,987  |                |    |   | 4,535 |   |
| Less current portion                                                                                     |    |             | (2,205 | )                   |    |   | (2,363 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |    | $                | 2,782  |                |    | $      | 2,172 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |    |             |   |                |         |   |   |   |

----

| (11) | Capital Structure |
|------|-------------------|

----

| (12) | Warrants |
|------|----------|

|                                                              |             |   |           |   |       |                                 |
|-------------------------------------------------------------------|------------------|--------|----------------|--------|------------|--------------------------------------|
|                                                              | Number of shares |   | Exercise price |   | Expiration |
| Equity–classified warrants                                  |             |   |           |   |       |                                 |
| Issued to vendors                                                 | 3,890            |   | $              | 2.32   |       | September 2015 through December 2016 |
| Issued pursuant to March 2011 refinancing of Working Capital Note | 70,671           |   | $              | 2.88   |       | March 2016                           |
| Issued to lenders                                                 | 64,409           |   | $              | 23.44  |       | August 2013 through December 2016    |
| Issued to lenders                                                 | 46,043           |   | $              | 26.39  |       | October 2015 through September 2019  |
|                                                              | 185,013          |   |           |   |       |                                 |
| Liability–classified warrants                               |             |   |           |   |       |                                 |
| Issued pursuant to March 2011 equity financing                    | 10,460,875       |   | $              | 2.88   |       | March 2016                           |
|                                                              | 10,645,888       |   |           |   |       |                                 |
|                                                              |             |   |           |   |       |                                 |

----

----

|                                                  |   |              |   |   |                                          |   |   |   |   |           |   |
|-------------------------------------------------------|--------|-------------------|--------|--------|-----------------------------------------------|--------|--------|--------|--------|----------------|--------|
|                                                  |   | Fair value as of: |   |   | Net cash settlement value as ofMarch 31, 2012 |   |   |   |
|                                                  |   | December 31, 2011 |   |   | March 31,2012                                 |   |   |   |
|                                                  |   |              |   |   |                                          |   |   |   |   |           |   |
| Calculated aggregate value             |   | $                 | 2,511  |   |                                          | $      | 3,034  |   |   | $              | 2,301  |  (1) |   |   |
| Exercise price per share of warrant    |   | $                 | 2.88   |   |                                          | $      | 2.88   |   |   | $              | 2.88   |   |   |   |
| Closing price per share of common stock               |   | $                 | 0.47   |   |                                          | $      | 0.56   |   |   | $              | 0.56   |   |   |   |
| Volatility                             |   |              | 93.8   | %      |                                          |   | 94.5   | %      |   |           | 100.0  | %(2) |   |   |
| Probability of Fundamental Transaction or Delisting   |   |              | 28.9   | %      |                                          |   | 28.8   | %      |   | Not applicable |   |   |   |
| Expected term (years)                       |   | Not applicable    |   |   | Not applicable                                |   |   |   | 3.9    |           |   |   |
| Risk-free interest rate                          |   |              | 0.7    | %      |                                          |   | 0.8    | %      |   |           | 0.8    | % |   |   |
| Dividend yield                                   |   | None              |   |   | None                                          |   |   | None   |   |           |   |
|                                                  |   |              |   |   |                                          |   |   |   |   |           |   |   |   |   |

|   | (1) | Represents the net cash settlement value of the warrant as of March 31, 2012, which value was calculated utilizing the Black-Scholes model specified in the warrant. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Represents the volatility assumption used to calculate the net cash settlement value as of March 31, 2012. |
|--------|-----|------------------------------------------------------------------------------------------------------------|

| (13) | Stock-Based Compensation |
|------|--------------------------|

----

|                                          |   | Number of shares |      |   | Weighted-average exercise price |   |   | Weighted-average remaining contractual term (in years) |   |   | Aggregate intrinsic value (in thousands) |   |
|-----------------------------------------------|--------|------------------|-----------|--------|---------------------------------|--------|--------|--------------------------------------------------------|--------|--------|------------------------------------------|--------|
| Outstanding at December 31, 2011              |   |             | 1,746,970 |   |                            | $      | 1.68   |                                                   |   |   | 8.9                                      |   |   | $ | 63 |   |
| Granted                                       |   |             | 734,751   |   |                            | $      | 0.60   |                                                   |   |   |                                     |   |   |   |   |   |
| Exercised                                     |   |             | (19,187   | )      |                            | $      | 0.44   |                                                   |   |   |                                     |   |   |   |   |   |
| Forfeited                                     |   |             | (54,971   | )      |                            | $      | 2.67   |                                                   |   |   |                                     |   |   |   |   |   |
| Outstanding at March 31, 2012                 |   |             | 2,407,563 |   |                            | $      | 1.34   |                                                   |   |   | 9.0                                      |   |   | $ | 151 |   |
|                                          |   |             |      |   |                            |   |   |                                                   |   |   |                                     |   |   |   |   |   |
| Vested and expected to vest at March 31, 2012 |   |             | 2,209,632 |   |                            | $      | 1.37   |                                                   |   |   | 9.0                                      |   |   | $ | 138 |   |
|                                          |   |             |      |   |                            |   |   |                                                   |   |   |                                     |   |   |   |   |   |
| Exercisable at March 31, 2012                 |   |             | 474,135   |   |                            | $      | 2.81   |                                                   |   |   | 7.3                                      |   |   | $ | 23 |   |
|                                          |   |             |      |   |                            |   |   |                                                   |   |   |                                     |   |   |   |   |   |

|                                                                                                                              | Number of shares |   | Weighted-average grant date fair value |   |
|-----------------------------------------------------------------------------------------------------------------------------------|------------------|--------|----------------------------------------|--------|
| Nonvested at December 31, 2011                                                                           | 139,779          |   |                                   | $      | 2.42 |   |
| Granted                                                                                                            | 678,584          |   |                                   | $      | 0.51 |   |
| Vested                                                                                                                  | (51,087          | )      |                                   | $      | 2.42 |   |
| Forfeited                     | (7,658           | )      |                                   | $      | 2.34 |   |
| Nonvested at March 31, 2012                                 | 759,618          |   |                                   | $      | 0.71 |   |
|                                                                                                                              |             |   |                                   |   |   |   |

----

| (14) | Commitments and Contingencies |
|------|-------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|--------|--------|
| 2012                                                                                                                  |         | $      | 747    |   |
| 2013                                                                                                                  |         |   | 1,016  |   |
| 2014                                                                                                                  |         |   | 1,040  |   |
| 2015                                                                                                                  |         |   | 1,063  |   |
| 2016                                                                                                                  |         |   | 276    |   |
| Total minimum lease payments                                                                                                                        |    | $      | 4,142  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |   |   |   |

----

Item 

----

----

|   | · | personnel related expenses, including salaries, benefits, travel and other related expenses including stock-based compensation; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | · | payments made to third-party contract research organizations for preclinical studies, investigative sites for clinical trials and consultants; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | costs associated with regulatory filings and the advancement of our product candidates through preclinical studies and clinical trials; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | laboratory and other supplies; |
|--------|--------|--------------------------------|

|   | · | manufacturing development costs; and |
|--------|--------|--------------------------------------|

|   | · | facility maintenance. |
|--------|--------|-----------------------|

|                                                        |   |                        |   |   |   |    |   |   |   |
|-------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|---------|--------|--------|--------|
|                                                        |   | Three months endedMarch 31, |   |
|                                                        |   | 2011                        |   |   | 2012   |    |   | Change |   |
| Third-party direct program expenses:                        |   |                        |   |   |   |    |   |   |   |
| Urologic                                     |   | $                           | 278    |   |   | $  | 171    |   |   | $  | (107 | ) |
| Renal                                             |   |                        | 464    |   |   |    | 406    |   |   |   | (58 | ) |
| Total third-party direct program expenses    |   |                        | 742    |   |   |    | 577    |   |   |   | (165 | ) |
| Other research and development expense            |   |                        | 2,603  |   |   |    | 2,117  |   |   |   | (486 | ) |
| Total research and development expense                 |   | $                           | 3,345  |   |   | $  | 2,694  |   |   | $  | (651 | ) |

----

|   | · | the number of sites included in the trials; |
|--------|--------|---------------------------------------------|

|   | · | the length of time required to enroll suitable patients; |
|--------|--------|----------------------------------------------------------|

|   | · | the number of patients that participate in the trials; |
|--------|--------|--------------------------------------------------------|

|   | · | the duration of patient follow-up; |
|--------|--------|------------------------------------|

|   | · | the development stage of the product candidate; and |
|--------|--------|-----------------------------------------------------|

|   | · | the efficacy and safety profile of the product candidate. |
|--------|--------|-----------------------------------------------------------|

|                                                                         |   |                        |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                         |   | Three months endedMarch 31, |   |
|                                                                         |   | 2011                        |   |   | 2012   |   |   | Change |   |
| Compensation and related expense               |   | $                           | 1,808  |   |   | $      | 1,191  |   |   | $ | (617 | ) |
| External services – direct third parties      |   |                        | 742    |   |   |   | 577    |   |   |   | (165 | ) |
| External services – other                          |   |                        | 68     |   |   |   | 216    |   |   |   | 148 |   |
| Research materials and related expense                        |   |                        | 279    |   |   |   | 315    |   |   |   | 36 |   |
| Facilities and related expense                      |   |                        | 448    |   |   |   | 395    |   |   |   | (53 | ) |
| Total research and development expense                        |   | $                           | 3,345  |   |   | $      | 2,694  |   |   | $ | (651 | ) |

----

|                                                         |   |                        |   |   |   |   |   |   |         |   |   |   |
|--------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------------|--------|--------|--------|
|                                                         |   | Three months endedMarch 31, |
|                                                         |   | 2011                        |   | 2012   |   | Change |
| Compensation and related expense         |   | $                           | 983    |   |   | $      | 629    |   |    | $      | (354   | )      |
| Professional fees                             |   |                        | 630    |   |   |   | 551    |   |    |   | (79    | )      |
| Facilities and related expense      |   |                        | 93     |   |   |   | 134    |   |    |   | 41     |   |
| Insurance, travel and other expenses               |   |                        | 70     |   |   |   | 67     |   |    |   | (3     | )      |
| Total general and administrative expense      |   | $                           | 1,776  |   |   | $      | 1,381  |   |    | $      | (395   | )      |

----

| Issue                                           |   | Year   |            | Number of Shares |       |      | Net Proceeds(in thousands) (1) |   |
|-------------------------------------------------|--------|--------|-----------------|------------------|------------|-----------|-------------------------------------|--------|
| Series A Redeemable Convertible Preferred Stock |   |   | 2004, 2005 |             | 1,668,311  |  (2) |                                | $      | 38,910 |   |
| Series B Redeemable Convertible Preferred Stock |   |   | 2006            |             | 1,906,009  |  (2) |                                |   | 50,040 |   |
| Series C Redeemable Convertible Preferred Stock |   |   | 2007, 2008      |             | 2,077,635  |  (2) |                                |   | 54,571 |   |
| Initial Public Offering                         |   |   | 2010            |             | 6,000,000  |      |                                |   | 25,721 |   |
| Private Placement                               |   |   | 2011            |             | 11,079,250 |      |                                |   | 28,941 |   |
|                                            |   |   |            |             | 22,731,205 |      |                                | $      | 198,183 |   |

| (1) | Net proceeds represent gross proceeds received net of transaction costs associated with each equity offering. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (2) | Number of shares represents the number of shares of common stock into which each series of preferred stock converted at the time of our initial public offering. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   |                         |   |   |   |   |   |   |   |   |    |   |
|--------------------------------------------------|--------|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
|                                             |   | Three months ended March 31, |
|                                             |   | 2011                         |   | 2012   |   | Change |
| Statement of Cash Flows Data:                    |   |                         |   |   |   |   |   |   |   |   |    |   |
| Total cash provided by (used in):                |   |                         |   |   |   |   |   |   |   |   |    |   |
| Operating activities                             |   | $                            | (6,835 | )      |   | $      | (5,974 | )      |   | $      | 861     |   |
| Investing activities                             |   |                         | (48    | )      |   |   | 4,545  |   |   |   | 4,593   |   |
| Financing activities                             |   |                         | 26,389 |   |   |   | (466   | )      |   |   | (26,855 | )      |
| Increase (decrease) in cash and cash equivalents |   | $                            | 19,506 |   |   | $      | (1,895 | )      |   | $      | (21,401 | )      |

----

Item 

Item 

----

Item 

Item 

Item 

| Period                                     |   | Total Number of Shares Purchased |    |   | Average Price Paid per Share |   |
|--------------------------------------------|--------|----------------------------------|---------|--------|------------------------------|--------|
| January 1, 2012 – January 31, 2012   |   |                             | — |   |                         | $      | — |   |
| February 1, 2012 – February 29, 2012 |   |                             | 8,706   |   |                         |   | 0.61 |   |
| March 1, 2012 – March 31, 2012       |   |                             | — |   |                         |   | — |   |
| Total                                      |   |                             | 8,706   |   |                         | $      | 0.61 |   |

Item 

Item 

Item 

----

Item 

| Exhibit Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.1           |   | Amended and Restated Management Severance Plan (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on March 20, 2012).#                                                                                                                                                                                                                                                                                                                                                                                                        |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.2           |   | Tengion, Inc. Amended and Restated Non-Employee Director Compensation Policy (incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q filed on May 10, 2012).#                                                                                                                                                                                                                                                                                                                                                                              |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 31.1           |   | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 31.2           |   | Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 32.1           |   | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 32.2           |   | Certification of Principal and Financial Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 101            |   | The following materials for the quarter ended March 31, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) the  Balance Sheets, (ii)  Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit), (iii) the  Statements of Operations, (iv) the  Statements of Cash Flows, and (v) Notes to  Financial Statements. Such materials were previously filed or furnished on Registrant's Quarterly Report on Form 10-Q filed on May 10, 2012.** |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

|   | ** | Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 are deemed not filed as part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

SIGNATURES

|                              |   | TENGION, INC. |
|-----------------------------------|--------|---------------|
|                              |   |          |   |   |
|                              |   |          |   |   |
| Date:  February 8, 2013 |   | By:           | /s/ John L. Miclot |
|                              |   |          |   | John L. MiclotPresident and Chief Executive Officer(Principal Executive Officer) |
|                              |   |          |   |   |
|                              |   |          |   |   |
| Date:  February 8, 2013 |   | By:           | /s/ A. Brian Davis |
|                              |   |          |   | A. Brian DavisChief Financial Officer and Vice President, Finance(Principal Financial and Accounting Officer) |
|                              |   |          |   |   |

----