when a ceo resigns,who is also president, it is obvious that he has lost faith in the company, and sees dark clouds on the horizon. if the company's future was bright, he would not have resigned. apparently the people on wall street feel the same way because TNGN stock is getting decimated.
you're right and this is the only realistic interpretation.
another possibility is the ceo screwed up so badly that he had to be fired, but the board allowed him to save face and resign instead. either way, the prospects for tengion are quite dim. the next financing round will be highly dilutive with significant warrant coverage, some kind of dividend preferred, debt convert etc.