VaxGen Inoculates 5,000 Volunteers,(12 Oct 1999), in U.S. Trial of HIV
Vaccine; Investment by Paul Allen Raises $25 Million for Global
Vaccine Effort
Brisbane, CA - October 12, 1999 - VaxGen, Inc. (Nasdaq:VXGN)
today announced that it has inoculated more than 5,000
volunteers, completing enrollment in the United States
portion of the North American trial of AIDSVAX®, a vaccine
designed to prevent infection by HIV. Additionally, the
company announced it has completed a private placement of
common stock resulting in proceeds of $25 million to the
company, enabling the company to expand its vaccine research
to develop HIV vaccines for worldwide eradication of AIDS.
The securities were sold to Vulcan Ventures, Inc., the
investment organization of Paul G. Allen, chairman of
Vulcan and co-founder of Microsoft Corp.
"Now that we have reached this milestone in our North
American trial, it is time to tackle the next
hurdles," said Dr. Robert C. Nowinski, chairman
and CEO of VaxGen. "The investment by Paul Allen
enables the company to begin the development of
vaccines against the HIV strains that are ravaging
the other parts of the world. We are delighted that
he is making such a substantial commitment to this
mission."
The inoculation of more than 5,000 volunteers in the study,
the first-ever Phase III clinical trial of a preventive
HIV vaccine, took place at 56 clinics in the U.S. and at
one clinic each in Puerto Rico and the Netherlands.
Enrollment of volunteers at three Canadian clinics will
continue through October, resulting in a total of 5,400
volunteers. The company is also conducting a Phase III
trial in Thailand of a separate formulation of AIDSVAX.
The Thai trial is being conducted at 17 clinics and will
involve 2,500 volunteers.
The additional financing will enable VaxGen to embark on
a comprehensive program to develop AIDSVAX into
formulations which prevent infection by all major strains
of HIV, including those found in China, India, Africa and
South America. The company will then develop a single
vaccine formulation for general use.
"We are making this investment to jumpstart the
development of a worldwide vaccine for HIV," said Ruth B.
Kunath, director of Vulcan Ventures Biotechnology Portfolio,
Paul Allen's investment group. "Only a vaccine can bring an
end to this epidemic, and that is possible only when
companies have the determination and resolve to move from
research into human clinical trials, as VaxGen has."
The private placement by Paul Allen consists of 2,174,000
shares of common stock at $11.50 per share, resulting in
proceeds of $25 million.
To date, no vaccine to prevent HIV infection, other than
AIDSVAX, has received FDA approval for testing in Phase
III clinical trials.
VaxGen, Inc., headquartered in Brisbane, CA, is developing
preventive vaccines to eradicate AIDS.
Note: This news release contains "forward-looking
statements" with the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking
statements are subject to known and unknown risks,
uncertainties or other factors that may cause the Company's
actual results to be materially different from historical
results, expressed or implied by such forward-looking
statements. Factors that might cause such a difference
include, but are not limited to, uncertainties related to
the progress and costs of our Phase III clinical trials, the
progress of other internal research and development projects,
the establishment of collaborative arrangements with
governmental agencies, the receipt of research grants, and the
timing of certain expenses. Reference should be made to the
Company's registration statement on Form S-1, filed with the
Securities and Exchange Commission for a more detailed
description of such factors discussed in the "Risk Factors" and
"Business" sections. Readers are cautioned not to place undue
reliance on these forward-looking statements that speak only as
of the date of this release. VaxGen undertakes no obligation to
update publicly any forward-looking statements to reflect new
information, events, or circumstances after the date of this
release or to reflect the occurrence of anticipated events.
# # #
Contact:
Nicole Lynch
VaxGen, Inc.
(650)624-1065
Donna K.H. Walters
Sitrick And Company, Inc.
(310)788-2850 |
