Vaxgen placement raises $20 million

US firm Vaxgen has raised $20 million through a private placement ofconvertible preferred stock, the proceeds of which will be used to help the company prepare its HIV/AIDS vaccine for large-scale production if it proves successful in ongoing Phase III clinical trials. UBS Warburg acted as the placement agent for the transaction.

Donald Francis, VaxGen's president, said that with Phase III trials well underway, "our focus is now widening to include planning for the successful commercialization of our vaccine if it proves effective," adding that the financing will "help us build-out our laboratory and prepare the vaccine so it can be made in larger quantities and at lower costs." The Phase III trials are taking place in North America, Europe and Thailand and an interim analysis of the studies is scheduled for November.