VaxGen raises $51.3M via sales of Celltrion interest

California, USA-based VaxGen, which has had a $877.5 million supply contract for anthrax vaccine terminated by the Department of Health and Human Services, has realized gross proceeds of $51.3 million from the sale of most of its remaining common stock in Celltrion Inc. The company expects to receive approximately $49.0 million in net proceeds from the transaction.

VaxGen estimates that it had cash, cash equivalents and short-term investments of $96.6 million as of December 31, 2006. The unaudited figure includes the net proceeds from the Celltrion stock sale and the company's cash reserves prior to the transaction.

The Celltrion shares were purchased by three related entities - Nexol Co, Nexol Biotech Co and Nexol Venture Capital Co - which together represent Celltrion's largest shareholder. The stock was acquired through the exercise of an exclusive option that VaxGen granted to the Nexol entities in June last year.