VaxGen to sell portion of interest in Celltrion for $15 million

By Jennifer Chiou

New York, Sept. 21 - VaxGen Inc. said it entered into agreements to raise about $15 million through the sale of some of its Celltrion, Inc. shares to a group of South Korean investors.

Following the transaction, VaxGen's stake in Celltrion will decrease to 22.2% from 26.9%.

"This transaction provides additional capital to VaxGen which, combined with our existing financial resources, will enable us to continue funding progress on our anthrax vaccine and other programs," VaxGen president and chief executive officer Lance K. Gordon said in a news release.

"It is non-dilutive to our shareholders and provides VaxGen with cash at a critical point in our growth."

VaxGen expects to receive about $10 million in September and $5 million by the end of November.

As of Sept. 19, VaxGen has $30.2 million in cash, cash equivalents and U.S. government receivables.

Based in Brisbane, Calif., VaxGen is a biopharmaceutical company that develops and sells biologic products for the prevention and treatment of human infectious diseases, including anthrax, smallpox and Meningitis B.

Celltrion, which is based in South Korea, is a biopharmaceutical contract manufacturer of therapeutic monoclonal antibodies and recombinant proteins.

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