VaxGen sells overseas facility; raises $79 million

By Elaine Rigoli

Tampa, Fla., June 29 - VaxGen, Inc. has realized proceeds of about $79 million through the sale of a portion of its common shares in Celltrion, Inc. VaxGen also granted the purchasers an exclusive option to acquire the remainder of its Celltrion shares by Dec. 31.

If the option is exercised, and based on Thursday's currency exchange rate, VaxGen said it expects to raise $50.3 million in additional proceeds by December.

The company said the proceeds from the current sale and the exercise of the option plus its existing cash would provide sufficient capital to fund its operations through 2007.

However, this estimate may vary depending on VaxGen's existing and potential future product-development initiatives and the date by which the company begins to deliver its anthrax vaccine candidate to the U.S. government and thereby generate product revenue and net income.

VaxGen is a biopharmaceutical company based in Brisbane, Calif.

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