Auckland biotech company continues with AIDS drug trials

By NZPA

Thursday 4th July 2002

An Auckland-based biotechnology company developing an HIV-Aids drug has received a $2 million shot in the arm from an unnamed investor.

Virionyx chairman Peter Sullivan said the investor, who signed off on the sum today, was now undertaking due diligence and retained the right to contribute further funds.

The investor could possibly meet the capital raising requirements of Virionyx through to commercialisation, Mr Sullivan said.

Virionyx could now immediately kick off an expansion programme.

Biotechnology companies struggled to find funds to get through the trials of their products, when they had no cashflow, he said.

The company was hoping to commercialise its HIV-Aids drug HRG214 in 2005, an "incredibly short time" for the development of a new drug, he said.

Virionyx has completed initial clinical trials of HRG214 in the United States on 18 HIV-positive volunteers. The results will be presented at the International Aids conference in Barcelona on July 9.

HRG214 has been cleared for further, multi-dose trials, with 40 HIV patients at Harvard Medical School to receive twice-weekly injections for eight months.

The drug is an antibody preparation that targets several specific regions of the HIV.

The company had spent $US8.2 million ($NZ17 million) on developing HRG214 so far, in comparison with the average cost of $US50 million cost reaching the trials stage of a new drug, Virionyx said.

Virionyx has been funded by both private and state contributions, including grants totalling $500,000 from state agencies and government assistance for a new $3 million laboratory unveiled in Auckland today.

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