Allied Healthcare invests $1m into Coridon on back of herpes vaccine

Allied Healthcare (ASX:AHZ) has invested an extra $1 million in Coridon, as the company progresses towards a key human trial of its herpes vaccine.

Allied Healthcare has made the investment in a capital raising, increasing its stake in Coridon to 44.4% from around 37%.

Coridon was founded in 2000 by Professor Ian Frazer to develop and commercialise patented technology for improving immune responses to DNA vaccines.

This technology was developed at the University of Queensland and licensed to Coridon by UniQuest.

The company has developed an experimental DNA vaccine for herpes that has been shown to be 100% effective in protecting animals from the virus in pre-clinical trials. The vaccine is due to enter human trials this year.

Allied Healthcare group managing director Lee Rodne said the investment was prompted by Coridon's recent progress towards these trials.

“Our investment is timed as Coridon progresses its development programs,” he said. “We will continue to increase this holding as Coridon pushes towards its Phase I trial and beyond.”

Allied Healthcare is entitled to further lift its investment in Coridon at the same terms established during its initial investment in 2009.

Last week, Coridon signed a licensing agreement with Nature Technology Corporation using the antibiotic-free selection vector technology used in the vaccine.

In February, the company revealed it is also working on a next-generation vaccine and treatment for HPV.