Virax raises $3.7 million in placement

Virax (ASX: VHL) announced this week that it had raised AUD$3.7 million through a placement to institutional and professional investors.

"It's an important step for us -- as we move ahead we need to get more institutional representation," CEO Dr David Beames told Australian Biotechnology News.

He estimated that the funds would carry Virax through to the second half of 2005.

"It's about two-thirds of the funds we want to raise this year. [Raising] the balance of the proposed funding we would expect to contemplate later this year, when we have a better valuation," Beames said.

The funds will be used to support development programs for prostate cancer and hepatitis B, as well as general and production costs, he said.

Virax is also seeking non-equity funding from international government and foundation grants to support a larger Phase II trial for its HIV vaccine VIR201.

Burdett Buckeridge Young and Alchemy Corporate Advisors managed the placement, which did not require shareholder approval.