A BioWorld Today Staff Report

VaxGen, of Brisbane, California, a developer of vaccines designed to protect against HIV, says it has accomplished one big milestone and - with a $25 million investment from Microsoft co-founder Paul G. Allen - is set to tackle more. The new funding was made, specifically, by Vulcan Ventures of Bellevue, Washington, the investment organization chaired by Allen, and consists of 2,174,000 shares of common stock at $11.50 per share.

The funds will be used to expand VaxGen's program of HIV inoculation - thus far primarily in North America - to other countries around the world, according to VaxGen Chairman and CEO Dr. Robert Nowinski.

The company said on Tuesday that it has inoculated more than 5,000 volunteers, completing enrollment in the U.S. portion of its North American trial of AIDSVAX, a vaccine designed to prevent infection by HIV. The "next hurdles," according to Nowinski, will include "development of vaccines against the HIV strains that are ravaging the other parts of the world. We are delighted that [Allen] is making such a substantial commitment to this mission."

The 5,000 inoculations constitute the first-ever Phase III clinical trial of a preventive HIV vaccine, according to VaxGen. They were given at 56 clinics in the U.S. and at one clinic each in Puerto Rico and the Netherlands. The company said it will continue enrollment at Canadian clinics through October, bringing the total inoculations to 5,400.

The trial of a separate formulation of AIDSVAX is being conducted in Thailand, the company said, and will involve 2,500 volunteers.

VaxGen said it will use the new financing from Vulcan to support "a comprehensive program to develop AIDSVAX into formulations which prevent infection by all major strains of HIV, including those found in China, India, Africa and South America. The company will then develop a single vaccine formulation for general use."

Ruth Kunath, director of Vulcan Ventures Biotechnology Portfolio, said Vulcan was attempting to "jumpstart the development of a worldwide vaccine for HIV. Only a vaccine can bring an end to this epidemic, and that is possible only when companies have the determination and resolve to move from research into human clinical trials, as VaxGen has."