By Mary Welch

Argonex Inc. raised $9.6 million in a private financing round to expand its antigen discovery programs and advance the development of its lead immunotherapeutic vaccine.

"We were hoping for a few hundred thousand more," said Mark Braughler, the company's president and newly named CEO. "It's always nice to have a round number, but trying to actually squeeze out the last bit to reach $10 million is hard."

Advent Capital, of London, was the lead investor, upping its participation in the company's second financing round to reach an 11 percent ownership position. Healthcare Ventures LLC, of Cambridge, Mass., participated in both rounds of financing. New to the company's list of investors is Washington-based Riggs Capital Partners.

"Riggs often invests with Advent," said Braughler. "But they were also attracted to us because of our revenue stream that we have with Upstate Biotechnology, our cell signaling reagents supply business. We sell annually more than 1,000 cell signaling reagents to academic, government and industrial labs. Those revenues help offset our burn rate."

Speaking of burn rate, Braughler says this round of financing should be the company's last until the company becomes cash-positive. "With the anticipated growth of Upstate as well as capital from projected partnerships, we should not need another round of financing," he said. The company is in serious discussions with several possible development partners, and at least one announcement should be made within the next few weeks, he said.

The company's antigen discovery technology focuses on two disease areas - oncology and infectious diseases. In the oncology area, the program is centering on ovarian, lung, prostate and colorectal indications. The company already has had success in melanoma. The infectious disease antigen program currently is concentrating on Chlamydia and M. tuberculosis.

Argonex, based in Charlottesville, Va., has four clinical trials in process using four melanoma antigens. These antigens provide the basis for immunotherapeutic vaccines. The company's lead product is in Phase II trials for patients with advanced-stage melanoma. The vaccine uses four melanoma peptide antigens derived from the gp 100 and tyrosinase proteins, which are administered using either dendritic cells or by injection. The company expects to start clinical trials with its first infectious disease vaccine next year.

Founded in 1994, the company uses mass spectrometry with immunology, in a technology called Direct Identification of Relevant Epitopes for Clinical Therapeutics (DIRECT). The system zeroes in on antigens that specifically trigger T-cell responses against diseased cells.

The company raised $7.5 million in its first round of private financing in June 1998.

In addition to the financing, the company said William Battle retired as chairman but will remain on the board of directors. Sheridan Snyder was named chairman. Braughler assumed Snyder's title as CEO in addition to his previous duties as president.