Virus Research Institute Inc., which focuses on vaccine deliverysystems and vaccine development, raised about $28 million in grossproceeds from an initial public offering (IPO) of 2.3 million shares.

The IPO was priced at $12 per share, which was the amountprojected when the Cambridge, Mass., company registered for theoffering.

The stock (NASDAQ:VRII) made its debut last Thursday and closedat $12.06. Virus Research ended Monday at $11.75.

With financing from the IPO, the company said it will have enoughmoney to fund operations and programs through 1997. VirusResearch reported a 1995 net loss of $6.3 million. It has 8.75 millionshares outstanding.

Virus Research's most advanced delivery system is a syntheticderivative of the polymer, polyphospazene. The product, calledAdjumer, is designed to boost a vaccine's ability to trigger animmune response.

An Adjumer-formulated influenza vaccine is expected to beevaluated in a clinical trial this year in France under a collaborationwith Pasteur Merieux Serums & Vaccins S.A., of Lyon, France.

The French vaccine maker, with an initial $3 million equity purchase,entered a collaboration with Virus Research in 1994.

Virus Research has two other vaccine delivery systems indevelopment, including its VibrioVec delivery product, which uses arecombinant bacterial vector for oral transport of vaccines to thegastrointestinal tract. VibrioVec is the focus of two collaborationswith CSL Ltd., of Victoria, Australia, and with a joint venturepartnership set up by Pasteur Merieux and OraVax Inc., ofCambridge, Mass.

Virus Research also is developing its own vaccines for genital herpesand rotavirus infection, which causes gastrointestinal disease ininfants. The company completed a Phase I study in January 1996with an oral vaccine for rotavirus and expects to begin a Phase I/IIdosing trial this year.

In a collaboration with SmithKline Beecham plc, of London, VirusResearch is identifying bacterial genes to discover new drug targets.

Virus Research also is working with Chiron Corp., of Emeryville,Calif., for development of intracellular immunizing agents for HIVand other infectious diseases. n

-- Charles Craig

(c) 1997 American Health Consultants. All rights reserved.