Aviron Inc., which is focusing on vaccine development,boosted its cash position with $22 million in privatefinancing from a group of investors led by the start-upcompany's South Korea-based corporate partner, Sang-A.

With the new funding, the Burlingame, Calif.-based firmhas raised $38 million since it was founded three yearsago.

Aviron's lead product, an influenza vaccine, began PhaseI/II trials this week in children and adults. The companyis collaborating on the studies with the National Institutesof Health (NIH). Sang-A, a subsidiary of the HanboGroup, has rights to manufacture the vaccine and sell it inKorea.

In addition to Sang-A, the other lead investor for therecent private financing was Switzerland-based BBBiotech. Aviron's biggest shareholder is InstitutionalVenture Partners, of Menlo Park, Calif.

Aviron's vaccine is derived from a cold-adapted,modified living influenza virus, which was introduced inthe 1960s and tested in NIH-sponsored clinical trials.Wyeth-Ayerst Laboratories, of King of Prussia, Pa., asubsidiary of Madison, N.J.-based American HomeProducts, developed the vaccine from 1989 through 1993,but discontinued the program.

Aviron officials said the vaccine, which already has beenstudied in 7,000 people, has proved safe and effective.

Vera Kallmeyer, head of corporate development, said theadvantages of the live flu virus, which has been modifiedto make it non-virulent, are its delivery in a nasal sprayand its ability to generate antibody protection in the bloodstream and the nasal passages, which is where the flunormally infects its victims.

Current vaccines, which are administered by injection, aremade from killed influenza viruses and stimulateantibodies in the blood.

Kallmeyer said Aviron's recombinant version of the liveflu vaccine, targeted specifically for older adults, isexpected to begin evaluation in clinical trials next year.

The company also is developing vaccines for herpessimplex virus, cytomegalovirus, respiratory syncytialvirus and varicella zoster virus. _ Charles Craig

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