Oxigene Inc. raised $10 million in a private placement of more than1.6 million shares in Sweden and Monday also named the head ofthat nation's largest private hospital as the company's new presidentand CEO.

Bjorn Nordenvall, president of Sophiahemmet AB in Stockholm anda consultant to the Skandia Assurance Co., fills a post at Oxigene thathas been vacant for two years, said the company's chairman, RichardBrown.

Brown said that with the company's lead products in late stageclinical trials and its initial marketing efforts aimed at Sweden andEurope, Nordenvall has the experience and reputation to manageOxigene as it moves into commercializing the drugs.

Nordenvall also boosted his holdings in Oxigene in the privateplacement. He previously owned 120,000 shares.

By the end of this year, Brown said Oxigene expects to complete aPhase II/III trial with Sensamide, a chemotherapy enhancing drug forsquamous cell lung cancer, and begin another Phase III study withNeu-Sensamide, a second generation compound.

Oxigene is incorporated in Delaware, Brown has his offices in NewYork, but the company headquarters is in Lund, Sweden.

"We expect to get our first [product] approval in Europe," Brownsaid.

In the private financing, which was managed by Stockholm-basedCarnegie Fondkomission AB, 1.66 million shares were sold for $6per share. Oxigene now has 5 million shares outstanding and threeyears of cash, Brown said.

Sensamide is a high dose formulation of metoclopramide, which isused as an adjunct to radiation treatments and chemotherapy. Neu-Sensamide, Brown said, has shown in earlier studies that it not onlyenhances the effects of chemotherapy, but also prevents vomiting andnausea.

Oxigene's stock (NASDAQ:OXGN) was up 25 cents Monday toclose at $7. _ Charles Craig

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