England-based Cortecs International Ltd. has raised 1.63 million inAustralia through a tax-driven financing mechanism set up by theAustralian government to promote technological research anddevelopment activities.

Jonathan Pockson, Cortecs' financial director, said the funds,generated through investments in a research and developmentsyndication, represent the second round of such financing byCortecs, of Isleworth, England. The company's first Australianresearch and development syndicate was established Dec. 1. It raised900,000 to support development of Flustat, an oral influenzavaccine.

The second syndication, Pockson said, will be used primarily to funddevelopment of oral vaccines for candida vaginitis and forpseudomonas infection in patients with respiratory diseases, such ascystic fibrosis and chronic bronchitis.

The vaccine for pseudomonas infection, called Pseudostat,completed Phase I trials and Phase II studies are expected to begin inearly 1995. The candida vaginitis vaccine is in preclinical trials.

Cortecs' subsidiary, AIMI, which is associated with the University ofNew Castle near Sydney, Australia, will conduct the researchoperations financed by the syndicate.

Pockson said the syndication, which must be approved by theAustralian government, is a financing vehicle that offers tax benefitsfor Cortecs and the Australian companies that invest in it. In returnfor the funding, the syndicate also receives royalties on productsales. _ Charles Craig

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