Viragen Inc. said Friday that it is negotiating for a possibly $1.5million equity investment in exchange for a 49 percentownership of the company.

Viragen of Hialeah, Fla., is in talks with Florida-based CytoferonCorp., which would take over management control of Viragen ifthe financing succeeds. Viragen said it would use the additionalfunding to restart production of its Alpha Leukoferon, an alphainterferon, for treating multiple sclerosis and AIDS-relatedcancer. It has been maintaining minimal operations because ofseverely strained fiances.

"While there can be no assurance that a final agreement will besuccessfully reached, negotiations have been progressingsteadily and should be successfully concluded within the nextfew weeks," according to Viragen.

Viragen said last April that it terminated merger negotiationswith Cellular Dynamics Inc., a Florida-based developer ofdiagnostic instruments and reagents.

Founded in 1980, Viragen has over its history worked on aradioimmunossay for breast cancer, thermostable enyzmes andlymphokine analogs.

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