Interferon Sciences Inc. said Thursday that it has receivedabout $3 million through the exercise of warrants to purchase432,600 shares of common stock.

The warrants were exercisable at $6.85 per share. The stock(NASDAQ:IFSC) closed Thursday at $8.38, down 13 cents.

The proceeds, together with $10 million raised in a stockoffering last October, will be used to develop topical and low-dose oral formulations of natural-source alpha interferon. IFSCsells Alferon N injection to treat refractory or recurringexternal genital warts.

The New Brunswick, N.J., company originally issued thewarrants in August 1990 to its parent, National PatentDevelopment Corp., in exchange for a reduction of $373,000 ofdebt owed to National Patent. National Patent, which owns 53percent of IFSC, subsequently used the warrants in anexchange offer for its Swiss franc-denominated debt.

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