VaxGen Raises USD 79M Through Sale of Interest in Overseas Biopharmaceutical Manufacturing Facility
VaxGen, Inc. announced that it has realized gross proceeds of approximately USD 79.0 million through the sale of a portion of its common shares in Celltrion, Inc. VaxGen also granted the purchasers an exclusive option to acquire the remainder of its Celltrion shares by December 31, 2006.
If the option is exercised, and based on today's currency exchange rate, VaxGen expects to raise approximately USD 50.3 million in additional gross proceeds by December. The company believes that the proceeds from the current sale and the exercise of the option plus its existing cash would provide sufficient capital to fund its operations through 2007. However, this estimate may vary depending on VaxGen's existing and potential future product development initiatives and the date by which the company begins to deliver its anthrax vaccine candidate to the U.S. government and thereby generate product revenue and net income.
"This transaction provides substantial working capital to VaxGen without dilution to our shareholders," said Lance K. Gordon, Ph.D., VaxGen's President and Chief Executive Officer. "We believe that Celltrion has a bright future as one of the world's emerging leaders in its field, but we concluded that selling our shares represented the best means for VaxGen to ensure that it has the operating capital to reach its core objectives."
The shares were purchased by three related entities -- Nexol Co., Ltd., Nexol Biotech Co., Ltd., and Nexol Venture Capital Co., Ltd. -- which together represent Celltrion's largest shareholder.
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