HIV treatment project gets $7m from market

By KEVIN TAYLOR

Auckland biotech start-up Virionyx has raised nearly $7 million in a share offer to pay for further efforts to develop a potential treatment for HIV.

Virionyx's share offer closed yesterday and failed to meet its target of $8.75 million.

But the company was still pleased with the response, which was particularly strong from the South Island.

Chief business officer Dr John Chang said the money would be used to pay for phase-two trials at Harvard Medical School for a drug based on an extract from goats which it believes is a potential treatment for human immuno-deficiency virus, or HIV.

The money would also pay for a research laboratory in Auckland and production of the material for the drug trials.

"It has been very, very good. We are nudging very close to $7 million."

The directors set a minimum target of $2 million.

Chang said the company would have a better idea of the exact uptake of the share offer in a week's time.

One of the cornerstone investors is Takapuna-based Global Partners (Oceania), which was named in the company's July prospectus as undertaking to invest $2 million by August 30.