VaxGen Inc. –

BRISBANE, Calif. – VaxGen Inc., a biopharmaceutical company developing a vaccine against the HIV virus, went public June 29, offering 3.1 million shares at $13 apiece. The company’s stock priced at the low end of its $13 to $15 filing range.

Prudential Securities and Punk, Ziegel & Co. underwrote the initial public offering, which left 10.79 million shares outstanding.

There were no selling shareholders. Vulcan Ventures Inc. and Genentech Inc. are venture backers.

VaxGen, which spun out of Genentech in November 1995, currently is conducting Phase III clinical trials in North America and Thailand for AIDSVAX, a vaccine that could prevent the transmission of HIV. The company is the first to advance an HIV vaccine to Phase III trials. Genentech licensed the technology necessary for the development and commercialization of AIDSVAX.

The $36.5 million in proceeds generated by the IPO will be used to complete clinical trials, develop and operate laboratory and data management systems, obtain regulatory approvals and other general corporate purposes.

The company has never been profitable, losing $9.2 million in 1998 and $3.1 million in 1997.

William Young, chief operating officer of Genentech, joined the company’s board of directors in November 1995. Ruth Kunath, manager of the Vulcan venture Biotechnology Portfolio, joined the board following the company’s IPO.


VaxGen – Selected Financial

(in thousands, except per share data)

Period from November 27, 1995

(inception) Year Ended December 31, Three Months Ended March 31,

to December 31, 1995 1996 1997 1998 1998 1999

Net loss -30 -2,082 -3,060 -9,163 -857 -3,760

Net loss per share – -1.90 -0.60 -1.48 -0.14 -0.49