Avant in position to build vaccine pipeline with current cash on hand, recent milestone payment

By Jennifer Lanning Drey

Portland, Ore., Nov. 1 - Avant Immunotherapeutics, Inc.'s current cash on hand combined with a $40 million milestone payment received for the Rotarix launch in Europe puts the company in a strong position to build its vaccine franchise, Una Ryan, Avant's chief executive officer, said Wednesday during the company's quarterly earnings conference call.

"Avant's broad pipeline of programs and emerging portfolio of next generation oral vaccines, together with our state-of-the-art technologies and manufacturing facilities, offer exciting opportunities to build value in the near term, mid term and long term," Ryan said.

Avant reported cash and cash equivalents of $46.68 million at Sept. 30, compared with $23.42 million at Dec. 31, 2005, according to a company news release.

During the third quarter, Avant received a $750,000 Small Business Innovation Research grant to support further development of Ty800, its typhoid fever vaccine candidate. The drug is being tested by the National Institute of Allergy and Infectious Diseases at the National Institutes of Health, and Avant plans to begin conducting its own clinical trials of Ty800 in the first half of 2007, Ryan said.

Avant also plans to launch a phase 3 clinical trial in mid-2007 for its oral cholera vaccine, CholeraGarde, for the travelers market.

At the same time, the company will conduct additional studies with its partner, the International Vaccine Institute (IVI), which has received $21 million for a Cholera Vaccine Initiative.

The company expects to begin launching its own commercial vaccine products in 2009 or 2010, Ryan said.

Avant reported a net loss of $5.6 million, or $0.08 per share, for the third quarter, compared with a net loss of $4.5 million, or $0.06 per share, for the third quarter of 2005, company chief financial officer Avery W. Catlin said Wednesday.

The increase in net loss reflects a decrease in revenue combined with an increase in operating expense that was partly offset by an increase in investment income, Catlin said.

Avant is a vaccine development company based in Needham, Mass.

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