Avant accelerates receipt of $40 million milestone payment for Rotarix

By Lisa Kerner

Erie, Pa., March 15 - Avant Immunotherapeutics, Inc. said it has amended its agreement with an affiliate of Paul Royalty Fund II, LP to accelerate a $40 million milestone payment. The payment will be received on March 17 instead of on the first sale of Rotarix in the European Union, expected during the second quarter of 2006, according to a company news release.

Avant will receive additional milestone payments from Paul Royalty Fund of between $11 million and $9 million upon product launch in the United States.

Additionally, Avant can receive future Rotarix royalty revenues depending on its commercial success.

Rotarix is licensed by Avant to GlaxoSmithKline.

"We are pleased to be receiving this significant and non-dilutive capital infusion at this time to invest in development programs that we expect will return maximum shareholder value," president and chief executive officer Una S. Ryan said in the release.

"We will be using the proceeds to advance our clinical programs and to further develop Avant's production capabilities for oral vaccines to combat a wide range of bacterial threats."

Avant, based in Needham, Mass., discovers and develops innovative vaccines and therapeutics that harness the human immune system to prevent and treat disease.

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