Another article in Washington Business, about a biomedical joint venture, misstated the amount of stock involved in the transaction. The correct amount is 500,000 shares.
Two local biotechnology firms have formed a joint venture to explore the development of a vaccine and diagnostic test for the deadly acquired immune deficiency syndrome (AIDS).
The new company, Viral Technology Inc., was created by Interleukin-2 Inc., of Alexandria, and Alpha 1 Biomedicals Inc., of the District, two companies probing the body's immune system for new ways to treat disease.
Interleukin-2 Inc. was founded in 1983 to develop a single product for which the company was named -- a human protein that regulates and stimulates certain activities of the body's immune system. The publicly held firm is one of several in the country pursuing the product as a possible treatment for some cancers and other diseases.
Alpha 1 was founded in 1982 by Dr. Allan Goldenstein, chief of the biochemistry department at George Washington University Medical School, to develop products and processes that may be useful in the prevention, diagnosis and treatment of immune deficiencies. The privately held company also manufactures and sells peptides, specific amino acid chains, to researchers.
Alpha has developed a technology that appears to be effective in preventing the replication of the AIDS virus. Under the joint venture agreement, Interleukin-2 Inc. bought a 50 percent interest in that technology for $200,000 and 500 shares of its common stock.
To form the new venture, the two parent companies each contributed their 50 percent share of the technology and start-up funds.