BIOTECH Avexa is hoping to raise up to $60 million to take its HIV-Aids drug Apricitabine to commercial production.

Avexa went into a trading halt on Friday pending yesterday's announcement of the outcome of phase IIb trials of the drug in patients in Australia, the United States and Argentina.

The stock is expected to re-list tomorrow following the completion of what is believed to have been a $15 million share placement, the first stage of a $60 million capital raising, with US institutions buying the stock at a discounted price of 53 a share.

Existing shareholders are expected to be offered further shares in a forthcoming rights issue, which will be fully underwritten ABN Amro Morgans.

The money raised will fund the phase III trials over a two-year period.

Avexa last traded at 68 a share before the stock entered the trading halt.

But after news leaked last week of successful US trials, orders have been placed for the stock for as much as $1.16 a share.

Dr Julian Chick, chief executive of Avexa, said yesterday that the trials, which involved 47 patients had been highly successful.

Apricitabine will now advance to phase III testing, the final stage before beginning commercial production.

Company sources said last night that every HIV-Aids drug which had passed phase IIb testing had reached commercial production.

In its statement to the stock exchange yesterday, Avexa said patients who took part in the phase IIb trial that received Apricitabine achieved on average an 85 per cent reduction in the level of the viral load in the blood after 21 days treatment.

Patients with the highest degree of drug resistance still achieved a significant benefit from treatment, said Dr Chick, adding that the "fantastic result" would allow the company to progress to phase III trials and towards commercialisation.