PHILADELPHIA, July 5 /PRNewswire/ -- Hemispherx Biopharma Inc. (Nasdaq:
HEMXU) announced today that it had closed a $6 million financing with a
single institutional investor in the form of a newly issued Series D
Convertible Preferred Stock.  The terms of the preferred stock call for the
issuance of the Company's common stock upon conversion at prices to be
determined at the time of conversion. 

The proceeds from the private placement will be used as additional working
capital, especially to expand drug inventory of the company's lead product,
Ampligen(R), which is being developed for the treatment of various chronic
viral diseases and immune disorders, including Chronic Fatigue and Immune
Dysfunction Syndrome ("CFIDS"). 

Recent data from the governmental agency, Centers for Disease Control ("CDC")
and an independent report from Harvard University, now suggest that between
500,000 to 2,500,000 Americans may presently suffer from CFIDS.  As a result
of nationwide epidemiologic surveys, the CDC moved CFIDS to its list of "top
priority new and reemerging infectious diseases" in May 1996.  Diseases on
this CDC list of high priority also include tuberculosis, lyme disease as
well as various other dreaded infectious diseases generally associated with
profound severity, debilitation and/or death for which there may be no
adequate medical treatment. 

At present, Hemispherx sources all of its drug raw materials from either
Pharmacia/Upjohn utilizing their facility based in Milwaukee, Wis., or from
South African Breweries, Ltd. ("SAB")/Bioclones Proprietary, utilizing
facilities based in Capetown, South Africa. Pharmacia/Upjohn holds a minority
equity position in Hemispherx and SAB/Bioclones is a Hemispherx licensee for
certain non-North American territories including, principally, the Southern
hemisphere regions. Hemispherx is a 24.9% equity holder in the Capetown
manufacturing facility.  At present, all drug product undergoes release
testing, the final step preparatory to building drug inventory for clinical
testing and/or commercial sales, at the Hemispherx facility in Rockville, Md.

Hemispherx holds a patent position consisting of more than 200 issued patents
which, together with approximately 200 additional patent applications under
development, form the global core of the Company's proprietary technology
estate.  In different regions of the world, the company and its partners are
actively developing the patented drug technology for various other disease
indications including hepatitis B, hepatitis C and HIV diseases. 

CO:  Hemispherx Biopharma Inc. 

ST:  Pennsylvania 

IN:  MTC 

SU: 

07/05/96 08:00 EDT