'Aiea-based Hawaii Biotech yesterday said it has raised $7.8 million from local and Mainland investors to help with clinical trials of vaccine and anti-inflammatory drugs.

Hawaii Biotech is researching a variety of drugs, including vaccines for the West Nile virus and dengue fever.

The company, which eliminated 14 jobs, or 20 percent of its workforce in September, also said it would create a small, unspecified number of new jobs going forward.

"We certainly are looking at some additions now and no cuts," said David Watumull, president and chief executive of Hawaii Biotech.

In addition, Hawaii Biotech announced that two nationally known life science industry leaders will join the company's board of directors.

The new board members are: Frank Herringer, chairman and former chief executive for Transamerica Corp.; and Dick Foster, former leader of the healthcare practice at management consulting firm McKinsey & Co.

"I think it's a big step up for us with the board additions and the amount of money raised," Watumull said.

Hawaii Biotech Chairman Nick Mitsakos was the lead investor in the recently closed round of financing. The company also said board members William Richardson, Debra Guerin and Edwin Cadman have left the board.

The nearly $8 million in financing raised by Hawaii Biotech should last the company for another year or so, Watumull said. Overall, the privately held biopharmaceutical company has raised about $24 million since it was founded in 1982 by nine University of Hawai'i professors.

Reach Sean Hao at shao@honoluluadvertiser.com.