Filing Pursuant to Rule 424(b)(2)
                      Registration Statement No. 333-32306



                              PROSPECTUS SUPPLEMENT
                      (TO PROSPECTUS DATED MARCH 21, 2000)

                               1,666,667 shares

                                  Viragen, Inc.

                                  Common Stock

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         You should read this prospectus supplement and the related prospectus
carefully before you invest. Both documents contain information you should
consider when making your investment decision.

         INVESTING IN VIRAGEN, INC. COMMON STOCK INVOLVES A HIGH DEGREE OF RISK.
SEE "RISK FACTORS" BEGINNING ON PAGE 6 OF OUR PROSPECTUS DATED MARCH 21, 2000
AND THE RISK FACTORS LISTED FROM TIME TO TIME IN OUR REPORTS ON FORM 10-Q, S-3
OR 10-K TO READ ABOUT FACTORS YOU SHOULD CONSIDER BEFORE BUYING SHARES OF OUR
COMMON STOCK.

PLAN OF DISTRIBUTION

         We are offering 1,666,667 shares of our common stock to Palisades
Equity Fund under the terms of this prospectus supplement. The common stock will
be purchased at a negotiated purchase price of $250,000. We will also issue
Palisades Equity Fund five (5) year warrants to purchase an aggregate of 50,000
shares of our common stock at an exercise price per share of $0.17. In addition,
we will pay an aggregate of $12,500 in commissions to PEF Advisors, LLC as the
finders in connection with this sale of our common stock. We expect this
transaction to close following this filing. We will not pay any other
compensation in conjunction with this sale of our common stock.

USE OF PROCEEDS

         The net proceeds to us from this offering will be $237,500. We plan
to use the net proceeds for general corporate purposes, including:

         o        funding of the commercialization of our Multiferon(TM)
                  product;

         o        funding collaborative research projects for the development
                  of new technologies;

         o        financing capital expenditures;

         o        payment of financing obligations; and

         o        working capital.

         Pending use of the net proceeds for any of these purposes, we may
invest the net proceeds in short-term investment grade instruments,
interest-bearing bank accounts, certificates of deposit, money market
securities, U.S. government securities or mortgage-backed securities guaranteed
by federal agencies.




MARKET FOR OUR COMMON STOCK

         On October 8, 2002, the last reported sale price of our common stock on
the American Stock Exchange was $0.17 per share. Our common stock began trading
under the symbol "VRA" on April 17, 2000, on the American Stock Exchange.

         As of October 4, 2002 and before the issuance of shares pursuant to
this prospectus supplement, we had 113,029,687 shares of common stock
outstanding.

GENERAL

         You should rely only on the information provided or incorporated by
reference in this prospectus supplement and the prospectus. We have not
authorized anyone else to provide you with different information. You should not
assume that the information in this prospectus supplement is accurate as of any
date other than the date of this document.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

         The statements contained in this supplemental prospectus that are not
purely historical are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange
Act of 1934. These include statements regarding Viragen's expectations, hopes,
intentions, beliefs, or strategies regarding the future. Forward-looking
statements include our statements regarding liquidity, anticipated cash needs
and availability, product revenues and profit margins, and anticipated operating
expense levels, including expected product clinical trial commencement dates,
product introductions, research and development expenditures and selling,
general and administrative expenditures. All forward-looking statements included
in this document or documents incorporated by reference are based on information
available on this date, and we assume no obligation to update any of our
forward-looking statements. You should note that actual results could differ
materially from those contained in forward-looking statements. Among the factors
that may cause our actual results to differ materially are the risks discussed
in the "Risk Factors" section included in the related prospectus.
-------------------

         NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER REGULATORY
BODY HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY
OR ADEQUACY OF THE RELATED PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

                              --------------------

           The date of this prospectus supplement is October 9, 2002.




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                               TABLE OF CONTENTS

                                                                   PAGE
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PROSPECTUS SUPPLEMENT

Plan of Distribution ...........................................      1
Use of Proceeds.................................................      1
Market for our Common Stock ....................................      2
General ........................................................      2
Disclosure Regarding Forward-Looking
  Statements....................................................      2









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