The University of Alberta has received its single largest cash grant to date to fund a new research centre to study viruses.

The university is using the $28 million donation from the Li Ka Shing Foundation to develop the Li Ka Shing Institute of Virology, which aims to develop new drugs, vaccines and diagnostic tests that would enhance human health and reduce the impact of viral infections. The institute plans to recruit top-level researchers to provide learning opportunities for graduate and undergraduate students in virology and related studies.

"Our researchers have been at the forefront of virology research for decades, including Dr. Lorne Tyrrell and his work developing a treatment for hepatitis B. The Li Ka Shing Institute of Virology will provide a state-of-the-art home to some of the world's very best researchers in virus-based diseases and will help place the university in its rightful place among top centres of such work," said University of Alberta president Indira Samarasekera.

The institute is also supported by a $52.5 million investment by the province.

"Our investment today will draw more of the world's best researchers to Alberta and add to the incredible pool of talent already here," said Premier Ed Stelmach.

The new institute will allow the U of A to expand research on certain virus-based diseases such as Hepatitis.

"Hepatitis kills 4,000 people every day worldwide, yet so few people recognize it as a major threat to public health," said U of A researcher Lorne Tyrrell.

The university says Tyrrell and his team have been studying hepatitis B and C viruses, and have developed lamivudine, the first oral antiviral treatment for chronic hepatitis B. 

The university has already attracted Dr. Michael Houghton, the man who discovered hepatitis C. He is expected to start work at the institute in June.

Over the past few years, the Li Ka Shing Foundation has supported St. Michael's Hospital in Toronto, Ontario and the University of Calgary.

With files from Deb Shiry