Genelabs Technologies Inc. announced Monday that it hassigned a non-exclusive worldwide licensing agreement withAbbott Laboratories (NYSE:ABT) under which Abbott willdevelop and commercialize products for diagnosing andscreening hepatitis X virus (HXV).

The hepatitis X virus, as yet uncharacterized, is believed tocause those transfusion-transmitted cases of hepatitis notcaused by hepatitis B or C virus. To date, five viruses that causehepatitis, dubbed A-E, have been isolated and characterized;there are diagnostic tests for them all. But even people whotest negative for all five can contract hepatitis, thus themoniker hepatitis X. "We know there's at least one otherhepatitis virus," said Peter Jansen, Genelabs' chief financialofficer.

Under the terms of the agreement, the Redwood City, Calif.,company (NASDAQ:GNLB) will receive license and milestonepayments and equity investments, which could exceed $10million. Genelabs will receive more than half of those fundswhen the agreement is signed. Genelabs also gets royalties onAbbott's sales of HXV products, and retains the rights todevelop HXV confirmatory tests.

Genelabs signed an agreement with Abbott in 1990 to develophepatitis E virus diagnostic tests, with co-marketing rights inthe Asia Pacific region.

Genelabs stock rose $1.25 a share on Monday, closing at $8.

-- Jennifer Van Brunt Senior Editor

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