• Array BioPharma Inc., of Boulder, Colo., expanded a collaboration with South San Francisco-based Genentech Inc. to develop small-molecule drugs against an additional protein target in the field of oncology. The original collaboration began in January 2004 to advance two of Array's programs into the clinic. With the expansion, Array will receive additional research funding, research and development milestone payments and product royalties. Genentech will be responsible for clinical development and commercialization of any products that result. (See BioWorld Today, Jan. 7, 2004.)

• BioSource International Inc., of Camarillo, Calif., said the unsolicited proposal from Bio-Rad Laboratories Inc., of Hercules, Calif., to acquire BioSource for $8.50 per share, or about $82 million in cash, is being reviewed. BioSource was informed by Genstar Capital Partners II LP, its largest stockholder, that the proposed price is significantly below Genstar's view of BioSource's inherent value. BioSource focuses on integrated solutions in the areas of functional genomics, proteomics and drug discovery.

• Cryptome Pharmaceuticals Ltd., of Melbourne, Australia, signed an agreement with Murdoch Childrens Research Institute to provide Cryptome with two proteins to mine for drug candidates. Cryptome uses a high-throughput screening process, called Cryptomics, to identify, segregate and test fragments of natural proteins not previously recognized as potential therapeutic drugs. Cryptome will retain all intellectual property and commercialization for new entities emerging from the work.

• Enzo Biochem Inc., of Farmingdale, N.Y., said the U.S. Patent and Trademark Office has declared an interference between a patent application for the interferon protein, interleukin-6, owned by the company's subsidiary, Enzo Therapeutics Inc., and four U.S. patents owned by Israel's Yeda Research & Development Co. Ltd. The purpose of the interference is to determine which was the first to make the invention. IL-6 is a cytokine that plays roles in host defense, acute phase reactions, immune response and hematopoiesis.

• Hemosol Corp., of Toronto, closed financing transactions to raise C$13.4 million in gross proceeds and to extend its C$20 million credit facility. The company will use the funds, which should last through the end of the year, to advance its therapeutic protein and bio-manufacturing initiatives. The first of three investigational new drug applications should be filed before the end of the year.

• Innovate Oncology Inc., of New York, entered an exclusive agreement with Prostagenics LLC, of East Rutherford, N.J., for the rights to develop and commercialize Capridine-Beta to treat prostate cancer. The product is a nitroacridine derivative that works by stimulating expression of p16, the tumor-suppressor gene that inhibits cyclic-dependent kinases CDK-2, CDK-4 and CDK-6. An investigational new drug submission is being prepared to begin a Phase I trial that would determine the maximum tolerated dose of Capridine-Beta for advanced solid tumors.

• Interleukin Genetics Inc., of Waltham, Mass., is continuing to review its accounting treatment of its March 2003 sale of Series A convertible preferred stock and convertible long-term debt in its previously reported financial statements for the year ended Dec. 31, 2003. The company said the filing of its annual report on Form 10-K for the year ended Dec. 31, 2004, will be further delayed until the completion of the review. Interleukin also is reviewing the accounting treatment of its research and development agreements with affiliates of Alticor Inc., of Ada, Mich., and anticipates that, as a result of the review, some or all of the payments received under those agreements will be reclassified as payments for equity rather than revenues.

• Ligand Pharmaceuticals Inc., of San Diego, exercised the final option under its November agreement with Indianapolis-based Eli Lilly and Co. to buy down a further portion of the U.S. royalties on sales of the cancer drug Ontak (denileukin diftitox). Ligand will pay $13 million for elimination of the Ontak royalties due on net sales in 2006. In January, Ligand exercised the first option making a $20 million payment to eliminate royalty obligations in 2005. Beginning in 2007, Ligand will pay no royalties to Lilly on U.S. sales up to $38 million, a royalty rate of 20 percent on net sales between $38 million and $50 million, a rate of 15 percent on sales between $50 million and $72 million, and a rate of 10 percent on sales above $72 million. (See BioWorld Today, Nov. 10, 2004.)

• Marnac Inc., of Dallas, said Multiple Sclerosis Journal has published in its April edition a study of pirfenidone showing the therapy halted disease progression and sometimes improved symptoms. Results from the year-long, double-blind, randomized Phase II trial demonstrated that adults with secondary progressive MS experienced improvement in physical function, such as walking, balance, hand function and bladder control.

• MD Biosciences, of St. Paul, Minn., entered an agreement with Lee Laboratories, a subsidiary of Franklin Lakes, N.J.-based Becton, Dickinson and Co., to sell PG-PS products. PG-PS are purified polymers produced from the cell walls of Streptococcus pyogenes Group A. The polymers induce an acute and chronic inflammatory reaction in vivo.

• NeoRx Corp., of Seattle, said its 2004 financial statements filed with the SEC last week includes the audit opinion of KPMG LLP qualifying NeoRx as a going concern. The company's pipeline includes STR, a radiotherapeutic targeting bone, which is in a pivotal Phase III trial for patients with multiple myeloma. NeoRx's stock (NASDAQ:NERX) fell 16.5 percent Friday, or 16 cents, to close at 81 cents.

• Neurochem Inc., of Laval, Quebec, said it unblinded the Phase II/III study for Fibrillex (1,3-propanedisulfonate). The company will release results once it analyzes and validates the data within about two weeks. Fibrillex is an orphan drug and fast-track product designed to treat AA amyloidosis.

• pSivida Ltd., of Perth, Australia, initiated full development of its BrachySil product in a second cancer indication, pancreatic cancer. A clinical program should begin before the end of this year. BrachySil, a micron-sized particle in which the isotope 32-phosphorus is immobilized, is in another clinical program for primary liver cancer.

• Spectral Diagnostics Inc., of Toronto, and its joint venture research and development company, IDx Inc., also of Toronto, reported that its rapid assay for West Nile virus has met the primary endpoints of a pivotal trial conducted by a major U.S. public health laboratory. The study demonstrated that the WNV rapid assay has a high degree of sensitivity and specificity for diagnosing exposure in patients who are at risk. Spectral said the companies will remain on schedule to submit those results to Canadian and U.S. regulatory agencies in time for physicians to access the test during the 2005 WNV summer season.

• Syngenta AG, of Basel, Switzerland, agreed to a settlement with the U.S. Department of Agriculture for its unintended release of a limited amount of Bt10 corn. Investigations by the Environmental Protection Agency and the USDA have concluded that there is no human or animal health or environmental concerns with Bt10 corn. The USDA issued a $375,000 fine and a requirement that Syngenta sponsor a compliance training conference. Genetically modified corn, Bt10 mistakenly was supplied as Bt11 corn between 2001 and 2004. (See BioWorld Today, March 30, 2005.)

• Theravance Inc., of South San Francisco, said results from a series of in vitro studies and human clinical studies with the antibiotic telavancin were presented earlier this month at the 15th European Congress of Clinical Microbiology and Infectious Diseases in Copenhagen, Denmark. Data indicated that telavancin possesses a low potential for resistant mutant selection and exhibited potent in vitro activity across a spectrum of Gram-positive organisms. Phase I data showed telavancin had excellent penetration and good tolerability in hemodialysis subjects.

• Viventia Biotech Inc., of Toronto, received approval from Health Canada to amend its Phase I trial for Proxinium in patients with bladder cancer to incorporate a roll-in Phase II arm. The dose-escalation study has enrolled 20 patients at multiple sites across Canada and should enroll another 12 to 16 patients before beginning the Phase II arm. That arm will enroll 24 additional patients by the first quarter of 2006.