• 4SC AG, of Martinsried, Germany, and Esteve SA, of Barcelona, Spain, are collaborating to identify drug candidates directed at targets related to central nervous system diseases. The collaboration is the extension of a pilot project in which 4SC identified hits against a target provided by Esteve. The extended collaboration will focus on further profiling and optimization of the hit molecules as well as starting similar work on additional targets.

• Advanced Magnetics Inc., of Cambridge, Mass., and Cytogen Corp., of Princeton, N.J., reported data showing that magnetic resonance imaging with Combidex (ferumoxtran-10), an investigational iron oxide nanoparticle, aids in the noninvasive diagnosis of metastatic lymph nodes. The data, presented at the International Society for Magnetic Resonance in Medicine 11th Scientific Meeting that continues through today, was from a study that included patients with breast and prostate cancer.

• Argonaut Technologies Inc., of Foster City, Calif., reported the introduction of its Amidation Toolkit, the third in a series of resin-bound reagent products designed to accelerate pharmaceutical drug discovery efforts.

• Caliper Technologies Corp., of Mountain View, Calif., completed the acquisition of Zymark Corp., of Hopkinton, Mass. The deal was valued at $72 million in stock and cash when it was made public in June. The combined company will offer a portfolio of laboratory automation products with a global commercial infrastructure to provide solutions for accelerating drug discovery and development, Caliper said. Zymark now is a wholly owned subsidiary of Caliper and will continue to sell products under its own name. Caliper will move its headquarters to Hopkinton. (See BioWorld Today, June 10, 2003.)

• CollaGenex Pharmaceuticals Inc., of Newtown, Pa., said it filed and served a complaint on United Research Laboratories/Mutual Pharmaceuticals Co. in the District Court for the Eastern District of New York, seeking to prevent Mutual from introducing a 20 mg table of doxycycline hyclate into the U.S. market. CollaGenex also reported that it was served a complaint by Mutual, filed in the District Court for the Eastern District of Pennsylvania. The Mutual complaint alleges, among other things, that Collagenex engaged in certain anticompetitive behavior in an effort to prevent Mutual from commercializing a generic form of Periostat, which is for the treatment of adult periodontitis.

CytRx Corp., of Los Angeles, said research published in the June 24, 2003, edition of the Proceedings of the National Academy of Sciences showed that scientists at the University of Massachusetts Medical School made progress in the RNAi research conducted on obesity and Type II diabetes. The paper details the method for applying siRNA gene-silencing technology to cultured mouse fat cells. CytRx in April licensed RNAi technology from the medical school for use in obesity and Type II diabetes. (See BioWorld Today, April 22, 2003.)

• Dyax Corp., of Cambridge, Mass., said it filed a shelf registration statement with the SEC to issue up to $40 million worth of common stock, debt securities and other types of securities from time to time. The terms of any future offerings would be established at the time of the offering. Dyax said it would use proceeds for general corporate purposes, including the financing of clinical development programs, which include a pair of Phase II-stage recombinant proteins - DX-88 for cardiology and DX-890 for cystic fibrosis.

• Encysive Pharmaceuticals Inc., of Houston, and GlaxoSmithKline plc, of London, said data reported at the International Society of Thrombosis and Haemostasis meeting in Birmingham, UK, support the use of their thrombin inhibitor Argatroban if patients can be identified as at-risk for poor outcomes from heparin-induced thrombocytopenia, a potentially fatal immune reaction to heparin. Their anticoagulant is approved for the prophylaxis or treatment of thrombosis associated with heparin-induced thrombocytopenia. Results showed that three of the seven risk factors - low initial platelet count, renal impairment and history of cardiac and vascular surgery - were highly significant predictors of poor outcomes. Other findings showed that antibodies against heparin were found in almost 10 percent of all patients entering a hospital emergency room with symptoms of thrombosis, including chest pain and stroke, and a history of heparin exposure.

• Endovasc Inc., of Montgomery, Texas, said its board authorized the creation of a new class of common stock, with rights and distributions based on the performance of the company's wholly owned subsidiary, Nutraceutical Development Corp. (NDC). The shares, designated Series NDC common stock, will be distributed to the Aug. 29 Endovasc stockholders of record by dividend on Sept. 15. Endovasc's board will issue one share of the Series NDC common stock for each four shares of Endovasc common stock.

• F. Hoffmann-La Roche Ltd., of Basel, Switzerland, launched a research product designed to detect the virus that causes severe acute respiratory syndrome. The test was developed in eight weeks, and was made possible in part through international collaborations and relationships with virology institutes and government agencies, including the Genome Institute of Singapore, Roche said. Roche has performed preliminary studies with the product and plans additional studies at various sites in Asia, Europe and Canada. Roche said the product is based on real-time polymerase chain reaction technology.

• Forbes Medi-Tech Inc., of Vancouver, British Columbia, said it received a letter from Nasdaq confirming that the company regained compliance with the minimum bid price requirement for continued inclusion of its securities on the Nasdaq SmallCap Market. Forbes Medi-Tech is focused on the prevention and treatment of cardiovascular and related diseases.

• Geron Corp., of Menlo Park, Calif., said data on cell and animal testing of GRN163, its telomerase inhibitor anticancer drug, demonstrated that GRN163 suppresses the growth of human prostate cancer when administered systemically to mice. A paper on the study was published in the July 15, 2003, issue of Cancer Research. The paper describes experiments in which cells from a human prostate cancer were implanted into the flanks of mice, which were then treated by the intraperitoneal infusion of GRN163 over an eight-week period. Tumor growth rate decreased significantly compared to the control animals, and the treated animals showed no gross toxicity. Also, the paper documented and extended Geron's reports that GRN163 is an inhibitor of telomerase in a variety of cultured human tumor cell lines. The paper also presented data showing that GRN163 acts as a direct enzyme inhibitor by binding to the active site of telomerase in a sequence-dependent manner, it said.

The Gladstone Institute of Neurological Disease and the University of California at San Francisco said research published in this week's online edition of the Proceedings of the National Academy of Sciences showed that a protein that senses changes in calcium levels can be used to estimate the extent of cognitive deficits caused by toxic amyloid peptides found in the brains of Alzheimer's disease patients. Mice with high levels of amyloid proteins in their brains and showed poor learning and memory in a maze test had very low levels of calbindin, a protein that binds calcium, in their granule cells.

• Greenovation Biotech GmbH, of Freiburg, Germany, and Aeres Biomedical Ltd., of London, completed a milestone in the development of a production system for the manufacture of therapeutic antibodies in moss. Using a humanized antibody (ABC-48), currently in preclinical development at Aeres for the prevention of deep vein thrombosis, scientists at Greenovation successfully expressed the antibody, which was secreted into the medium. The secreted antibody was shown to be correctly assembled and displayed normal binding activity to its natural ligand.

• HandyLab Inc., of Ann Arbor, Mich., received a $2 million grant from the National Institute of Standards and Technology's Advanced Technology Program to develop a highly sensitive, low-cost, portable broad-spectrum DNA analysis device using electrochemical detection. HandyLab is developing a class of DNA diagnostic devices that use a miniaturized detection system capable of processing raw clinical and environmental samples.

• Hematech LLC, of Sioux Falls, S.D., said South Dakota Governor Mike Rounds recommended $7.5 million in financing to Hematech to assist in the planning for and construction of a $15 million headquarters building that will include a good manufacturing process pilot purification facility. In the next 18 months, Hematech intends to build a biotechnology campus in Sioux Falls and additional animal production facilities around the state. Hematech focuses on developing and producing antibodies for therapeutic uses.

• Hemispherx Biopharma Inc., of Philadelphia, reported Phase IIb data at the International AIDS Society Conference on HIV Pathogenesis and Treatment in Paris, from its AMP 720 trial in which patients' antiviral HAART regimens are interrupted and Ampligen is substituted as mono-immunotherapy. Findings showed that patients who have completed at least nine months of Ampligen therapy were able to stay off HAART for a mean of 29 weeks and continuing, whereas the control group, which was also taken off HAART but not given Ampligen, had earlier HIV rebound with a mean duration of 18.7 weeks (p=0.05).

• ImClone Systems Inc., of New York, said it would receive $6 million through two equity-based milestones in its license agreement with Merck KgaA, of Darmstadt, Germany. The milestones were triggered by Merck's submission of marketing applications for Erbitux for metastatic colorectal cancer in the European Union and Switzerland. Upon receipt of the $3 million payments, ImClone will issue 92,276 and 90,944 common shares to Merck for the regulatory submissions, representing the sale of the shares at a 10 percent premium to market value at the time each milestone was achieved, as provided in their license agreement.

• Innogenetics NV, of Ghent, Belgium, said it was opting to delist from Nasdaq Europe because "of the limited added value to our shareholders and the cost of maintaining a dual listing." Its shares will cease to trade on the market Aug. 15 but will continue on the Euronext Brussels stock market. Innogenetics is focused on specialty diagnostics and therapeutic vaccines.

• InSite Vision Inc., of Alameda, Calif., received a $400,000 secured loan from an investor in an interim financing. Proceeds will be used to fund InSite's general working capital requirements while the company pursues the $1.5 million interim financing previously disclosed, as well as a licensing agreement or longer-term alternative financing. InSite is an ophthalmic products company focused on glaucoma, ocular infections and retinal diseases.

• Labopharm Inc., of Laval, Quebec, completed a bought deal of 4.5 million shares at C$4.90 per share for gross proceeds of about C$22 million (US$16.3 million). The common shares were issued to a syndicate of underwriters led by National Bank Financial Inc. and included RBC Dominion Securities Inc., Research Capital Corp., CIBC World Markets Inc., Orion Securities Inc. (formerly Yorkton Securities Inc.) and Canaccord Capital Corp. Labopharm granted underwriters an overallotment option of up to an additional 15 percent of the issue size, exercisable at any time until Aug. 14. Proceeds will be used to support the anticipated commercialization of once-daily tramadol, including both the product launch in Europe and the submission of a regulatory filing in the U.S., and to advance development of new programs within Labopharm's pipeline, as well as for working capital and general corporate purposes. (See BioWorld Today, June 30, 2003.)

• MetaSense Technologies LLC, of Des Moines, Iowa, said it published biochemical, biophysical and biological studies on a set of two new DNA analogues in Nucleic Acid Research. Biochemically, the DNA modifications, phosphonocarboxylates, were shown to hybridize to complementary RNA molecules in a sequence-specific manner, were highly nuclease resistant, and RNase H active. Specific constructs of the analogues were shown to have greatly enhanced rates of RNase H cleavage, even over the natural DNA/RNA substrates. Biophysically, the DNA analogues when hybridized to complementary RNA gave structures highly analogous to natural DNA/RNA duplexes. Biologically, specific constructs were shown to readily penetrate cell membranes.

The state of Michigan said it would award $2 million from its Life Sciences Corridor company formation fund to assist locally based former employees of Pfizer Inc., of New York, who are looking to start new companies. The funding, which will support 11 proposals related to the creation of 10 companies and the expansion of an existing company, is expected to result in more than 180 jobs.

• Nova BioGenetics Inc., of Atlanta, said that the company's founder, Tim Moses, is stepping down as CEO, leaving the position open. Nova is engaged in the discovery, development and commercialization of therapeutic agents to treat infectious diseases.

• Novavax Inc., of Columbia, Md., reported results suggesting that functional influenza virus-like particles (FVLPs) should be further investigated to determine their usefulness in preventing influenza in humans and animals. The company said the discovery adds to its vaccine program for viral diseases and specifically for influenza. Novavax said it plans to initiate protection studies in animals using the VLPs later in the year. The results were presented at the American Society for Virology's 22nd annual meeting, held on the campus of the University of California at Davis.

• OncoMethylome Sciences SA, of Liege, Belgium, raised 114 million in initial funding and changed its name from OncoGenome Sciences, a shift it said better reflects its focus on cancer detection using its technology of measuring gene hyper-methylation. Investors included ING Belgium, Polytechnos Venture Partners, Life Sciences Partners, Technowal, Meusinvest and S.I.B.L., as well as members of management.

• Prima Biomed Ltd., of Melbourne, Australia, reported positive results from subsidiary Cancer Vac's Phase Ib trial after another four advanced cancer patients were treated with the product. No significant side effects have been seen and the therapy is showing positive effects on tumors in some patients, it said. The current report indicates that two patients who have now continued therapy for 18 months have experienced no progression of their disease. The Cancer Vac immunotherapy is designed to treat cancer by teaching a patient's own immune system to attack a tumor, Prima said.

• Progenics Pharmaceuticals Inc., of Tarrytown, N.Y., said it filed a shelf registration statement with the SEC to permit the company to offer and sell up to 2.75 million common shares. A registration statement relating to the securities listed in the shelf registration statement has been filed but has not yet become effective.

• Protalex Inc., of Albuquerque, N.M., named G. Kirk Raab chairman. Raab served in various roles at Genentech Inc. from 1985 to 1995, including president, CEO and director. Prior to joining Genentech, he was president, chief operating officer and a director of Abbott Laboratories. Currently, he is chairman of Connetics Corp. and Applied Imaging Inc. Protalex is engaged in the development of a new class of drugs for treatment of rheumatoid arthritis and other immune diseases.

• Ribonomics Inc., of Durham, N.C., said it identified 18 channels associated with glucose stimulated insulin secretion, 14 of which had never been identified with a prior role in diabetes. The company said its systems biology technology uses in vitro and in vivo techniques to isolate functional clusters of genes, identifying subpopulations of messages to empirically map disease pathways.

• Santarus Inc., of San Diego, said another $3.7 million was added to its placement of its Series D preferred stock. The financing round concluded in the second quarter at $55.1 million, with the additional funds provided by new international investors. Funding will support development and commercialization of its products for the treatment and prevention of upper gastrointestinal diseases and disorders. (See BioWorld Today, May 23, 2003.)

• Sucampo Pharmaceuticals Inc., of Bethesda, Md., began a multicenter Phase II study in dry eye syndrome, also known as keratoconjunctivitis sicca (KCS), with FK-506, tacrolimus, an immunosuppressive agent. The study will randomize about 160 patients with documented KCS into three treatment groups and be conducted at nine sites in the U.S.

• Targeted Genetics Corp., of Seattle, began a Phase IIb trial of tgAAVCF in cystic fibrosis patients in collaboration with Cystic Fibrosis Foundation Therapeutics Inc., the nonprofit drug discovery and development affiliate of the Cystic Fibrosis Foundation in Bethesda, Md. The double-blinded, randomized, placebo-controlled study, which will include 100 patients 12 years of age and older, also will include bimonthly evaluation of changes in lung function after repeat dosing of tgAAVCF. Researchers also will assess the impact of tgAAVCF on inflammation and biologic markers over time when compared to placebo. Cystic Fibrosis Foundation Therapeutics will fund the study, which will continue to monitor the product's safety and tolerability.

• Teradata, of Dayton, Ohio, a division of NCR Corp., and Information Management Consultants said the Salk Institute is using their data-mining technology for genomics research. The Teradata Warehouse Miner is designed to allow researchers to search for patterns in genetic data found in various regions of mice brains, analysis of which could provide insight into the genetic sources of disease and how drugs can effectively treat those diseases.

• Vical Inc., of San Diego, said the company was asked to manufacture clinical-grade supplies of an experimental DNA vaccine against the West Nile virus for development planned by the Vaccine Research Center, National Institute of Allergy and Infectious Diseases of the National Institutes of Health in Bethesda, Md. The new vaccine manufacturing agreement is in addition to Vical's large-scale DNA vaccine manufacturing contract reported in May, and its Ebola DNA vaccine manufacturing subcontract reported in July 2002. Vical's stock (NASDAQ:VICL) rose $1.02 Tuesday, or 17.9 percent, to close at $6.72.