• Applied Molecular Evolution Inc., of San Diego, achieved an initial milestone in its collaboration with Chiron Corp., of Emeryville, Calif., to optimize a non-antibody biotherapeutic candidate. Financial terms were not disclosed.

• Atlantic Technology Ventures Inc., of New York, entered a merger agreement with Manhattan Pharmaceuticals Inc., also of New York. A wholly owned subsidiary of Atlantic is expected to merge with Manhattan Pharmaceuticals, with Manhattan remaining as a wholly owned subsidiary of Atlantic upon completion. Atlantic will issue four shares of Atlantic stock to Manhattan stockholders for one share of Atlantic stock outstanding. When completed, Atlantic stockholders will own about 20 percent and Manhattan stockholders about 80 percent of the combined company. Atlantic expects the merger to be completed in the first quarter of 2003. Manhattan holds the rights to oleoyl-estrone, an orally administered small molecule shown to cause weight loss in preclinical studies. Atlantic said its reasons for the merger include an inability to raise funds and a low cash supply for operations.

• AVI BioPharma Inc., of Portland, Ore., entered an agreement with International Therapeutics Inc., of Seattle, to develop AVI's Neugene antisense compounds as therapeutics for HIV. As part of the agreement, ITI will collaborate in the development of Neugene antisense drugs targeting HIV and will test AVI's antisense drugs in its systems. Promising compounds will be taken through preclinical and clinical development by AVI, it said.

• BioCurex Inc., of Rancho Santa Margarita, Calif., presented data related to its Recaf technology at the annual meeting of the International Society of Oncodevelopmental Biology and Medicine in Boston. The six reports were published in the September issue of Tumor Biology. BioCurex is developing products based on patented technology in the areas of cancer diagnosis, tumor imaging and therapeutics.

• Bioenvision Inc., of New York, reported at the American Society of Hematology meeting in Philadelphia data from a Phase II trial of clofarabine in 61 patients with a variety of hematological malignancies who were in relapse or were refractory to other therapies. More than half the patients had relapsed or refractory acute myeloid leukemia (AML) and were of varied prognostic status. Out of 31 relapsed/refractory AML patients, 13 achieved a complete remission and four achieved a complete remission with low platelet count but were platelet transfusion independent, amounting to an overall response rate of 55 percent. Clinical activity also was reported in high-risk patients with myelodysplastic syndrome and blast phase chronic myeloid leukemia. Clofarabine is being developed with ILEX Oncology Inc., of San Antonio.

• Cell Therapeutics Inc., of Seattle, said that $145.4 million aggregate principal amount of its 5.75 percent convertible subordinated notes due June 15, 2008, were tendered for exchange in its offer for about $85.5 million aggregate principal amount of its new 5.75 percent convertible senior subordinated notes due June 15, 2008, and cash payments in lieu of the issuance of fractional portions of new notes in the amount of about $5,680. About $29.6 million aggregate principal amount of its subordinated notes were not tendered for exchange and will be subordinate to the company's senior debt and the new senior subordinated notes. As a result of the exchange offer, the company reduced the aggregate principal amount of its outstanding convertible debt by about $59.9 million and its related annual cash interest payments by about $3.4 million, it said.

• Cephalon Inc., of West Chester, Pa., said it acquired all rights to modafinil in Germany and Spain. Cephalon markets modafinil in the U.S. under the name Provigil. The company reacquired rights to modafinil in Germany, Austria, Switzerland and certain countries in Central and Eastern Europe from Merckle GmbH, and in Spain from Cepa Schwarz Pharma. Financial terms of the agreements were not disclosed. Merckle and Cepa Schwarz Pharma acquired marketing rights from Laboratoire L. Lafon in 1993. Cephalon acquired Lafon in 2001 for $450 million in cash. Modafinil is marketed in Europe for the treatment of excessive daytime sleepiness associated with narcolepsy, under the brand names Provigil in the United Kingdom, Modiodal in France and Spain, Vigil in Germany, and Modasomil in Austria and Switzerland. (See BioWorld Today, Dec. 4, 2001.)

• Cytogen Corp., of Princeton, N.J., reported a series of changes within its senior management team. Cytogen's board accepted the resignation of Joseph Reiser as president and CEO. He will continue to serve as a director. The board elected Michael Becker president and CEO, and he also was appointed to the board. Previously, Becker served as vice president, business development and industry relations. The board also accepted the resignation of Lawrence Hoffman, vice president and chief financial officer. Thu Dang was promoted to vice president, finance.

• Genome Therapeutics Corp., of Waltham, Mass., completed a study comparing the microbiological and pharmacokinetic activity of two formulations, capsule and sachet (powder for reconstitution), of its antibiotic, Ramoplanin. Analysis of the data confirmed Ramoplanin's ability to suppress gastrointestinal enterococci. Both formulations were equally effective microbiologically and there was no evidence of systemic absorption, it said.

• ILEX Oncology Inc., of San Antonio, said it agreed in principle to exclusively sublicense Campath-related diagnostic testing rights for Europe, the Middle East and Israel to BioAnaLab Ltd., of Oxford, UK, whose core competencies are flow cytometry and enzyme-linked assays for measurement of antigen and antibody levels in blood or body fluids. Campath (alemtuzumab) works by targeting the CD52 antigen, resulting in the removal of malignant lymphocytes from the blood, lymph nodes, bone marrow and other affected organs, the company said.

• Isis Pharmaceuticals Inc., of Carlsbad, Calif., said that in a Phase II trial of ISIS 2503 in combination with gemcitabine, median survival time was more than six months in patients with pancreatic cancer, exceeding the primary endpoint of the study. Summary results of the study were described Tuesday at the 6th National Institutes of Health Therapeutic Oligonucleotide Interest Group Symposium in Bethesda, Md. The trial enrolled 48 patients with locally advanced or metastatic pancreatic cancer who had not received prior chemotherapy for their disease. ISIS 2503 is an inhibitor of H-ras, a molecule known to be involved in human cancers, the company said.

• LION biosciences AG, of Heidelberg, Germany, said it will receive a $2 million milestone payment from Bayer AG, of Leverkusen, Germany, for delivering software components for a pharmacophore informatics project to enhance lead identification and optimization in drug discovery. LION expects to receive the payment by the end of the month.

• MaxCyte Inc., of Rockville, Md., said it has undergone a recapitalization and financing to effect a change of control from its parent company, EntreMed Inc. After the move, a group comprised of MaxCyte's CEO and certain noteholders has voting control of MaxCyte. The transaction allows MaxCyte to focus on its core strengths, commercialize its platform technology and pursue future financing from investors, the company said. MaxCyte closed a $1.75 million tranche of its Series A financing. To date, about $8 million has been invested in the company. MaxCyte focuses on nonviral therapeutic gene transfer, identifying ways to deliver drugs and accelerating the drug discovery process.

• Monsanto Co., of St. Louis, said it made its rice genome data available to the worldwide research community more than two years ago to help accelerate research projects in this area. The International Rice Genome Sequencing Project, a consortium of research institutes, said in Japan Wednesday that the rice genome has been decoded six years ahead of time. In April 2000, Monsanto said it had a breakthrough in decoding the rice genome and committed to share its data with the consortium.

• Nanogen Inc., of San Diego, signed a nonexclusive license with Athena Diagnostics to certain patents and patent applications relating to methods of using Apolipoprotein E isoforms, or any nucleic acid sequence relating to a gene encoding such isoforms, associated with the detection, diagnosis and monitoring of Alzheimer's disease. Financial terms of the agreement were not disclosed.

• Nexell Therapeutics Inc., of Irvine, Calif., said it filed a certificate of dissolution with the secretary of state of Delaware. Pursuant to its plan adopted by the board in October and authorized and approved in November, a cash distribution of 5 cents per share will be made on or about Dec. 23, to common stockholders of record on Dec. 18, other than the company's Baxter affiliate. As the company's sole preferred stockholder, the Baxter affiliate will receive substantially all of the remaining assets of Nexell, other than a contingency reserve to satisfy current and anticipated liabilities, in partial satisfaction of its liquidation preference. At the close of business on Dec. 18, Nexell's stock transfer books were closed, and certificates representing its common stock and preferred stock will not be assignable or transferable except by will, intestate succession or operation of law, and the common stock and preferred stock will be treated as no longer being outstanding. The company officially began its closing in May. (See BioWorld Today, May 16, 2002.)

• Organogenesis Inc., of Canton, Mass., said it resumed shipment of Apligraf living skin substitute to its marketing partner, Novartis Pharma AG, of Basel, Switzerland. Novartis has resumed the supply of Apligraf to physicians and hospitals for treatment of patients with venous leg and diabetic foot ulcers.

• Pain Therapeutics Inc., of South San Francisco, initiated a pilot study in patients with irritable bowel syndrome. The study will enroll 50 patients diagnosed with the affliction at a medical center in Israel. The study is being conducted under a U.S. investigational new drug application. The company expects to complete enrollment in the second quarter of 2003.

• Primagen Holding BV, of Amsterdam, the Netherlands, presented preclinical data on its Mitox tests at the HIV-1 DART conference in Florida. The presentation highlighted the technical performance of Primagen's mitochondrial nucleic acid quantification tests. The tests measure mitochondrial DNA and RNA in relation to mitochondrial toxicity-related disease caused by HIV-1 treatment.

• Sunesis Pharmaceuticals Inc., of South San Francisco, said it reached the first major milestone in its research collaboration initiated in May with Johnson & Johnson Pharmaceutical Research & Development LLC, of La Jolla, Calif. The collaboration is focused on the discovery of small-molecule enzyme inhibitors for the treatment of major chronic diseases, including inflammatory and autoimmune diseases. Sunesis achieved the milestone by discovering and delivering a lead series of compounds to Johnson & Johnson. Sunesis will receive an undisclosed milestone payment, and Johnson & Johnson will increase its research funding support at Sunesis. The deal was originally signed in May. (See BioWorld Today, May 7, 2002.)

• Tm Bioscience Corp., of Toronto, and MetriGenix Inc., of Gaithersburg, Md., launched the Tm100 Universal Array on MetriGenix's 4D Assay System. The Universal Array Technology is an improvement over standard DNA biochips/microarrays, providing increased accuracy, reliability and flexibility, the companies said.

• Tripos Inc., of St. Louis, said that payment related to a previously delayed milestone was triggered and will be made in 2002 by an undisclosed partner within its enterprise informatics consulting business. Tripos will receive more than $2 million for work performed as a subcontractor on the project.

• V.I. Technologies Inc., of Watertown, Mass., reported Institutional Review Board approvals at its first sites for both studies comprising the Inactine pathogen reduction red blood cell Phase III program. Processing of blood for those studies was initiated. The pivotal Phase III program comprises two studies to evaluate the safety and effectiveness of Inactine-treated red blood cells. The studies are expected to enroll 270 patients combined: 200 in the acute surgical transfusion support setting and 70 patients in the chronic transfusion support setting.

• ViaCell Inc., of Boston, presented study results at the American Society of Hematology's 44th annual meeting in Philadelphia on its ability to expand and preserve purified stem cell populations from umbilical cord blood for potential use as cellular medicines. Scientists showed, among other things, that populations of human umbilical cord blood stem cells that are expanded using ViaCell's Selective Amplification technology can be cryopreserved without any significant loss of function.

• Vion Pharmaceuticals Inc., of New Haven, Conn., said the Nasdaq Listing Qualification Panel determined that the company's stock will be transferred from the Nasdaq National Market to the Nasdaq SmallCap Market effective today. The stock will continue to trade under the symbol VION. Vion previously reported it received delisting notification after its stock closed at less than $1 per share for 30 consecutive trading days.