LONDON ¿ Lipid specialist Scotia Holdings plc, of Stirling, Scotland, has signed a two-year agreement to apply its galactosome drug-delivery technology to a number of Bristol-Myers Squibb¿s molecules.

The financial terms of the deal were not disclosed. New York-based Bristol-Myers Squibb will fund the feasibility studies, and has the option to develop any of the prototype formulations for possible registration and marketing. If that happens, the two companies will then enter into development and licensing agreements under which will Scotia will receive milestone payments and royalties based on worldwide sales.

Scotia is aiming to build its galactosome reformulation expertise into a significant technology platform. In September 1998, the company signed a similar deal to reformulate one of Basel, Switzerland-based F. Hoffman La- Roche¿s marketed products. Galactosomes can enhance absorption from the gastrointestinal tract of otherwise relatively difficult-to-absorb drugs.

Rob Dow, Scotia¿s CEO, said the development agreement with Bristol-Myers Squibb ¿adds further credibility to our belief in the importance of these enhanced-formulation technologies in the development of a product¿s full potential.¿ ¿ Nuala Moran