Sequana Therapeutics Inc. achieved a second milestone payment in its Type II diabetes research with Glaxo Wellcome plc. by identifying several chromosomal regions, common in multiple population groups, which may contain genes associated with the disease.

Callum Bell, Sequana's diabetes project leader, said the next step will be to clone the genes, a process that could take "as little as a year" to complete.

The amount of the milestone payment from London-based Glaxo was not disclosed. Sequana, of La Jolla, Calif., began working with the pharmaceutical firm in July 1994 to discover Type II diabetes genes. The genomics company received the first milestone payment last year after assembling the various groups of individuals to begin the genetic linkage studies. Sequana and Glaxo also are collaborating on the discovery of obesity genes.

The diabetes analyses were performed on DNA samples from more than 5,000 people in families with the disease. "It's the biggest study in Type II diabetes," Bell said.

The study's significance, he added, is the distinct chromosomal regions identified were found to be important in more than one ethnic group, meaning the genes likely are fundamental to the disorder.

"In the past," Bell said, "there have been reported genetic linkages to Type II diabetes, but it hasn't been obvious the genes are important in more than one [population] group."

Type II diabetes, also called non-insulin dependent diabetes mellitus, is considered a polygenic disease, with more than one gene responsible. More than 100 million people worldwide are believed to be affected by the condition.

Sequana's stock (NASDAQ:SQNA) closed Tuesday at $11.625, up $0.75. * Charles Craig