* Sequus Pharmaceuticals Inc., of Menlo Park, Calif., and ZenecaPharmaceuticals, of London, restructured their internationaldistribution agreement for Amphotec, a lipid-based formulation ofamphotericin B. Sequus will reacquire all marketing rights except fornine European countries. In return Sequus will restructure certainmilestones payments, adjust pricing for Amphotec to providecompetitive flexibility, and exchange certain inventory.

* Virus Research Institute Inc., of Cambridge, Mass., began a PhaseI/II trial of its rotavirus vaccine at two U.S. centers. The live, oralviral vaccine was tested in a series of Phase I studies. The Phase I/IIstudy is a double-blinded, placebo-controlled trial in 120 infants.

* Ergo Sciences Corp., of Charlestown, Mass., said preliminaryanalysis from two Phase III trials of Ergoset, a formulation ofbromocriptine, showed the ergot alkaloid improved control ofglucose, triglycerides, cholesterol and free fatty acids in Type IIdiabetes patients. Ergo intends to file a new drug application in 1997.The company also registered to sell 2.5 million shares in a publicoffering, which would give it 12.7 million shares outstanding.

* Gliatech Inc., of Cleveland, said researchers at Stanford UniversitySchool of Medicine identified wake-promoting or vigilant-promotingproperties in Gliatech's histamine H3 receptor antagonists.

* Isis Pharmaceuticals Inc., of Carlsbad, Calif., and ProtoGeneLaboratories Inc., of Palo Alto, Calif., renewed their exclusivecollaboration for the automation of a small- molecule combinatorialdrug discovery program. The original deal in 1994 was to developnovel instrumentation for combinatorial organic synthesis and gaveIsis exclusive access to ProtoGene's automated parallel arraysynthesizer. Part of the new deal allows the companies to jointlycollaborate with third parties in combinatorial drug discovery.

* Myriad Genetics Inc., of Salt Lake City, began beta-site testing ofBRACAone genetic analysis for susceptibility to breast and ovariancancers. The test is designed to detect mutations in the BRCA1 gene,which indicates a predisposition to the cancers. Commercial launchof the product is expected later this year.

(c) 1997 American Health Consultants. All rights reserved.