Genzyme Transgenics Corp. expects to begin this year the firstclinical trial in the U.S. with a human protein, antithrombin III,generated in the milk of transgenic goats specifically bred to producethe natural anti-blood clotting agent.

Genzyme Transgenics' majority stockholder, Genzyme Corp., ofCambridge, Mass., which owns 48 percent of the Framingham,Mass., company, will provide $10 million to support the clinicaldevelopment program. The funding is in the form of a line of creditwith a 7 percent annual interest rate and is convertible to GenzymeTransgenics common stock. The agreement gives Genzyme co-marketing rights worldwide, except in Asia.

Genzyme officials said clinical trials of antithrombin III are expectedto begin in the second half of 1996. Funds, in addition to the $10million loan, are available to finance the studies through March 1997.

Antithrombin III, a plasma protein, is marketed in Europe and Japanprimarily by Centeon, a recently formed joint venture betweenHoechst AG, of Frankfurt, Germany, and Rhone-Poulenc Rorer Inc.,of Collegeville, Pa. The plasma protein is used to treat antithrombinIII deficiencies, which are hereditary or acquired as a result of otherdisorders.

Genzyme Transgenics purchased a license from Centeon to use theprotein and will pay a 3 percent royalty on sales.

Producing the protein in transgenic goat milk is an alternative toderiving it from donor blood plasma. The goats are altered byinserting into their cells human DNA sequences that express theantithrombin III protein.

Genzyme Transgenics stock (NASDAQ:GZTC) closed Monday at$5.50, up 50 cents, a 10 percent increase. Genzyme(NASDAQ:GENZ) ended the day down 87 cents at $54.12, a 1.5percent decline. _ Charles Craig

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