Marion Merrell Dow signed agreements Wednesday with TevaPharmaceutical Industries Inc. and ImmuLogic Pharmaceutical Corp.,expanding the Kansas City drug maker's presence in thebiotechnology field.

In the pact with Teva, of Jerusalem, Marion Merrell has entered intoa collaboration to market Teva's Copaxone, or copolymer-1, formultiple sclerosis in the U.S. and Canada. Teva has completed PhaseIII trials of the drug and expects to file for approval in the U.S. andCanada by mid-1995.

The agreement with ImmuLogic, of Waltham, Mass., is an expansionof a joint development and marketing deal for ImmuLogic's Allervaxallergy drugs. The most advanced product is Allervax Cat, which isexpected to begin Phase III studies by the end of this quarter.Allervax Ragweed is in Phase II trials.

The move by Germany-based Hoechst AG to acquire Marion Merrellshould not affect the new pacts, said Marion Merrell spokesmanRichard Johnson.

"In Teva's product, we have an additional source of revenue and inImmuLogic we have some products that are advancing in clinicaltrials and it was time to address the issue of manufacturing."

Late last month, Marion Merrell and the company's majority owner,Dow Chemical Co., of Midland, Mich., said they were in discussionswith Hoechst concerning the German company's $7.2 billion offer totake over Marion Merrell.

Johnson said financial terms of the marketing agreement with Tevawere not disclosed. The two companies intend to form a group calledTeva Marion Partners to market and promote Copaxone. Teva willmanufacture the drug and Marion Merrell will sell it.

Teva's stock (NASDAQ:TEVIY) jumped $2.25 Wednesday to closeat $29.87, an 8 percent increase.

In expanding its pact with ImmuLogic, Marion Merrell has agreed tobegin construction of a manufacturing plant in Midland, for theAllervax products. The first stage of the facility is expected to becomplete in 1997. The cost of the entire project is estimated atbetween $30 million and $35 million.

The two companies have a 50-50 agreement for the development andcommercialization of Allervax products.

ImmuLogic's chief financial officer, Richard Small, said his companyis expanding the Waltham manufacturing facility and Marion Merrellwill loan ImmuLogic its portion of the funds for the Midland plant.

Marion Merrell (NYSE:MKC) closed Wednesday at $24.87,unchanged. ImmuLogic (NASDAQ:IMUL) was up 37 cents to $7.62.n

-- Charles Craig

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