CoCensys Inc. received FDA clearance to begin clinical trials of itslead compound, ACEA 1021, for treatment of stroke, triggering amilestone commitment from Switzerland-based Ciba-Geigy Ltd. topurchase $5 million in CoCensys common stock.

Daniel Korpolinski, president and CEO of ConCensys, said the $5million is part of $19.2 million his Irvine, Calif.-based companyexpects to realize this year from the collaboration it formed last yearwith Ciba-Geigy.

The amount of CoCensys stock issued to Ciba-Geigy will be basedon the average share price 10 days prior to Friday's FDA approval ofthe investigational new drug application and 10 days following it.CoCensys' stock (NASDAQ:COCN) closed Monday at $3.75, up 50cents.

CoCensys currently has 13.8 million shares outstanding. As of Dec.31, the company reported it had $8.5 million in cash and a burn rateof $1.3 million per month.

ACEA 1021 is a potential drug based on a class of compoundsknown as glystasins. They are designed to inhibit activity ofneurotransmitter glycines and minimize nerve cell death caused bycerebral ischemia following strokes or head injuries.

Korpolinski said the clinical trials for treatment of stroke will be heldin Europe and the U.S. and will be funded through the collaborationwith Ciba-Geigy.

In May 1994, CoCensys and Ciba-Geigy entered a unique agreementin which CoCensys developed a sales force to sell four Ciba productsto psychiatrists and dedicated profits from the sales for developmentof ACEA 1021.

The $19.2 million CoCensys expects to get from the collaborationthis year would come from the stock purchase by Ciba, profits fromthe sales force and a $7 million line of credit from Ciba. _ CharlesCraig

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