Oncologix Inc. signed an agreement with Merck & Co. Inc. forexclusive rights to develop and market an oncotoxin devised by Merckfor treatment of tumors that over-express the epidermal growth factorreceptor (EGFR).Lynn Holland, Oncologix's coordinator for corporate communications,declined to release financial terms of the agreement. Merck, ofWhitehouse Station, N.J., had designated the product, TP40. Oncologixhas renamed it OLX-103 and plans to begin Phase I/II clinical trials ofthe drug in 1995 for treatment of bladder cancer. The drug is designedto reduce tumor size.Merck conducted Phase I trials in 1991 for patients with recurringsuperficial bladder cancer, but Holland said results have not beenreleased.Oncologix, of Gaithersburg, Md., also is conducting preclinical trialsfor an oncotoxin, OLX-209, to target tumors that over express theerbB-2 oncoprotein. It expects to file an investigational new drugapplication with the FDA in 1995 for OLX-209. _ Charles Craig

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