* Eli Lilly and Co., of Indianapolis, has agreed to pay $3.1 million todevelop an orally active insulin substitute in association with InsulinMimetics Ltd., a subsidiary of the Australia-based Inovax Group. Theagreement also involves researchers from Curtin University ofTechnology in Western Australia and the University of California inSan Francisco.* Cantab Pharmaceuticals plc, of London, said preclinical studiesrevealed that a disabled infectious single cycle herpes simplex virustype 2 (DISC HSV 2) may be an effective vaccine for genital herpessymptoms. The data showed that DISC HSV 2, when administered byinjection, achieved 100 percent protection against primary diseasesymptoms in a model system of genital herpes, and when givenintravaginally reduced recurrence of the disease by 50 percent. Cantabsaid the potential DISC HSV 2 vaccine has been genetically disabledby deleting a gene that codes for a protein needed for virus entry intocells.* Oncogene Sciences Inc., of Uniondale, N.Y., has received $2.5million in commercialization fees from Marion Merrell Dow Inc., ofKansas City, Mo., following completion of the first phase of theirresearch agreement.The agreement, signed in 1992, involves development of assays fortesting the effect of chemical compounds on gene expression. MarionMerrell Dow has agreed to pay Oncogene $11 million over five yearsand make a $6 million equity investment in return for its drugdiscovery technology in the cardiovascular area.

DNA Plant Technology Corp., of Oakland, Calif., has signed a four-year research agreement with Panama-based Alida Marine Inc. todevelop genetically engineered pineapples to control ripening andextend the shelf life of the fruit.Under the terms of the agreement, Alida has purchased 2 million sharesof stock in DNA Plant Technology, which will have exclusive rights tothe technology.

GenPharm International Inc., of Mountain View, Calif., has signed anagreement with Mollegaard Breeding and Research Centre, of Ejby,Denmark, to distribute the former's transgenic rat models in Europe.GenPharm's HLA-B27 transgenic rat is used as a model of humaninflammatory disease. They are raised by inserting the human HLA-B27 gene into fertilized one-cell rat eggs, causing mature rats todevelop lesions similar to those experienced in arthritis, psoriasis andinflammatory bowel disease.

Advanced Magnetics Inc., of Cambridge, Mass., has agreed to pay $1million to Bristol-Myers Squibb, of New York, to regain marketingrights to the former's magnetic resonance imaging contrast agent.In addition to the $1 million, Advanced Magnetics will pay up to $2.75million in royalties to Bristol-Myers Squibb, which will return awarrant for the purchase of 600,000 shares of Advanced Magneticsstock.

Somatix Therapy Corp., of Alameda, Calif., and the U.S. Departmentof Energy have agreed to pay $2.5 million to Lawrence BerkeleyLaboratory, of Berkeley, Calif., for research into potential treatments ofParkinson's disease.Lawrence Berkeley's imaging technology will monitor animal brainstreated with Somatix's gene therapy, which genetically altersfibroblasts to produce neurotransmitter dopamine. Insufficient levels ofneurotransmitter dopamine have been associated with Parkinson'sdisease.080894

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