Cygnus Therapeutic Systems and The Procter & Gamble Co.have entered into an agreement for the development andcommercialization of smoking cessation products, thecompanies announced Thursday. A spokesperson for Cygnussaid the companies have agreed to develop at least twoproducts, although she would not disclose the candidates. Shesaid, however, that they would differ from the company'sNicotrol transdermal nicotine patch. The products will address"unmet needs," or target a different patient population than thecurrently available smoking cessation products, she said. Theymay have different dosages, duration of action or types ofdelivery than current products. Cygnus' Nicotrol patch will beunaffected by the deal.

While the financial terms of the deal were not disclosed,Procter & Gamble will have exclusive worldwide marketingrights to the products. Cygnus will be responsible for bringingthe new products through regulatory approval and formanufacturing.

The agreement represents Cygnus' second collaboration withProcter & Gamble. Last October the companies entered into adevelopment and marketing agreement for unspecifiedconsumer products using Cygnus' drug-delivery system. Cygnusalso has agreements with Wyeth-Ayerst Laboratories, adivision of American Home Products Corp., and Warner-Lambert Co. for the development of hormone replacementpatches.

Cygnus' stock (NASDAQ:CYGN) closed at $10.50 per share onThursday, down 38 cents.

-- By Karl A. Thiel Associate Editor

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