Alliance Pharmaceutical Corp. said Tuesday that it is regainingmarketing and manufacturing rights outside of North Americafor its Imagent diagnostic imaging agent and Oxygenttemporary blood-substitute product from BoehringerIngelheim International GmbH.

The companies' May 1989 agreement granted Boehringermarketing rights outside North America for Alliance'sperfluorooctylbromide (PFOB) products for use as contrastagents and blood substitutes. In a June 1993 modification tothe agreement, Alliance of San Diego acquired the option totake back these rights at any time.

In exercising this option, Alliance (NASDAQ:ALLP) grantedBoehringer a warrant to purchase 500,000 shares of Alliancecommon stock at $12 per share. The warrant is exercisable forseven years and is subject to Alliance's right to call the warrantif its stock price achieves certain levels.

Under the original agreement Boehringer purchased 953,388shares of Alliance common stock. It recently sold these sharesto a U.S. investment management firm.

In announcing these transactions, Alliance said it now hasunrestricted rights to manufacture and market all of itsproducts. The company said it is discussing clinicaldevelopment and marketing of certain of its products withmore than one potential partner. Alliance's Imagent GI oralcontrast agent for use with magnetic resonance was approvedby FDA last August. Imagent LN, a contrast agent for lymphnodes, is in Phase II clinicals and Oxygent is in Phase I clinicals.

Alliance's stock was down 50 cents a share on Tuesday, closingat $8.75.

-- Brenda Sandburg News Editor

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