Corange Ltd. has completed the first of two investments inProtein Design Labs, the companies announced Tuesday.Corange, the parent company of Boehringer Mannheim GmbH,paid $30 million for 1.2 million shares of PDL (NASDAQ:PDLI)common stock.

Under an agreement announced in October, Corange is to makea second investment in December 1994 of up to $45 million inadditional PDL shares. Corange has also paid PDL $12 million inlicensing fees for rights to certain PDL antibodies. PDL said$11.3 million of the $12 million will be recorded as revenue inthe fourth quarter.

Under the licensing agreement, Corange will acquire exclusivemarketing rights outside North America and Asia to PDL'shuman anti-cytomegalovirus antibody and its SMART anti-L-selectin and SMART anti-CD18 antibodies. In addition, it willacquire exclusive rights to PDL's human anti-hepatitis Bantibody outside North America.

In return, Corange will pay up to $131 million, including $40million in guaranteed payments and up to $91 million inmilestone payments. Corange is a private company based inHamilton, Bermuda, with its head office in London.

PDL of Mountain View, Calif., purchased the anti-CMV antibodyand the anti-hepatitis B antibody, along with an anti-herpessimplex antibody and an anti-varicella zoster antibody fromSandoz Pharmaceutical Corp. and Sandoz Pharma Ltd. in April.PDL said it has paid Sandoz $2.75 million to relinquish its co-promotion rights outside the U.S., Canada and Asia, and reducethe royalties that Sandoz may earn from the sale of theproducts in Europe. Sandoz will continue to earn royalties onproduct sales in these countries and will retain co-promotionrights in the U.S. and Canada.

PDL said it was necessary to amend the agreement with Sandoz"to facilitate PDL's licensing agreement with Corange and,potentially, with other pharmaceutical companies." PDL wouldlike to license rights to the anti-herpes and anti-varicella zosterantibodies obtained from Sandoz to an Asian pharmaceuticalcompany.

PDLUs stock closed down 50 cents at $23.38 Tuesday. -- BrendaSandburg

-- Brenda Sandburg News Editor

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