Ciba-Geigy AG has ended its agreement with AppliedMicrobiology Inc. for the development of the anti-microbialpeptide Ambicin for treating bovine mastitis.

Applied Microbiology (NASDAQ:AMBI) announced on Fridaythat the agreement "was terminated when it became apparentto the parties that the regulatory climate in the U.S. was morefavorable for the use of Ambicin in the treatment of mastitis inanimals than it is in Europe, where Ciba-Geigy has its principalinterests in a mastitis treatment."

In the past two years, Applied Microbiology of Brooklyn, N.,Y.,has lost two other collaborators. Proctor & Gamble Co. ended anagreement for the development of Ambicin as a mouth rinse inFebruary 1992 and Pfizer Inc. pulled out of an agreement todevelop the peptide as a plaque-fighting product in June 1991.

But this July SmithKline Beecham stepped in to pursuedevelopment of Ambicin oral care and oral hygiene productswith Applied Microbiology. The company has also licensedAmbicin to Calgon Vestal Laboratories, a subsidiary of Merck &Co. for development of skin care products and to BeiersdorfGmbH of Hamburg, Germany, to sell as an underarm deodorant.

With regard to the bovine mastitis indication, in 1992, BabsonBrothers of Naperville, Ill., began marketing the product as anexternal dip for the prevention of the disease, and in 1991Applied Microbiology signed a license and supply agreementwith Compagnie Francaise Produits Industrielles.

-- Brenda Sandburg News Editor

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