TheraTech Inc. has granted SmithKline Beecham (SKB)exclusive North American marketing and distribution rights fora testosterone patch for $3 million.

SKB (NYSE:SBH) will make additional milestone payments toTheraTech upon filing a new drug application (NDA) andreceiving marketing approval from the FDA for the TheraDerm-LRS testosterone transdermal delivery system, designed totreat testosterone deficiency in males.

TheraTech (NASDAQ:THRT) is responsible for clinicaldevelopment. The patch is in Phase III trials in the U.S. andSweden, and may be subject to a new drug application in 1994.TheraTech of Salt Lake City retains future co-promotion rightsin the U.S.

Hypogonadism can prevent normal development at pubertyand cause decreased libido, impotence, fatigue, depression andanemia in adult men. Prolonged cases may lead to musclewasting and osteoporosis.

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