Baxter International's Biotech Group has granted to AppliedImmune Sciences Inc. (AIS) a non-exclusive license coveringcertain patents for Baxter's anti-CD34 antibodies and stem cellpopulations, AIS said Monday.

AIS declined to disclose terms of the arrangement.

AIS of Santa Clara, Calif., said it will use the antibodies with itsproprietary stem cell separation device, the AIS Cellector.

Stem cells are the cells in the blood and bone marrow fromwhich all blood cells are derived. The goal of stem cell therapyis to separate the stem cells from the blood or bone marrowand process them to enhance their immune capabilities. Theyare then reinfused into the patient.

"The CD34 antibodies are used to identify the stem cells," saidJames Smith, AIS's senior vice president and chief operatingofficer. "But in order for stem cell therapy to be successful, thecells must be collected and processed in a device such as AIS'sCellector."

The non-exclusive license granted to AIS is based on patentscovering anti-CD34 antibodies, populations of cells that expressthe CD34 antigen, and processes by which these cells areextracted from human bone marrow and blood, AIS said.

Smith told BioWorld that the licensing arrangement with Baxterwas a "prudent business decision" that would guarantee thatAIS's clinical studies -- now in the pilot phase -- would not beimpeded. He added that the terms with Baxter were "notonerous" or "not generous," but fair.

AIS's stock (NASDAQ:AISX) closed Monday at $21.50, up 38cents a share.

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