Genelabs Technologies Inc. and Paradigm Biosciences Inc.agreed Wednesday to co-develop Paradigm's proprietaryvaccine adjuvants. Genelabs will manufacture and market theadjuvants.

Genelabs (NASDAQ:GNLB) of Redwood City, Calif., will purchase$500,000 of Paradigm preferred stock and will receiveexclusive worldwide manufacturing and marketing rights tothe adjuvants in all hepatitis vaccines, and exclusive rights inAsia and the Pacific rim in vaccines targeted against varioustropical and childhood diseases. Paradigm of Salt Lake City willreceive royalties on the sales.

Privately held Paradigm's adjuvant technology is based onligand-receptor binding complexes that serve to control T cellfunction by regulating lymphokine genes.

-- Jennifer Van Brunt Senior Editor

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