Lidak Pharmaceuticals reported Friday that negotiations with apotential development and marketing partner for Lidak'sLidakol, a topical anti-viral product, have been terminated.

Pursuant to the original agreement, which was signed inprinciple, the proposed partner's name was not disclosed. Lidakwill continue to hold all rights to Lidakol in the U.S. and itsterritories, and Canada.

Michael Lorber, Lidak's chief financial officer and vicepresident, could not release details concerning the terminationof the agreement, but said, "We basically reached an impassewith several of the final terms of the negotiations anddetermined that going forward wasn't possible."

Lorber said that although the company is continuing to look forother partners and that some discussions are under way, it willmove into further testing of Lidakol on its own.

Lidak of La Jolla, Calif., reported in its 10Q report of June 30that it had approximately $11.2 million cash. Its current burnrate, according to Lorber, is about $250,000 a month.

Lidak also announced that it recently received FDA approval ofits Phase II protocol for Lidakol as a treatment for genital andoral herpes.

U.S. trials are scheduled to begin in November for genitalherpes in 60 patients, and European trials on oral herpes aredue to begin in a 72-patient study almost simultaneouslyunder a 1991 licensing agreement with Brocades Pharma of theNetherlands. -- Michelle Slade

-- Michelle Slade Associate Editor

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