DynaGen Inc. announced Wednesday that it has signed a letterof intent giving Cambridge Biotech Corp. rights to certain rapidtest technologies for tuberculosis and other mycobacteria.

Indu Muni, DynaGen's president and chief executive, said thefinancial details would not be disclosed until the deal is signedin 60 days. A similar agreement with International MurexTechnologies Corp. (IMT) of Toronto last month raised $625,000for DynaGen, which will also receive a royalty on IMT'sworldwide sales of specified products.

Cambridge Biotechnology of Worcester, Mass., plans to adaptDynagen's serological antibody detection technology to its latexagglutinography slide instrument assay (SIA) and its rapid testdevice (RTD) formats to rapidly and accurately screen fortuberculosis. The disease kills as many as 3 million peopleannually, but is treatable in its early stages.

According to Muni, DynaGen has in its product line 10mycobacteria tests developed from antigens and antibodieslicensed from various institutions. DynaGen is seekingadditional development and marketing partners for several ofthese tests and plans to market some itself.

IMT has worldwide exclusive rights to a general mycobacterialantigen assay, and Cambridge Biotech will share co-exclusivitywith IMT on a single-test assay, called SUDS (single-usedetection systems), made by IMT, and RTD, made by CambridgeBiotech.

DynaGen of Cambridge, Mass., has pending five U.S. andEuropean patents covering mycobacteria tests. The companyannounced preparations for a second offering of 800,000 unitslast month.

According to Muni, the company's burn rate is $150,000 to$180,000 per month, but he said "We have sufficient cash tocontinue doing what we're doing." . Muni estimated thatthe U.S. market for tuberculosis tests is between 5 million and6 million annually. -- Michelle Slade

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