Deprenyl Research Ltd. said it has created a new company,Bone Health Inc., to develop a vitamin D analog and otherproducts to treat osteoporosis.

The vitamin D analog, One-alpha D2, increases bone density.Deprenyl Research has assigned exclusive Canadian rights tothe compound to Bone Health.

The orally administered compound is in U.S. safety trials inpost-menopausal women. The trial will end this month, anddata is expected to be available in September, the companysaid.

The trial is being conducted by Bone Care International, asubsidiary of Lunar Corp. Bone Care holds the patents on One-alpha and has exclusively licensed the rights to Deprenyl on aroyalty-free basis. James Doherty, Deprenyl president, said theToronto company obtained the rights in exchange for a$100,000 license fee and a 1990 investment of $500,000.Deprenyl (NASDAQ:DEPLF) holds a 14 percent interest in BoneCare.

Bone Health plans to begin a Phase III Canadian trial in 1993and, if successful, file for marketing approval in 1994. Thecompound would compete with estrogen replacement therapy,which is given in oral or transdermal patch form.

Deprenyl will issue to its shareholders of record on May 22 onewarrant for each Deprenyl Research share held. Each warrantwill entitle the holder either to buy one share of Bone Healthfor 25 cents between March 1, 1993, and May 7, 1993, or toredeem the warrant prior to its expiration for 17 cents.

If all warrants are exercised for common shares, Bone Healthwill raise $4.6 million.

Deprenyl shares were off 75 cents to $10.88 on Tuesday. -- KB

(c) 1997 American Health Consultants. All rights reserved.