Applied Microbiology Inc. said it has found that its Ambicinantibiotic kills the bacterium that has been implicated instomach ulcers and in some stomach cancers.

Helicobacter pylori has been identified in stomachinflammation and ulcers, and as a possible link to 60 percent ofstomach cancers. The bacterium resists currently availabledrug therapy, the company said.

Ambicin has been used against the bacterium in laboratorycultures. Since the compound has been shown safe wheningested, the New York company believes it should be able tomove the product quickly into clinical trials. A patentapplication has been filed on this new use for the anti-microbial.

The company (NASDAQ:AMBI), which estimates that the for anti-ulcer, heartburn and stomach self-medicationsis up to a billion dollars, said the product could have both over-the-counter and prescription applications.

The company currently is marketing Concept, an Ambicin-based microbial peptide, as an external dip to prevent bovinemastitis. Its stock closed Thursday at $4.75, down 25 cents.

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