Genentech Inc. on Tuesday announced a collaborativeagreement with F. Hoffmann-La Roche Ltd., a subsidiary ofSwiss-based Roche Holding Ltd., for the internationaldevelopment and promotion of DNase to treat cystic fibrosisand chronic bronchitis.

Under the 10-year agreement, Genentech Europe, a whollyowned subsidiary of Genentech (NYSE:GNE), will be establishedusing DNase as its first product.

The subsidiary will focus on the promotion of DNase for cysticfibrosis. Roche, which owns 60 percent of Genentech, willassume the lead promotional role for the chronic bronchitisindication.

The companies will collaborate in the development andmarketing of DNase in Europe, sharing costs and profits.Genentech of South San Francisco, Calif., will supply productand receive milestone payments and technical support fromRoche. Genentech retains rights to DNase in the United States,Canada and Japan. Roche has an exclusive royalty-based licenseto sell DNase outside of those three countries and Europe.

Genentech Europe plans to file for European marketingapproval in early 1993.

Genentech and Roche also on Tuesday announced three R&Dcollaborations. Products discovered or developed under theagreements would be shared.

One agreement allows Genentech to screen Roche's chemicallibraries of small molecules for compounds. Areas ofdevelopment weren't specified.

Under the second agreement, Genentech will use its processdevelopment and manufacturing capability to produce a tumornecrosis factor receptor-immunoglobulin fusion protein fortreatment of septic shock.

The third collaboration combines the programs of Roche andGenentech in the area of inhibition of immunoglobulin E (IgE)to treat allergies.

Genentech is focusing its corporate research efforts in the areasof cardiovascular, immunology, endocrinology and neurobiologydisorders. Its shares rose 25 cents to $27.13 on Tuesday. --Karen Bernstein

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