Alliance Pharmaceutical Corp. of San Diego on Tuesday said it hasstarted Phase I testing of its oxygen carrier as a temporary redblood cell substitute.

Oxygent HT, a perfluorocarbon that transports oxygen, is beingdeveloped for patients whose surgery is anticipated to cause severebleeding. The initial safety testing will be in volunteers whosesurgery is not expected to lead to transfu-sion.

Alpha Therapeutic Corp. of Los Angeles, a subsidiary of Green CrossCorp. of Japan, already has U.S. approval to sell a perfluorocarbon-based oxygen carrier as an adjunct to balloon angioplasty.

Alliance shares (NASDAQ:ALLP) closed Tuesday at $35.25, down$2.25.

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