Alpha 1 Biomedicals Inc. said Monday that it has received a $1million order for Thymosin alpha 1 from its Italian licensee,Sclavo S.p.A. The order is the Washington, D.C., company's firstproduct sale.

Thymosin is a synthetic version of a natural thymic hormonethat plays a role in modulating the immune system.

Sclavo filed last July for Italian marketing approval ofThymosin to treat several immunodeficiency diseases. Itexpects a decision by midyear, according to Alpha 1(NASDAQ:ALBM). Alpha 1 will manufacture and supply bulkthymosin and will receive manufacturing revenues and salesroyalties.

Thymosin is in Phase III U.S. trials as a treatment for chronichepatitis B, and in combination with alpha interferon fortreatment of chronic hepatitis C.

Alpha 1 and Sclavo have also modified their 1986 agreement toextend Sclavo's territory beyond Italy into Spain and Portugaland to permit Sclavo to sublicense Thymosin within itsterritory.

Alpha 1 shares closed at $16.25, down 75 cents, on Monday.

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