Gynex Pharmaceuticals Inc. on Monday said it has reachedagreement with the Department of Veterans Affairs to useresults of two VA trials that employed the company's steroidoxandrolone in alcoholic hepatitis.

The Vernon Hills, Ill., company (NASDAQ:GYNX) said it willsubmit the data to the Food and Drug Administration as part ofits filing to obtain approval to market Oxandrin for this use.

The VA research indicates that Oxandrin can reduce mortalityat six months by 50 percent in patients with moderate tosevere hepatitis and malnutrition due to alcoholism.

The drug currently is distributed in the United States under atreatment IND to patients with constitutional delay of growthand puberty, and under similar conditions in Canada.

The company's stock rose 6 cents to $2.13 on Monday.

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