Donald E. Mosier has resigned as chief scientific officer and adirector of Lidak Pharmaceuticals Inc., citing disagreementswith the company over restructuring plans and scientificissues.

In his letter of resignation, dated Dec. 13, Mosier said, "I do nothave confidence that the Board and the management of Lidakas presently constituted will be able to lead the company out ofits current problems." Mosier also wrote that he disagreed withsome of the company's scientific claims or felt that they wereoverstated.

The La Jolla, Calif., company has just finished Phase I U.S. trialsof Lidakol for topical treatment of herpes and expects toinitiate Phase II trials in Europe in early 1992.

In a statement released by the company, Dr. David Katz,chairman and chief executive, said: "We were particularlydisturbed and surprised by the resignation of Dr. Mosier inview of the business and scientific plans reviewed at the lastboard meeting held December 10, 1991 which he appeared toaccept. Those plans included several specific recommendationsof an independent management consultant, Daniel J. Paracka ofthe Rand Group, who was present at the meeting. Dr. Mosierhad voted at a prior meeting to retain Mr. Paracka as thecompany's consultant."

At the meeting, according to Katz, the directors also acceptedanother consultant's recommendation that the companyproceed with clinical trials of Lidakol and consider submittingan additional investigational new drug application for thetopical application of Lidakol to burns.

Lidak shares (NASDAQ:LDAKA) lost 81 cents last weekfollowing the announcement of Mosier's resignation beforegaining back 6 cents on Friday to close at $1.19.

Last month, the board relieved Fred A. Espinosa of his duties aspresident and chief operating officer.

Dr. Eric Neibart, a New York physician, also resigned last weekas a director. According to Katz, the directors' departures areunrelated.

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