ImmuLogic Pharmaceutical Corp. said Tuesday that MarionMerrell Dow Inc. has purchased 1 million shares of ImmuLogiccommon stock for $18 per share as part of the companies'collaboration to develop ImmuLogic's allergy therapeutics.

ImmuLogic (NASDAQ:IMUL) also received $1.16 million inconsideration for a three-year option that the company grantedMMD to acquire 250,000 shares of stock at an exercise price of$35 per share.

The Cambridge, Mass., company's Allervax compounds consistof an epitope, a piece of the individual protein that causes aspecific allergic reaction. The technology avoids the release ofhistamines that accompany traditional allergy shots.

The preliminary agreement was announced in November (seeBioWorld, Nov. 21). When the pact is finalized early next year,ImmuLogic will receive a $7 million license payment fromMMD.

Additional license and milestone payments could total another$25 million to $35 million.

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