The Liposome Co. Inc. of Princeton, N.J., has entered into anagreement with 3M in which the St. Paul, Minn., health careproducts manufacturer will evaluate liposomal gentamicin.

The company's liposomes, which deliver gentamicin tomacrophage cells residing in the liver and spleen, are in PhaseII trials for treating an opportunistic infection in AIDS. 3M haspurchased for an undisclosed sum an option to negotiate alicensing agreement on non-intravenous use of the liposomaldrug.

Liposome Co. (NASDAQ:LIPO) reported in June that theliposomal gentamicin, given intravenously, showed activityagainst Mycobacterium avium-intracellulare, an infection livingwithin the macrophages that causes night sweats, diarrhea andweight loss in 30 percent to 50 percent of AIDS patients in theUnited States.

Financial terms of the agreement were not disclosed, nor werethe potential clinical applications of the compound that haveinterested 3M. Liposome Co. stock picked up 88 cents Mondayto close at $11.38.

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