The Liposome Co. Inc. said late Wednesday that the start ofPhase III trials of its amphotericin B lipid complex have beendelayed because some batches of the drug were out ofspecification.

The Food and Drug Administration has requestedmanufacturing and production specification data beforeallowing the trials of the anti-fungal against cryptococcalmeningitis to resume.

The drug is licensed to Bristol-Myers Squibb, which ismanufacturing the drug and conducting clinical trials. Trialswere slated to begin this quarter.

Princeton, N.J.-based Liposome's shares (NASDAQ:LIPO) closeddown 38 cents on Wednesday at $9.75.

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