Enzon Inc. on Wednesday said it will collaborate with GenelabsTechnologies Inc. to evaluate the application of Enzon'sPegnology, a polyethylene glycol-based drug deliverytechnology, to Genelabs' GLQ223 treatment for AIDS.

Pegnology couples PEG strands to proteins that are used astherapeutic agents. This extends the blood-circulating life ofthe proteins and lowers their immunogenicity, said R. DouglasHulse, Enzon's vice president for business development.

GLQ223 (trichosanthin) has shown in preclinical studies theability to block HIV expression in acutely infected T cells andto selectively kill chronically infected macrophages. Genelabs ofRedwood City, Calif., began Phase II trials of the compound inSeptember.

Enzon, based in South Plainfield, N.J., also is working withSchering Corp. to create a PEG-modified form of Schering'sIntron A alpha interferon treatment for AIDS.

Enzon shares (NASDAQ:ENZN) closed at $10.38, up 38 cents onWednesday. Genelabs (NASDAQ:GNLB) lost $1 to $7.63. -- KH

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