Lidak Pharmaceuticals Inc. on Monday said it has signed alicensing agreement with Brocades Pharma BV under whichBrocades will clinically develop, market and distribute inEurope Lidak's Lidakol topical anti-herpes therapeutic.

Lidak in October completed Phase I U.S. trials of Lidakol fororal and genital herpes. Brocades of the Netherlands and Lidakare designing Phase II studies to be conducted in Europe, whichshould begin in two or three months, said Dr. David Katz, Lidakchairman and chief executive officer.

Lidak anticipates market introduction in Europe by the end of1994.

Brocades, a Yamanouchi Group company, will cover the costs ofclinical trials, regulatory approvals, manufacturingdevelopment and scale-up, and marketing and distribution,subject to milestone performance by Lidak. La Jolla, Calif.-based Lidak will receive sales royalties.

Lidak is looking for corporate partners for other markets,including the United States. Lidak stock (NASDAQ:LDAKA)closed up 38 cents at $1.50. -- Karen Bernstein

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