Genetic Therapy Inc. has signed a cooperative research anddevelopment agreement (CRADA) with the National Institutesof Health to research the development of gene therapytreatments for pulmonary diseases such as cystic fibrosis andhereditary emphysema.

Dr. Ronald G. Crystal, head of the pulmonary branch of theNational Heart, Lung and Blood Institute (NHLBI) will serve asprincipal investigator. Crystal and his colleagues have adaptedadenovirus vectors to express in rats the protein that isdeficient in patients with hereditary emphysema.

The Gaithersburg, Md., company is developing delivery systemsfor human gene therapy for genetic and acquired diseases, andhas supplied vectors used in every approved human trialinvolving gene transfer.

The collaborators each will contribute a minimum of threefull-time researchers to the project. The company will havecertain rights to ownership or licensing of technologyresulting from the project.

The company's stock (NASDAQ:GTII) closed Tuesday at $19.25,down $1. -- Kris Herbst

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