Ecogen Inc. has signed a worldwide gene licensing agreementwith Monsanto Co. to develop and market seeds containingEcogen's insecticidal genes derived from Bacillusthuringiensis.

The BT bacteria genes produce a protein toxic to insects, butharmless to mammals. Monsanto of St. Louis will use the genesto develop cotton, potatoes, tomatoes and corn resistant tocaterpillars and beetles.

Langhorne, Pa.-based Ecogen will receive license fees based onmilestones as well as royalties on sales. No other terms weredisclosed.

Ecogen doesn't anticipate commercialization of products fromthe agreement until the late 1990s, said Bruce Carlton, seniorvice president for research and development.

Ecogen shares (NASDAQ:EECN) closed at $11.88, down 13 cents,on Friday

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