California Biotechnology Inc. has received a Phase II smallbusiness innovation research grant of about $470,000 todevelop further its compounds that could help treat heartfailure and high blood pressure.

This is the second Phase II grant the Mountain View, Calif.,company has been awarded on its research into atrial peptideclearance inhibitors.

The new grant will help select a lead candidate among theinhibitors the company has been testing. Preclinical studiesshow that the inhibitors have desirable effects on the kidneysand the circulatory system.

Auricluin, Cal Bio's synthetic peptide, is in clinical trials foracute kidney failure and for kidney damage from contrastagents.

In a complementary approach to the use of its syntheticpeptide, Cal Bio (NASDAQ:CBIO) is collaborating with Bayer AGto develop orally active compounds that prevent the breakdownof natural atrial peptide. -- RF

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