Johnson Matthey Inc. has signed an agreement giving CytogenCorp. exclusive worldwide licensing rights to market cancerimaging products developed from Matthey's proprietarycompounds.

Matthey has developed a family of six aromatic hydrazine-based compounds that link technetium-99m radioisotope andmonoclonal antibody fragments using multiple technetium-nitrogen chemical bonds. The resulting product is more stablethan one produced by conventional direct labeling technology.

Technetium is used in nuclear medicine for imaging todiagnose for cancer, and the monoclonal antibody fragmentsserve as delivery vehicles.

In addition to increased stability inside the body, Matthey'slinkers are easier to formulate than linkers now on the market,said Cytogen spokeswoman Laura Hahn.

Cytogen and Matthey will collaborate on research anddevelopment. Cytogen plans to develop non-small cell lung andbreast imaging products that incorporate the technology.

The U.S. market totals about $200 million for breast imagingproducts and $100 million for non-small cell lung imagingproducts. Cytogen of Princeton, N.J., estimated it can capture10 percent to 30 percent of those markets, according to Hahn.

Matthey is a British-based advanced materials company with abiomedical division in Westchester, Pa., that is developingtechnology for applying precious and other metals topharmaceuticals.

Cytogen (NASDAQ:CYTO) closed at $16.75, up 13 cents, onWednesday.

-- Kris Herbst BioWorld Washington Bureau

(c) 1997 American Health Consultants. All rights reserved.