Genetics Institute Inc. and Esex Chemie AG, a Schering-PloughCorp. affiliate, have agreed that Schering will register andmarket GI's macrophage colony stimulating factor (M-CSF) andinterleukin-11 (IL-11) in Europe, Africa and Latin America.

Under the agreement announced Monday, Schering will make aninitial payment and milestone payments to GI, as well asroyalties on eventual product sales. Cambridge, Mass.-based GIwill develop M-CSF in North America with SciGenics Inc., acompany recently spun off by GI. GI will develop IL-11 in NorthAmerica.

Other details of the agreement were not disclosed. GI stock(NASDAQ:GENI) closed at $31.38, up $2.38, on Monday.

M-CSF, which stimulates macrophages, a class of white bloodcells, is in Phase II clinical trials for treatment of cancer.Other potential indications include infectious diseases andheart disease. GI has received two U.S. patents for M-CSF andhas cross-licensed patents rights and potential orphan drugpositions with Cetus Corp.

IL-11, which is in preclinical development, is a blood cellgrowth factor that has shown activity in stimulating plateletcell growth. Platelets play an important role in bloodcoagulation. IL-11 may be useful in treating platelet depletiondue to chemotherapy, radiotherapy and otherimmunosuppressive therapies and conditions. -- KarenBernstein

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