Xoma Corp. said Tuesday that it has expanded its 1990development and marketing agreement with Ortho Biotech toinclude its CD5 Plus and CD7 Plus immunoconjugates for Type Idiabetes.

Ortho, a division of Johnson & Johnson, agreed in March 1990to develop CD5 Plus and other immunoconjugates for graft-vs.-host disease (GvHD) and organ transplant rejection. Theagreement gave Ortho the opportunity to acquire rights toadditional uses of the immunoconjugates, except in thetreatment of rheumatoid arthritis.

Ortho will make an additional payment of an undisclosed sumto Berkeley, Calif.-based Xoma later this year.

CD5 Plus to treat Type I diabetes will enter Phase III trialslate this year or early next year. Ortho and Xoma will jointlyfund clinical development. CD7 Plus is in Phase I clinicals,funded by Xoma, for T cell-related cancers.

A Food and Drug Administration advisory panel recommendedmarketing approval of CD5 Plus to treat GvHD in June. Orthowill market the product under the name Orthozyme-CD5 Plus.

Xoma stock (NASDAQ:XOMA) closed down 50 cents on Tuesdayat $24.25.

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