Dynagen Inc. of Cambridge, Mass., has executed a definitiveagreement with Wellcome Foundation Ltd. of London todevelop new rapid diagnostic tests for tuberculosis.

Signing of the contract follows an agreement in principlereached between the two companies last December.

According to the final agreement, Wellcome will have exclusiveworldwide manufacturing and marketing rights, and will payan initial sum to Dynagen (NASDAQ:DYGN), as well as milestonepayments and royalties. The companies are not disclosing thevalue of the payments.

Tuberculosis is a highly contagious disease that is re-emergingworldwide primarily due to the AIDS epidemic. The WorldHealth Organization estimates that more than 20 millionreported cases of TB each year result in 3 million deaths.

The new tests are designed to provide earlier and more rapiddiagnosis of TB. More than 600 million TB tests are done peryear at a cost of between $1.50 and $5 each, said Jack Barlow,Dynagen's chairman of the board.

-- Rachel Nowak Washington Bureau Chief

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