BOULDER, Colo. -- Synergen Inc. has become the first of threecompeting companies to obtain a patent relating to the processof making ciliary neurotrophic factor (CNTF).

Synergen said that CNTF may be useful in preventing damageto peripheral nerve cells caused by diabetes andchemotherapy. Such nerve damage is now untreatable.

The company on Tuesday said it has obtained U.S. Patent4,997,929 for DNA sequences and methods of making CNTF.Two other biotech companies, California Biotechnology Inc. ofMountain View, Calif., and Regeneron Pharmaceutical Inc. ofTarrytown, N.Y., are also working on CNTF. The product is inearly-stage research at all three companies, but Synergen is thefirst of the three to attain a clear patent position, said DavidStone, a biotech analyst at Cowen & Co. in Boston.

"Based on Synergen's press release, it appears that bothSynergen's and Regeneron's patent claims cover the sameinventions," said Paul Lubetkin, Regeneron's general counsel."If this is correct, then the question can only be resolved overtime in accordance with the rules of the Patent Office."

Regeneron has licensed CNTF from the Max Planck Institute ofMunich, Germany, and has filed a patent application with theU.S. Patent and Trademark Office. The company declined todiscuss its patent position further because it has filed aregistration statement for an initial public offering with theSecurities and Exchange Commission.

Synergen, which is also in registration, was also unavailable forcomment.

Cal Bio has licensed the pure protein from the University ofCalifornia, San Diego. "We're still working with UCSD to get apatent on the pure protein," said Rick Redding, manager offinancial planning at Cal Bio. Cal Bio is developing CNTF with aneye to licensing it to a partner.

It's still unclear whether any company will obtain a patent onthe protein itself, Stone said, adding that if Synergen did, itwould have a lock on CNTF.

Synergen's stock (NASDAQ;SYGN) closed Tuesday at $38.50, up$3.25. -- KB

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