Valentis Inc. will earn at least $1.1 million as part of an agreement to develop gene-based therapeutic products in collaboration with Schering AG.

Burlingame, Calif.-based Valentis on Friday entered a multiproduct license and option agreement with Schering, which will obtain exclusive, worldwide rights to use two Valentis platform technologies. Schering will apply Valentis' PINC polymer-based synthetic gene delivery and the GeneSwitch gene regulation technologies for use with up to two genes belonging to Schering. The Berlin-based company also will retain an option for nonexclusive rights to the PINC technology for a third gene.

The initial $1.1 million cash payment covers license and option fees, though additional financial details were not disclosed.

Valentis said its PINC polymer-based delivery technologies for intramuscular DNA administration potentially provides for higher and more consistent levels of antigen production. Its GeneSwitch technology is designed to allow researchers to control the level and duration of selected genes in transgenic animals and cell cultures, aiding in the identification and characterization of a gene's function.

The deal was Valentis' second million-dollar agreement last week.

On Monday it received $1 million for expanding an April 2001 license agreement with London-based GlaxoSmith-Kline plc for use of the GeneSwitch technology. GSK will have the ability to use the technology for research purposes in all of its facilities for up to 10 years. Valentis maintains rights to clinical applications of the GeneSwitch technology.

Internally, Valentis' most advanced product is VLTS-589, a plasmid-based synthetic gene therapy being developed to treat angiogenesis. A U.S. Phase I/II trial is under way to study the candidate in peripheral artery disease, and it has reached late-stage preclinical development to treat ischemic heart disease.

It is based on Valentis' third technology, GeneMedicine, a platform of nonviral gene delivery technologies. The GeneMedicine platform includes an array of nucleic acid delivery systems, including the cationic lipid portfolio.

Other preclinical candidates are being studied to treat anemia and angiogenesis. The EpoSwitch therapeutic for anemia, the lead product for the GeneSwitch platform, is being developed to allow control of erythropoietin protein production from an injected gene by an orally administered drug.

Valentis officials cold not be reached for comment.

Valentis' stock (NASDAQ:VLTS) gained 7 cents Friday, to close at 27 cents, or 35 percent.