By Charles Craig

Synaptic Pharmaceutical Corp. signed a potential $34 million collaboration with Warner-Lambert Co. for development of drugs based on Synaptic's work with receptors for galanin, a neurotransmitter that in high levels in the brain is thought to be associated with overeating.

Kathleen Mullinix, Synaptic's chairwoman, president and CEO, said the deal with Warner-Lambert, of Morris Plains, N.J., is in two parts. The first one will focus on discovering drug candidates that block and activate galanin receptors using cellular assays developed by Synaptic, of Paramus, N.J.

The companies will spend up to 18 months looking for compounds, with Warner-Lambert using the assays to screen its libraries and Synaptic creating its own compounds for testing.

Mullinix said Synaptic will not receive any money from Warner-Lambert until the start of the second part of the collaboration, which initially will cover three years and will involve development of the drug candidates discovered during the first phase of the agreement.

Synaptic will receive research funding and can require Warner-Lambert to make an equity investment. The amounts of the funding and equity purchase were not disclosed.

Synaptic also could receive up to $34 million in milestone payments for the first two compounds developed. Warner-Lambert has rights to the galanin receptors for all indications and Synaptic would receive additional funding for drug candidates beyond the first two. Synaptic also will be paid royalties on marketed products.

Galanin, a neuropeptide, is distributed throughout the central nervous system, gastrointestinal tract and other organs. Synaptic researchers said controlling levels of galanin with compounds that block or activate the neurotransmitter's receptors may provide potential treatment for obesity and a variety of other disorders, such as Alzheimer's disease, depression, pain and endocrine problems.

Synaptic already is targeting obesity in another collaboration with Novartis AG, of Basel, Switzerland, which focuses on neuropeptide Y receptors.

Synaptic also is working with Eli Lilly and Co., of Indianapolis, Merck & Co., of Whitehouse Station, N.J., and DuPont Merck Pharmaceutical Co., of Wilmington, Del., a joint venture between E.I. DuPont Co., of Wilmington, and Merck. *