Cangene Corp. has entered into a collaboration with Ares AdvancedTechnology Inc. to determine if the former's protein productionprocess can be used to develop a drug which is designed as a potentialtreatment for inflammatory and malignant diseases as well as septicshock.Jean Compton, Cangene's manager of investor relations, said financialdetails of the three-month feasibility study were not disclosed.Under terms of the agreement, Toronto-based Cangene will use itsCangenus technology to try to manufacture a protein-based drug beingdeveloped by Ares Advanced Technology, of Randolph, Mass., asubsidiary of the Switzerland-based Ares-Serono Group.Compton said the companies decided not to identify the potential drug,which has been under development by Ares-Serono for "some time."She also said no decision has been made on a possible jointdevelopment venture if Cangene's protein production process issuccessful.The Cangenus technology involves producing recombinant proteinsthrough a soil bacterium called Streptomyces. The bacteria secrete thetargeted protein as an active product, Compton said, making it simplerto purify and requiring no chemical modifications. _ Charles Craig

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