Biomatrix Inc. announced Wednesday that it has signed adefinitive distribution agreement worth close to $6 million withSyntex Pharmaceuticals International Ltd. to market Synvisc,Biomatrix's hylan product for treating osteoarthritis, in Europe.

Biomatrix (NASDAQ:BIOX) received an up-front payment of$200,000 from Syntex Pharmaceuticals in June when it signeda letter of intent on this agreement, and slightly more than $1million up-front for signing the definitive agreement, explainedGeorge Oram Jr., president and chief operating officer atBiomatrix of Ridgefield, N.J.

In addition, Biomatrix will receive approximately $4.5 millionfrom Syntex Pharmaceuticals as product approvals areobtained, Oram said.

Biomatrix retains the right to manufacture and supply theproduct to Syntex for an increasing percentage of net Synviscsales over time. The agreement is for a 10-year period, withoptions for renewal, Oram told BioWorld.

Syntex Pharmaceuticals, a subsidiary of Syntex Corp.(NYSE:SYN), receives marketing exclusivity for Synvisc inFrance, Britain, Scandinavia and Ireland once those countriesapprove the product for sale.

Biomatrix filed a product license application (PLA) for Synviscin the United Kingdom in November 1992, Oram said. "We'veheard back from the regulatory agency and are in the processof responding to the questions they raised," he added. The U.K.will serve as rapporteur in obtaining approval in other ECcountries.

Clinical trial data in the PLA for the U.K. include reports frommore than 1,400 knee-joint injections of Synvisc, which is achemically modified version of the naturally occurringsubstance hyaluron that acts as a lubricant and shock absorberin joints. Synvisc treatment involves a series of injections --usually three of them one week apart -- into the affectedarthritic joint. Osteoarthritis affects over 25 million peopleworldwide.

Biomatrix also filed a PLA for the product in Sweden in 1992and is currently "in discussions with the Swedish authorities,"Oram told BioWorld.

In the U.S., the company has completed clinical trials and is inthe process of preparing a premarketing approval application(Synvisc is regulated as a device in the U.S.).

Biomatrix is already marketing the product in Canada as ashort-term implant or substance. The company hasn't releasedany Canadian sales figures yet because it is still in the processof introducing the product, Oram explained.

Biomatrix reported cash, cash equivalents and marketablesecurities of about $11.5 million to $12 million for the thirdquarter ended Sept. 30, Oram said. The company currently hasabout 8.9 million shares outstanding.

Biomatrix's stock closed Thursday at $10.25 a share, up 13cents.

-- Jennifer Van Brunt Senior Editor

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