Hybridon Inc. announced Thursday that it has entered into aresearch and development collaboration and licensingagreement with Hoffmann-La Roche Inc. and F. Hoffmann-LaRoche AG to develop antisense oligonucleotide compounds forthe treatment of hepatitis B and C viruses and humanpapilloma virus.

Roche will fund R&D conducted by the private Worcester,Mass., biotech company, commit its own personnel to theproject, and make milestone payments according todevelopment benchmarks.

In return, Roche will receive a royalty-bearing worldwideexclusive license to any products resulting from thecollaboration, while Hybridon will retain the manufacturingrights to those products.

Roche has also taken an equity position in Hybridon and iscommitted to a future equity investment. The companies didnot disclose any details of the financial aspects of theseagreements.

"These compounds are logical additions to Hybridon's productdevelopment portfolio, as the company's initial focus istargeting oligonucleotide chemistry to viral diseases," said E.Andrews Grinstead, Hybridon's chief executive officer.

And Jurgen Drews, the head of Roche's international R&D, said,"This access to antisense technology represents a necessarycomplement to Roche's strong research and developmentefforts in anti-viral chemotherapy."

The viruses targeted by this agreement are hepatitis B,hepatitis C and papilloma. But Hybridon is not the only biotechor antisense company to take aim at those particular diseaseagents. Isis Pharmaceuticals (NASDAQ:ISIP), for one, is alreadyin Phase II clinical trials on its antisense drug for treatinggenital warts, which are caused by papilloma virus. TheCarlsbad, Calif., company is also developing antisensenucleotides for treating hepatitis C virus with two Japanesecompanies, an alliance it formed last summer.

Hybridon has been in registration with the Securities andExchange Commission for an initial public offering since March1992. Meanwhile, "with the closing of this private round, thecompany will have raised over $30 million," Grinstead said.

-- Jennifer Van Brunt Senior Editor

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