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Executive Summary

ROCHE FUNDING TRIALS OF CAL BIO NASAL DRUG DELIVERY STSYEM for use with Roche's antiobesity analog and a growth hormone product. Under an agreement with California Biotech, Roche's products will be developed for use in Cal Bio's Nazdel nasal drug delivery system, Cal Bio announced in a June 3 release. According to the release, Cal Bio will conduct initial development and preclinical trials that will be funded by Roche. In turn, Roche will have exclusive worldwide marketing rights for any products resulting from the collaboration. The amount of funding and additional terms of the agreement were not disclosed. The Roche collaboration is Cal Bio's third agreement with a major pharmaceutical firm for development of products in the Nazdel nasal delivery system. Last fall, Cal Bio announced an agreement with Lilly covering the clinical development and marketing of insulin in the Nazdel system. The product, Nasalin, is currently in Phase I trials, Cal Bio said. Also, J&J's Ortho division is evaluating the Nazdel system with LHRH products for contraception and other uses under a licensing agreement. In addition, Cal Bio has an agreement with American Home Products for development and marketing of renin inhibitors and Auriculin (atrial natriuretic factor), currently in Phase II trials for congestive heart failure.

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