Carrington Laboratories Inc has formed a strategic partnership with Southern Research Institute of Birmingham, Alabama, to assist in the development and ultimate commercialization of Carrington's patented drug-delivery technology based on the natural polymer CR1013. The polymer is being developed to deliver a variety of drug candidates for topical, oral and injectable application in a multibillion-dollar market.

Dr. Kenneth M. (Bill) Yates, Carrington's vice president of research and development, added: "Southern Research is the ideal strategic partner to further advance our unique drug-delivery technology. Under this agreement, Southern Research's experience and expertise can be accessed to develop our own and selected third-party products utilizing our new technology. Southern may also bring designated third-party projects that could benefit from the technology strengthening our business development efforts."

Yates said the new technology is being developed to compete in the fast-growing drug delivery market, currently estimated to be in excess of $40 billion worldwide with expected growth to $70 billion by 2005. CR1013, a proprietary product owned by Carrington Labs, is covered by process and composition of matter patents with use patents issued and pending.

Under the three-year collaborative agreement with Southern Research Institute, Carrington will retain all product rights plus intellectual property rights to its existing technology as well as any discoveries made by Carrington or Southern Research, either jointly or individually, as a result of any project undertaken as part of the agreement. Southern Research will receive fees and royalties when undertaking certain specified projects on behalf of Carrington.

Carrington recently formed a new subsidiary, DelSite Biotechnologies Inc that will have responsibility for further research and development of CR1013. DelSite will operate separately from the present Carrington research and development programs and will oversee the strategic relationship with Southern Research.