Glaxo Canada/IAF BioChem International

Glaxo Holdings subsidiary and Montreal-based immune disease R&D firm sign joint venture agreement to develop and commercialize IAF compounds for the treatment of cancer and viral diseases. Pursuant to an in-principle agreement signed in November, Glaxo Canada will purchase a $ 12 mil. (Canadian) equity stake in IAF at C$ 12 per share and will purchase one mil. additional shares over the next 18-months for a total investment of C$ 24 mil. Glaxo also has an option to purchase nearly 2 mil. additional IAF BioChem shares, which would increase its stake ot 20%. Under a separate agreement signed in January 1990, Glaxo Canada received worldwide rights to IAF BioChem's BCH-189 compound, which is being evaluated as a treatment for AIDS.