MBI and Shionogi to cancel agreement

Ultrasound contrast agent developer Molecular Biosystems of San

Diego announced last week that it has exchanged breach-of-contract

notices with its Japanese licensee, Shionogi & Co. of Osaka.

MBI said that the two companies have been unable to agree on terms

for canceling their relationship, which covers distribution of

MBI's Albunex agent in Japan, Taiwan, and South Korea. MBI claims

that Shionogi has not diligently pursued the development and distribution

of Albunex in its territory, while Shionogi claims that MBI supplied

it with batches of Albunex that fail to meet adequate quality

standards. MBI said that it will pursue another licensee for Albunex

in the territory.