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LIDAK PHARMACEUTICALS SIGNS AGREEMENT IN PRINCIPLE FOR U.S. LICENSING AGREEMENT AND EXTENDS CLASS A WARRANT REDEMPTION DEADLINE

 LIDAK PHARMACEUTICALS SIGNS AGREEMENT IN PRINCIPLE FOR


U.S. LICENSING AGREEMENT AND EXTENDS CLASS A WARRANT REDEMPTION DEADLINE
 LA JOLLA, Calif., May 6 /PRNewswire/ -- LIDAK Pharmaceuticals (NASDAQ: LDAKU, LDAKA) today announced it has reached an agreement in principle for a U.S. licensing agreement for the clinical development, marketing and distribution of LIDAKOL(TM), its proprietary topical therapeutic drug being developed for the treatment of herpes, inflammatory skin diseases, burns and wounds. As a result of this development, the company has extended by one week the previously announced redemption date for its Class A Warrants to May 19, 1992. All Class A Warrants that have not been validly exercised on or before May 18, 1992, at 5 p.m. EDT, will be redeemed at $0.05 per warrant.
 Specific terms of the agreement in principle and the identity of the licensing partner, which is a joint venture between a major health products and pharmaceutical company, were not disclosed at this time. The parties are currently negotiating a final contract, but there can no assurance that a definitive agreement will be reached.
 Under the proposed agreement, the licensing partner will fund and conduct clinical trials and seek regulatory approval for the drug in exchange for marketing and distribution rights in the United States and Canada. The agreement, which excludes ophthalmic uses, would include a license fee and payments to LIDAK for the achievement of clinical trial milestones. If products are marketed, LIDAK will receive royalties on sales of the product in the United States, its territories and possessions, Puerto Rico and Canada.
 The warrant redemption deadline was extended to permit warrant holders to consider this new development when deciding to tender for redemption or exercise their warrants. Registered holders of the company's Class A Warrants are entitled to purchase at an exercise price of $1.50 one LIDAK Pharmaceuticals Class A Common Share and receive one Class B Warrant. Each Class B Warrant entitles the registered holder to purchase one LIDAK Pharmaceuticals Class A Common Share at an exercise price of $2.25. If all outstanding Class A Warrants are exercised, for which no assurance can be given, the company will receive gross proceeds of approximately $8.6 million, which will further strengthen its financial condition. If all Class A Warrants are redeemed, the aggregate redemption price will be $287,500.
 LIDAK Pharmaceuticals is attempting to develop pharmaceutical products for the health care industry. In addition to LIDAKOL, the company is developing Large Multivalent Immunogen technology as potential new therapies for cancer and viral diseases, and Free Fatty Acid technology as a possible clinical diagnostic assay for the prediction and monitoring of cancer and diabetes. The company has also developed a technology, known as hu-PBL-SCID, which permits the study of certain human immune system disorders, such as HIV, in animal models.
 -0- 5/6/92
 /CONTACT: Michael H. Lorber, VP and CFO of LIDAK Pharmaceuticals, 619-558-0364; or Susan Klein or Roger Pondel of Pondel Parsons & Wilkinson, 310-207-9300, for LIDAK Pharmaceuticals/
 (LDAKU LDAKA) CO: LIDAK Pharmaceuticals ST: California IN: MTC SU: LIC


EH-DM -- LA013 -- 7072 05/06/92 12:02 EDT
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Publication:PR Newswire
Date:May 6, 1992
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