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ALPHA 1'S SUPPLIER EXPERIENCES MANUFACTURING DIFFICULTIES

 BETHESDA, Md., Dec. 7 /PRNewswire/ -- Alpha 1 Biomedicals, Inc. (NASDAQ: ALBM) today announced that its contract manufacturer of Thymosin alpha 1 for sale by Alpha 1 to its licensees is experiencing unanticipated difficulties in the manufacturing process. As a consequence of these difficulties, Alpha 1 will be unable to supply product to SciClone Pharmaceuticals, Inc. in accordance with the delivery schedule requested by SciClone.
 Under a License Agreement entered into in 1990, SciClone holds a license from Alpha 1 to commercialize Thymosin alpha 1 in all countries of the world, other than the United States, Canada, Europe, Israel and Korea. Under the agreement, Alpha 1 is the sole supplier of SciClone's commercial requirements. The validity of SciClone's orders and the obligation of Alpha 1 to meet those orders in accordance with the delivery schedule established by SciClone currently is at issue in an arbitration proceeding between the two parties. In addition to the position that it has asserted in the arbitration, Alpha 1 believes that according to the terms of the License Agreement it is relieved of its delivery obligations during such time as the delay in deliveries is due to circumstances not within its control. However, if Alpha's interpretation of the License Agreement with respect to its delivery obligations is not sustained, the result could be the conveyance to SciClone of an exclusive, irrevocable, paid-up and royalty-free license for the manufacture, use and sale of Thymosin alpha 1 by SciClone in its territory. Such a result would have a material adverse effect on Alpha 1.
 Alpha 1 Biomedicals, Inc. is engaged in the development of pharmaceutical products for the treatment of chronic viral diseases, immune disorders and cancer. The Company's lead drug, Thymosin alpha 1, is currently in U.S. clinical trials for the treatment of chronic hepatitis B, chronic hepatitis C, and AIDS.
 -0- 12/7/93
 /CONTACT: Vincent F. Simmon, Ph.D., president and CEO of Alpha 1, 301-564-4400 or Anita Monteith-Dixon of Long Ridge Associates, 203-790-0647/
 (ALBM)


CO: Alpha 1 Biomedicals, Inc.; SciClone Pharmaceuticals, Inc. ST: Maryland IN: MTC SU:

LG -- NY019 -- 1202 12/07/93 10:31 EST
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Publication:PR Newswire
Date:Dec 7, 1993
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