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Biotech / Medical : Zonagen (zona) - good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Dauntless who wrote (1592)	1/9/1998 8:54:00 AM
From: F. Jay Abella, III	Read Replies (1) \| Respond to of 7041

From Asensio today NEW YORK, Jan. 9 /PRNewswire/ -- The following was issued today by Asensio & Co: Zonagen, Inc. (OTC: ZONA - news) has been charged by its former Director of Immunology with making false discovery claims and preparing and filing a fraudulent patent application with the United States Patent and Trademark Office (''PTO''). The charges are included in a recently filed lawsuit, which Zonagen has failed to disclose. The lawsuit shows that Zonagen filed a patent application for a product it called ImmuMAX knowing that it was actually a common compound called Chitosan and that two U.S. patents already existed for the same use. Importantly, Zonagen's former senior executive also charges that even after its patent application had been declined, Zonagen attempted to sell or license ImmuMAX to several companies including Schering-Plough (NYSE: SGP - news). The lawsuit asserts in great detail that Zonagen had no proprietary right to ImmuMAX, and that Zonagen's attempts to sell rights to its use were fraudulent. The lawsuit further charges that Schering-Plough was advised of the fraud in a letter dated July 5, 1995. Zonagen has failed to disclose that its ImmuMAX patent application has been rejected by a PTO examiner. On the contrary, Zonagen continues to claim that it discovered ImmuMAX and that it ''intends to out-license'' its ImmuMAX technology. These representations are included in Zonagen's prospectus dated July 22, 1997 and its Form 10K for December 31, 1996.