DePuy group of companies, has announced a business alliance with US firm Protein Design Labs, Inc.

One part of the agreement involves Corange investing up to $75 million in PDL through the purchase of its common stock.

Under a separate license agreement, Corange will acquire certain marketing rights to several drugs being developed by PDL.

PDL stands to receive as much as $131 million, excluding royalties, if it achieves the targets laid down in the arrangement.

In a further development, PDL and Corange have also agreed to negotiate future agreements under which each company would manufacture and supply the other with certain products for use in clinical trials and potential future product sales.

Corange, with 1992 net sales of $3.2 billion, is the world's second largest producer of in-vitro diagnostic products and is a growing force in pharmaceuticals.

PDL, which is based in Mountain View, California, is developing human and humanised antibodies and other novel proteins for the prevention and treatment of disease.

The equity agreement provides that Corange will initially invest $30 million in PDL by buying 1.2 million newly-issued shares at $25 each, giving it an 8.1 percent stake in PDL on a fully-diluted basis.

In December, 1994, Corange will purchase a further $45 million worth of newly-issued PDL common stock at a price of $36.50 per share if the average closing price of PDL's shares during the first 11 months of 1994 is between $20.54 and $26.54.

This would leave Corange with a 15.2 percent of PDL in aggregate on a fully-diluted basis.

If the average closing price of PDL's shares falls outside this range, Corange will pay a 55 percent premium to the average closing price during the 11-month period.

Its $45 million investment would be subject to reduction if necessary in order to satisfy a limitation that Corange's total ownership of PDL will not exceed 21 percent on a fully-diluted basis.

The licensing agreement provides that Corange will acquire exclusive marketing rights outside North America and Asia to PDL's Human Anti-Cytomegalovirus Antibody and to PDL's SMART Anti-L-Selectin and SMART Anti-CD18 Antibodies, which have potential usefulness in blocking cell adhesion, an important factor in inflammatory diseases.

Corange will also obtain the North American co-promotion rights and exclusive marketing rights outside of North America for certain new cardiovascular and other products to be developed by PDL.

Corange will also acquire exclusive worldwide marketing rights to certain diagnostic antibodies.

Mr. Mark McDade, chief operating officer of Corange's therapeutic division, said: "This alliance is the cornerstone of our strategic plan to strengthen Boehringer Mannheim's therapeutics business worldwide.''