Bermuda-based Corange Ltd. said yesterday that they still hoped to be able to discuss differences of opinion they have with US partner CellPro Inc.

Seattle-based CellPro is threatening legal action after claiming Corange appeared ready to renege on a $110-million deal.

Corange London Ltd. communications coordinator Ms Katharina Auer, said, "Corange's response to the CellPro press release is that the company (Corange) has clearly expressed its position to CellPro with regard to issues concerning the enforceability of various agreements between Corange and CellPro.

"Contrary to assertions made by CellPro, Corange has not breached these agreements. Corange has offered to engage in meaningful discussions with CellPro to address the outstanding issues between the two companies, and Corange hopes that CellPro will agree to enter into such discussions.'' CellPro was counting on Corange's substantial investment in the company, but said that Corange has now said they believe there are European anti-trust issues that may block it.

But officials from the US company are not convinced. They believe that Corange is using that as an excuse to kill the deal.

CellPro Inc. is a biotechnology company specialising in the development, manufacturing and marketing of proprietary, continuous-flow cell-selection systems for the use in a variety of therapeutic, diagnostic and research applications.

Their main product is Ceprate, which purifies bone marrow cells before transplants to cancer patients. The product is sold in 14 European countries and Israel.

Corange is a multi-billion dollar pharmaceutical and health care concern, the parent company of Boehringer Mannheim and DuPuy Orthopedics.

CellPro has said that Corange had told them that the diagnostics agreement was unenforceable and that the therapeutics collaboration violated applicable European antitrust laws, unless amended in accordance with the terms of the agreement.

Corange is said to have stated that because the diagnostics collaboration was unenforceable, CellPro would be unable to satisfy the conditions for closing the $60 million investment scheduled for this month under the equity agreement between the two parties.

CellPro disputed the Corange position and said that they would vigorously pursue the matter and call upon Corange to perform all of its obligations, including its second equity investment.