Subject: Syntex Signs Accord To Acquire 18% Stake In Genetic Systems
Date: Published: 8/20/85 38 lines
Source:  Wall Street Journal.  Copyright Dow Jones & Co. Inc. 

   Syntex Signs Accord
   To Acquire 18% Stake
   In Genetic Systems

   PALO ALTO, Calif. -- Syntex Corp. said it signed a
previously announced agreement to buy about 18% of Genetic
Systems Corp. for about $40 million.
   Under the agreement, which still must be ratified by
Genetic Systems'  shareholders, the two companies also will
enter into a long-term joint research program that will give
a Syntex unit distribution rights to products made by Genetic
Systems for diagnosis of acquired immune deficiency syndrome,
or AIDS, and other diseases.
   The two companies also said Genetic Systems, a
Seattle-based maker of medical diagnostic and treatment
products, granted Syntex an option to purchase Genetic
Systems' diagnostic operations, which comprise about half the
company's business.  The option would be exercisable from 1989
to 1992.
   For the first six months of 1985, Genetic Systems posted a
loss on operations of $4.3 million on revenue of $5 million.
But the company had net income of $1.8 million, or eight
cents a share, after including a special credit of $5.4
million from the sale of its share of a partnership.
   As previously reported, Syntex, a health-care concern,
will acquire about 4.7 million new Genetic Systems' common
shares at $8.50 each.  Syntex also will provide as much as $20
million in funding for the joint research program.

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