IB 367 is a protegrin (a lytic peptide originally isolated from pig leucocytes) that is in phase II of development with IntraBiotics Pharmaceuticals in Europe and the US for the treatment and prevention of oral mucositis. Oral mucositis is a common adverse effect of cancer therapies, in which the rapidly growing epithelial cells that line the mouth are destroyed. IB 367 targets Gram negative and positive bacteria and Candida albicans, and destroys these pathogens by attaching to their lipid membranes; this sterilises the oral environment and prevents the likelihood of secondary infection if the atrophied mucosa is traumatised.Pharmacia & Upjohn will collaborate with IntraBiotics Pharmaceuticals for development and marketing of IB 367. Pharmacia & Upjohn has licensed worldwide exclusive rights to IB 367, except in the US. Under the licensing agreement, Pharmacia & Upjohn will receive up to $US35 million in licensing fees, milestone payments and equity investments.It appears that IntraBiotics has also signed an agreement with Polypeptide Laboratories A/S of Denmark for the development of a manufacturing process and for the supply of IB 367.