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Wednesday May 27, 1998 CytoTherapeutics -Genentech pact ends LINCOLN, R.I., May 27 (Reuters) - CytoTherapeutics Inc. and Genentech Inc. (GNE - news) have agreed to end their collaboration to develop a product to treat Parkinson's disease because of disagreement over the best drug-delivery method, the companies said Wednesday. CytoTherapeutics said that as a result, it will cut its workforce by about 20 percent and focus on programs for pain control, ophthalmic diseases and conditions, and stem cell research and discovery. Genentech has asked CytoTherapeutics to redeem $4 million of the CytoTherapeutics shares acquired by Genentech as part of the collaboration, the companies said. CytoTherapeutics is reviewing the request, they said. The 1996 pact between the companies focused on the delivery of Genentech's growth factor, Neurturin, via CytoTherapeutics' encapsulated-cell technology. ``It is our judgment that encapsulated-cell delivery does not constitute the method of choice for delivery of Neurturin in Parkinson's disease,'' Joffre Baker, vice president of discovery research at Genentech, said in a statement. Agreements with Genentech relating to Huntington's disease and ALS, or Lou Gehrig's disease, remain in effect, CytoTherapeutics said. ``Looking ahead, we expect to restart our Phase II clinical trials for pain in Europe and expect to pursue several opportunities for collaborations related to our neural stem cell program in the neurodegenerative disease and ophthalmics areas,'' CytoTherapeutics Chief Executive Richard Rose said in a statement. -- Judith Richards, London, Ontario, Canada [log in to unmask]