Under the terms of the agreement, the Shanghai Biowindow Gene Development Company and the Zaoqing Starlake Biology Technology Corporation will establish a new enterprise, the Shanghai Biostar Genechip Company, to develop several different kinds of DNA chip technologies.

Company officials said the deal involves a major investment of 500 million yuan (US$60.24 million), half of that in chip technology from Biowindow and the rest in capital from Starlake.

"Our cooperation will help us capture the domestic DNA chip market and find a market overseas for the technology," said Qin Yilong, vice president of the Shanghai United Gene Company, the parent company of Biowindow.

Researchers working on the DNA chip - 100,000 bits of the human genetic code on a wafer of silicon or glass - said the new technology will quicken and improve a doctor's diagnosis of cancer or other diseases.

DNA chips will enable clinicians and, in some cases, even patients themselves to quickly and inexpensively detect the presence of a whole array of genetically based diseases and conditions, including AIDS, Alzheimer's disease, cystic fibrosis, and some forms of cancer.

Biowindow, a privately-owned company, is at the forefront of human gene technology in the country. In September 1999, it produced the nation's first DNA chip, in additon to developing a chip designed to diagnose several types of hepatitis.

(www.eastday.com)