8-K

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                                 UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549

                           ---------------------------

                                   FORM 8-K

             CURRENT REPORT FILED PURSUANT TO SECTION 13 OR 15(d) OF
                        THE SECURITIES EXCHANGE ACT OF 1934

                                 DATE OF REPORT
                 (DATE OF EARLIEST EVENT REPORTED): MARCH 9, 2001

                        ENCHIRA BIOTECHNOLOGY CORPORATION
               (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

          DELAWARE                     0-21130                    04-3078857
(State or other jurisdiction of   (Commission File Number)    (I.R.S. Employer
incorporation or organization)                               Identification No.)

                             4200 RESEARCH FOREST DRIVE
                             THE WOODLANDS, TEXAS 77381
                               (Address of principal
                                 executive offices
                                   and zip code)

                                  (281) 419-7000
                          (Registrant's telephone number,
                               including area code)

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ITEM 5. OTHER EVENTS

        On March 9, 2001, Enchira Biotechnology Corporation (the "Company")
issued a press release announcing that it received an unfavorable ruling in
its arbitration with Maxygen Inc. regarding its License and Development
Agreement with Maxygen dated May 19, 1997.

        The press release is filed as an exhibit to this Current Report on
Form 8-K and is incorporated by reference herein.

ITEM 7.  EXHIBITS

        Exhibit 99.1 -- Press Release dated March 9, 2001.



                                   SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                       ENCHIRA BIOTECHNOLOGY CORPORATION
Date: March 9, 2001
                                       By:  /s/ Paul G. Brown, III
                                            ----------------------------
                                            Paul G. Brown, III
                                            Vice President, Finance and
                                              Administration and Chief
                                                 Financial Officer

EX-99.1

                                                                    EXHIBIT 99.1

FOR IMMEDIATE RELEASE

CONTACT:
BMC Communications/Trout Group                 Enchira Biotechnology Corporation
Brad Miles x17 (for media inquiries)           Paul G. Brown, III
Jonathan Fassberg x16                          Chief Financial Officer
   (for investor inquiries)                    (281) 364-6140
(212) 477-9007


                     ENCHIRA LOSES ARBITRATION WITH MAXYGEN

COMPANY BELIEVES ARBITRATOR'S RULING INCONSISTENT WITH PATENT OFFICE ACTION

THE WOODLANDS, TX -- MARCH 9, 2001 -- Enchira Biotechnology Corporation
(NASDAQ: ENBC) announced today that it received an unfavorable ruling from
the arbitrator, retired Federal Judge Charles Renfrew, in its arbitration
proceeding with Maxygen, Inc. of Redwood City, California (NASDAQ: MAXY).
Judge Renfrew's opinion found that Enchira breached several provisions of the
License and Development Agreement (the Agreement) dated May 19, 1997 with
Maxygen with respect to Enchira's RACHITT(TM) and high throughput screening
technologies, but Judge Renfrew did not specify a remedy at this time.  Judge
Renfrew directed the parties "to meet and confer to see if they can arrive at
an agreement as to the appropriate remedy."  In the event the parties cannot
reach an agreement, the parties will reappear before Judge Renfrew, who will
then make a remedial determination.

"We are disappointed with the outcome of the arbitration and disagree with
Judge Renfrew's decision," said Peter Policastro, Enchira's President and
Chief Executive Officer.  "Indeed, we believe Judge Renfrew's decision is
internally inconsistent and rests on incorrect holdings on issues more
appropriately decided by the United States Patent and Trademark Office (PTO).
In fact, the PTO recently has reached a diametrically opposite decision in
its examination of Enchira's RACHITT(TM) patent application. We intend to
pursue every avenue to reverse Judge Renfrew's decision, but, in the
meantime, we intend to fully comply with his instructions to seek a quick
resolution with Maxygen as to the remedy for our alleged breach of the
agreement."

Judge Renfrew's decision was the result of an arbitration initiated by
Maxygen in April 2000 arising out of its collaboration with Enchira under the
Agreement that was terminated in 1998. Maxygen claimed that Enchira's alleged
breach of the Agreement enabled it to develop its RACHITT(TM) and high
throughput screening technologies.  Enchira denied from the outset that it
had breached the Agreement, and it continues to assert that it independently
developed its RACHITT(TM) technology after the collaboration ended.

Additional information about Enchira is available at its web site:
http://www.enchira.com.

THIS DOCUMENT CONTAINS FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN
RISKS, UNCERTAINTIES AND ASSUMPTIONS, INCLUDING BUT NOT LIMITED TO, THE
ABILITY TO RAISE ADDITIONAL FUNDS ON ACCEPTABLE TERMS, THE TECHNICAL
UNCERTAINTY AND RISKS ASSOCIATED WITH COMMERCIALIZATION OF THE COMPANY'S
TECHNOLOGY, THE MARKET ACCEPTANCE OF THE COMPANY'S TECHNOLOGY, THE COMPANY'S
DEPENDENCE ON



COLLABORATION PARTNERS, COMPETITION, AND THE ABILITY TO ENFORCE AND DEFEND
THE COMPANY'S PATENTS AND PROPRIETARY TECHNOLOGIES. SHOULD ONE OR MORE OF
SUCH RISKS AND UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS
PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE INDICATED IN
SUCH FORWARD-LOOKING STATEMENTS. FOR A DISCUSSION OF SUCH RISKS AND
ASSUMPTIONS, SEE "RISK FACTORS" INCLUDED IN THE COMPANY'S ANNUAL REPORT ON
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1999.

SOURCE: Enchira Biotechnology Corporation


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