A new protein therapy for the treatment and/or prevention of broncho- pulmonary dysplasia (BPD) in premature neonates is proposed. BPD is a long term inflammatory response to lung tissue damage initiated in the treatment of respiratory distress syndrome in premature infants, with surfactant and hyperbaric oxygen. The protein, called uteroglobin or CC10, is thought to be natural anti-inflammatory protein, present in the extracellular fluids of the respiratory tract. However, uteroglobin, which is normally present in the lungs of full term infants, is deficient in premature infants. CC10 has been reported to inhibit phospholipase A2's in vitro. These enzymes help initiate the inflammatory response by releasing arachidonic acid from cellular surfaces. Arachidonic acid gives rise to several inflammatory chemicals; cicosanoids, prostaglandins, and leukotrienes. The goal for Phase I is to produce about one gram of highly purified CC10, which will be tested in an animal model of neonatal respiratory distress syndrome and BPD in Phase II. PROPOSED COMMERCIAL APPLICATION The potential commercial applications for this protein include inflammatory disease conditions, including neonatal respiratory distress syndrome and broncho-pulmlonary dysplasia.