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                                                                  EXHIBIT  10.39
                                                                           -----

  CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
             EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.

THIS AGREEMENT dated 4 May 2001 (the "EFFECTIVE DATE") is made BETWEEN:

(1)  ISIS INNOVATION LIMITED, a company registered in England (No. 02199542),
     whose registered office is at University Offices, Wellington Square, Oxford
     OX1 2JD, England ("LICENSOR"); and

(2)  V.I. TECHNOLOGIES, INC., a company registered in Delaware, whose principal
     office is at 134 Coolidge Avenue, Watertown, MA  02472 (the "LICENSEE").

1.   SUBJECT MATTER

This Agreement relates to the following intellectual property and know-how
(collectively, the "LICENSED TECHNOLOGY"):

     1.1  the inventions (the "INVENTIONS") described in:

          (a)  [*****]

          (b)  [*****]

          (c)  [*****]

          (d)  [*****]

               (together, the "APPLICATIONS") and any divisional, continuation,
               continuation-in-part and foreign equivalents thereof, as well as
               any United Kingdom and foreign patents issued thereon or
               reissues, reexaminations or extensions thereof;

     1.2  confidential information so communicated to the Licensee, and
          concerned with or related to the Inventions or the practice of the
          Inventions; and

     1.3  technology so communicated to the Licensee pursuant to clause 3.3 of
          this Agreement.

2.   GRANT

The Licensor grants to the Licensee an exclusive (subject to the terms of clause
3.2) license (the "LICENSE") to use the Licensed Technology for the term of this
Agreement worldwide in the development, production, sale, leasing and other
commercial exploitation of any products and services (the "LICENSED PRODUCTS",
an expression which shall be taken to mean and include only products and
services entirely or partially produced by means of, with the use of or
comprising the Licensed Technology) in the field of prion diagnostics and ex-
vivo prion removal related products and processes for food, agriculture, human
and veterinary applications (the "FIELD").  The Licensee recognises that this
Agreement confers no rights in relation to products intended or adapted for
other fields.

The License shall extend to all countries in the world apart from those excluded
through the operation of the second last sentence of clause 3.5 and clause 3.6.

3.   UNDERTAKINGS BY THE LICENSOR

     3.1  The Licensor will not license other undertakings to exploit the
          Licensed Technology in the Field. The Licensee recognises that this
          degree of exclusivity relates strictly to the Field; thus the
----------------
Confidential materials omitted and filed separately with the Securities and
Exchange Commission.  Asterisks denote such omissions.

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          Licensor may license other undertakings within other fields
          ("ADDITIONAL LICENSES"). The Licensor must not, however, enter into
          Additional Licenses without first inviting the Licensee to make an
          offer in writing in respect of the Additional Licenses. The Licensor
          will, however, be free to invite other undertakings to make an offer
          in respect of the Additional Licenses if the Licensee:

          (a)  does not make an offer in writing with respect to the Additional
               Licenses within 21 days of the invitation by the Licensor; or

          (b)  does not conclude negotiations of the terms of any Additional
               License for which it makes an offer under this clause within 90
               days of the invitation to the Licensee to make an offer in
               writing in respect of the Additional License (which negotiations
               will be conducted in good faith); or

          (c)  makes an offer in respect of the Additional Licenses and such
               offer is not acceptable to the Licensor in its absolute
               discretion (having considered and discussed such offer with the
               Licensee in good faith) and the Licensor communicates its
               decision to the Licensee in writing within 14 days of receipt of
               the Licensee's offer.

          In addition to the above, the Licensor shall not accept any third
          party offer for Additional Licenses unless it has first notified the
          Licensee in writing of the principal terms of such offer to the extent
          that it is able under any applicable confidentiality obligations
          (which the Licensor shall use all reasonable endeavours to ensure do
          not extend to the principal terms of any offer). The Licensee shall
          have 30 days to match the principal terms of the third party offer,
          failing which, the Licensor shall be free to accept such third party
          offer (provided that it is on no less favorable terms).

     3.2  The Licensor will not exploit the Licensed Technology in the Field.
          However, the Licensor reserves the right to grant to the University of
          Oxford (the "UNIVERSITY") the right for the University and every
          employee, student, agent and appointee of the University to use and
          publish the Licensed Technology for academic and research purposes
          only (irrespective of field, but without the right to grant
          sublicenses to the Licensed Technology in the Field), and this will
          include the right for the University to use the Licensed Technology as
          enabling technology in other research projects (including projects
          which benefit from third-party funding, but excluding any such
          projects that may require the University to grant licenses to the
          Licensed Technology in the Field). The Licensor will ask the
          University to submit material intended for publication to the Licensee
          in writing not less than sixty (60) days in advance of the submission
          for publication. The Licensee may request that submission for
          publication be delayed if such delay is necessary in order to protect
          the Licensee's rights relating to Licensed Products, including
          requesting that a patent application be filed. A delay imposed on
          submission for publication as a result of a request made by the
          Licensee shall not exceed three (3) months from the date of receipt of
          the material by the Licensee, although the Licensee may ask for
          additional delay in the rare event that intellectual property rights
          would otherwise be lost. The Licensor will ask the University to
          delete any Licensee confidential information from the publication upon
          request by Licensee. Notification of the request for delay in
          submission for publication must be received by the Licensor within
          thirty (30) days after the receipt of the material by the Licensee,
          failing which the Licensor shall be free to assume that the Licensee
          has no objection to the proposed publication. Nothing in this
          Agreement shall prevent any registered student of the University from
          submitting for a degree of the University a thesis based on the
          Licensed Technology, the examination of such a thesis by examiners
          appointed by the University, or the deposit of such a thesis in a
          library of the University in accordance with the relevant procedures
          of the University.

     3.3  The Licensor will communicate to the Licensee any improvements which
          the University makes to the Licensed Technology of which the Licensor
          is aware and which are relevant to the Field. An improvement for this
          purpose and for the purpose of clause 4.4 shall be taken to be any
          development of the Inventions which, if commercially practised, would
          infringe and/or be covered by a claim being prosecuted or requested by
          Licensee to be prosecuted in the Applications referred to in clause
          1.1, or by a valid claim of an unexpired patent which issues in
          response to those Applications.

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     3.4  The Licensee will communicate to the Licensor any commercial
          opportunity to exploit the Licensed Technology within the Field of
          which the Licensee is aware but which the Licensee has determined that
          it does not which to exploit. Upon giving notice of the commercial
          opportunity to the Licensor, the parties will use their best
          endeavours to negotiate and agree the terms of an agreement amending
          this License to allow the Licensor to exploit the commercial
          opportunity subject to the protection of the Licensee's commercial
          position and the Licensor providing a reasonable return to the
          Licensee. If the parties do not reach agreement on the terms of the
          agreement, the Licensor will refer the dispute for final determination
          to an expert agreed by the parties or in default of agreement
          appointed by the President of the Law Society of England and Wales.

     3.5  The Licensor shall be responsible for filing, prosecuting, renewing
          and defending such patent, design, copyright, mask work and other
          registrations as may be available for the protection of the Licensed
          Technology, using counsel reasonably acceptable to Licensee. Licensor
          shall keep Licensee informed regarding the status of all patent
          applications and patents comprising the Licensed Technology and
          Licensee shall be provided with a reasonable opportunity in the
          circumstances to review and comment upon any such patent applications
          and all papers and instruments filed therewith in advance of their
          filing, provided that the Licensor may take all necessary steps to
          file, prosecute, renew and defend such patent, design, copyright, mask
          work and other registrations notwithstanding that the Licensee has not
          given the Licensor comments on such patent applications or other
          papers and instruments. The Licensee will indemnify the Licensor
          against all costs (including lawyers' and patent agents' fees and
          expenses), claims, demands and liabilities arising out of or
          consequent upon such activities. The Licensor will invoice outgoings
          of this nature as and when they are incurred, and the Licensee will
          settle each invoice within thirty days after receipt.

          Well prior to the Applications reaching the national phase, the
          parties will consult over the countries to be covered.  If the
          Licensor believes a patent may be granted in a country but the
          Licensee is unwilling to indemnify the Licensor against the cost of
          prosecuting the Applications there, the country in question shall be
          removed from the scope of this Agreement.  If the Licensor determines
          on a country-by-country basis that it will not, for any reason, file,
          prosecute or maintain any patent application or patent within the
          Licensed Technology, it will promptly notify Licensee of its decision
          and Licensee shall thereafter have the right but not the obligation to
          undertake such filing, prosecution and maintenance at its own expense.

     3.6  Each party will inform the other party of any misappropriation or
          infringement of the Licensed Technology in the Field of which such
          party becomes aware. Licensee shall have the first right, but not the
          obligation, to take legal action, at Licensee's expense, against any
          misappropriation or infringements of the Licensed Technology of which
          either party becomes aware, provided that the Licensee shall first:
          (a) provide the Licensor with an indemnity in terms satisfactory to
          the Licensor against all costs (including lawyers' and patent agents'
          fees and expenses), claims, demands and liabilities arising out of or
          consequent upon such activities; and (b) agree with the Licensor the
          terms on which any damages or other recovery are to be shared with the
          Licensor. Licensee may include Licensor as a party in such legal
          action.

          In the event Licensee declines to commence legal action against any
          misappropriation or infringement of the Licensed Technology, Licensor
          shall have the right, but shall not the obligation, to take legal
          action, at Licensor's expenses.  If the Licensor takes such legal
          action, the country or countries where the infringement or
          misappropriation allegedly occurred and the country or countries where
          the Licensee incurs any substantial loss or damage as a result of the
          infringement or misappropriation, whether on sales or otherwise, shall
          be removed from the scope of this Agreement, unless:

          (i)  there is no reasonable evidence to demonstrate that the alleged
               infringement or misappropriation is (or would do so, if allowed
               to continue) substantially prejudices sales of the Licensed
               Products in any country worldwide; or

          (ii) in the opinion of independent legal counsel with experience in
               this general area of technology, there is no reasonable prospect
               of being successful in any legal action in respect of such
               alleged infringement or misappropriation.

          In any legal action instituted by either party under this clause 3.6,
          the other party shall, at the request and expense of the party
          initiating such suit, cooperate in all respects and, to the extent

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          possible, have its employees testify when requested and make available
          relevant records, papers, information, samples, specimens, and the
          like.

     3.7  The Licensor represents and warrants, to the best of its knowledge,
          that (a) it has the full power to enter into this Agreement, to carry
          out its obligations under this Agreement and to grant the exclusive
          rights and licenses to Licensee herein; and (b) it has not previously
          granted and shall not grant to any third party any rights which are
          inconsistent with the rights granted to Licensee herein.

4.   UNDERTAKINGS BY THE LICENSEE

     4.1  Subject to clause 4.2, the Licensee will use its best endeavours not
          to divulge to third parties such of the know-how communicated by the
          Licensor pursuant to this Agreement as has not become publicly known
          without the fault of the Licensee or as a result of any act or
          omission of a third party who received such know-how directly or
          indirectly from the Licensee or its sub-licensees or is not disclosed
          in a patent or published patent application included in the Licensed
          Technology (the "CONFIDENTIAL TECHNOLOGY").

     4.2  Except as set forth in clause 10.2, the Licensee will not assign the
          License but may grant sub-licenses, and may disclose to sub-licensees
          such of the Confidential Technology as it necessary for the exercise
          of the rights sub-licensed. No sub-license will carry any right to
          sub-sub-license. Immediately following the grant of each sub-license,
          the Licensee will forward to the Licensor in writing a note of the
          name and address of the sub-licensee, a description of the technology
          sub-licensed and its intended applications, and confirmation of the
          duration of the sub-license. By controlling the wording of its
          contracts with sub-licensees, the Licensee will ensure that
          obligations and conditions which are substantially similar to those
          recorded in this Agreement, and sufficient to protect the security of
          the Confidential Technology, the intellectual property rights in the
          Licensed Technology, and the interests of the Licensor, are imposed on
          every sub-licensee; and that in no circumstances do the terms of any
          sub-license in force from time to time conflict with the terms of this
          Agreement.

     4.3  The Licensee will not exploit the Licensed Technology after the
          expiration or termination of this Agreement, insofar as the Licensed
          Technology is still patented or secret; provided that this sub-clause
          shall not prevent the Licensee from working an expired patent which
          can be worked by all other manufacturers.

     4.4  The Licensee shall grant the University and every employee, student,
          agent and appointee of the University the right to use and publish, on
          a royalty-free basis, any improvement to or new application of the
          Licensed Technology made or devised by Licensee and claimed in an
          issued patent or published patent application, for internal academic
          and research purposes only. The Licensee will communicate any such
          improvement or new application to Licensor in writing and the
          provisions of clause 3.2 shall also apply to the information disclosed
          by the Licensee under this clause.

     4.5  In the event of the Confidential Technology becoming publicly known as
          a result of action by the Licensee or as a result of any act or
          omission of a third party who received the Confidential Technology
          directly or indirectly from the Licensee or its sub-licensees, the
          Licensee will continue paying royalties under clause 5, until the end
          of this Agreement, without prejudice to the payment of any additional
          damages in the event of the Confidential Technology becoming publicly
          known as a result of breach of this Agreement.

     4.6  The Licensee will be responsible for the design and construction of
          the Licensed Products and the Licensor shall have no responsibility or
          liability in that respect.

     4.7  The Licensee will ensure that the Licensed Products and the packages
          associated with them are marked suitably with any relevant patent or
          patent application numbers to satisfy the laws of each of the
          countries in which the Licensed Products are sold or supplied and in
          which they are covered by the claims of any patent or patent
          application.

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5.   ROYALTIES

     5.1  The Licensee agrees to pay to the Licensor:

          (a)  on the signature of this Agreement, the sum of [*****];

          (b)  on the first anniversary of the Effective Date, the sum of
               [*****];

          (c)  on the second anniversary of the Effective Date and each
               subsequent anniversary of the Effective Date until the Licensee
               has filed an Investigation New Drug application (or any foreign
               equivalent) or, where such an application is no longer available,
               its equivalent application, for the first Licensed Product, the
               sum of [*****].

     5.2  For so long as any Licensed Products are used or marketed by the
          Licensee, the Licensee will pay to the Licensor a royalty equal to the
          percentage prescribed in the following table of gross revenue of the
          Licensee in respect of Licensed Products for the range of gross profit
          margins achieved by the Licensee of all such Licensed Products in each
          year of this agreement ("LICENSE YEAR"):

               Range of gross profit margins      % gross revenue
               Less than 50%                          [*****]
               Between 50% and up to 70%              [*****]
               Above 70%                              [*****]

          Where a Licensed Product is marketed in combination with other
          products or materials, the relative proportion of the gross revenues
          of the Licensed Product contained in the combination product shall be
          agreed upon in advance of the combination product launch by the
          Licensee by negotiations in good faith between the parties.  The
          parties agree to determine the appropriate proportion of the gross
          revenues within thirty (30) days after the Licensee notifies the
          Licensor in writing of the intent to launch a new combination product
          so as not to delay the first sale of such combination product.  Should
          the parties fail to agree on the appropriate proportion of gross
          revenues, the dispute shall be settled in London by an arbitrator.
          The arbitrator will have no prior association with either the Licensor
          or the Licensee and/or be otherwise acceptable to both such parties.

     5.3  For so long as the Licensee sub-licenses the Licensed Technology, the
          Licensee will pay royalties equal to [*****] of gross revenues
          (including up-front and milestone payments) received by the Licensee
          from its sub-licensee's in respect of each sub-license.

     5.4  The Licensee agrees to pay to the Licensor (the "MILESTONE PAYMENT")
          the amount prescribed in the following table (the "MILESTONE AMOUNT")
          within 30 days of the date on which each of the milestones set out in
          the following table occur or is first achieved by the Licensee or any
          of the Licensee's sub-licensees (the "MILESTONES"):

                           Milestone                              Amount

          Each Investigational New Drug application (or where     [*****]
          such an application is not available, its equivalent)
          filed for each Licensed Product (payable once per
          Licensed Product regardless of the number of
          applications filed worldwide)
----------------
Confidential materials omitted and filed separately with the Securities and
Exchange Commission.  Asterisks denote such omissions.

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                           Milestone                              Amount

          Each regulatory approval for commercial use of each     [*****]
          Licensed Product (payable once per Licensed Product
          regardless of the number of approvals worldwide)

     5.5  The Licensee shall provide the Licensor with a royalty report within
          thirty (30) days after the close of each License Year for each
          Licensed Product marketed commencing in the first License Year in
          which the Licensed Products are marketed, and for each Licensed
          Product brought into use by or within the groups of the License. Each
          report shall state the gross profits and gross revenues received and
          provide a calculation of the royalties due, and shall be accompanied
          by payment to the Licensor of the royalties due.

     5.6  In marketing the Licensed Products, the Licensee will not accept or
          solicit any non-monetary consideration without the prior written
          consent of the Licensor. The use by the Licensee of a commercially
          reasonable quantity of Licensed Products for promotional sampling
          shall not violate this prohibition.

     5.7  If the Licensee is obliged to pay royalties to third parties (other
          than the Licensee's parent, subsidiary, associated or affiliated
          companies), for the right to develop, make, use, sell or import a
          Licensed Product, then the Licensee shall be entitled to deduct from
          the royalty payment due to the Licensor the royalty payment actually
          made to such third party, up to a maximum of [*****] of the royalty
          payment due to the Licensor provided that the minimum royalty to be
          received by the Licensor under clause 5.2 will be the greater of
          [*****] of gross revenues of the Licensor or one half of the
          percentage of gross revenues payable in respect of each range of gross
          profit margins set out in clause 5.2.

     5.8  All payments provided for under this clause 5 shall be made to the
          Licensor in pounds sterling without any deductions apart from any tax
          which is required to be withheld under applicable local law. Any
          change of currency made to calculate sales for the purpose of this
          clause 5 shall be determined as at the last business day of each
          quarter, using the average of the average daily buying and selling
          rates quoted by Barclays Bank plc during that quarter. Where the
          Licensee is required to withhold tax under applicable local law, the
          Licensee shall deduct such tax, pay it to the relevant taxing
          authority, and supply the Licensor with a Certificate of Tax Deduction
          at the time of payment to the Licensor. The parties shall co-operate
          under any applicable Double Taxation Treaty so that, if possible,
          payments are made gross or, if payment gross is not possible, the
          Licensor obtains appropriate relief under the Treaty.

     5.9  Where the Licensee is obliged to make a payment to the Licensor under
          this Agreement which attracts value-added, sales, use, excise or other
          similar taxes or duties, the Licensee shall be responsible for paying
          such taxes and duties.

     5.10 In the event that full payment of any amount due from the Licensee to
          the Licensor under this Agreement is not made by any of the dates
          stipulated, the Licensee shall be liable to pay interest on the amount
          unpaid at the rate of three percent (3%) over the base rate for the
          time being of Barclays Bank plc, from the date when payment was due
          until the date of actual payment.

     5.11 The Licensee and the Licensee's sub-licensees shall keep complete and
          accurate accounts of all Licensed Products used and marketed; and will
          permit the Licensor or its agents to audit such accounts, upon
          reasonable prior notice and no more frequently than annually, solely
          for the purpose of determining the accuracy of the royalty reports and
          payments. The Licensee's obligation and that of the Licensee's sub-
          licensees concerning audit of their accounts shall terminate as to any
          report six (6) years after the date of that report.
------------------
Confidential materials omitted and filed separately with the Securities and
Exchange Commission.  Asterisks denote such omissions.

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     5.12 The License acknowledges that the Milestone Amounts will be indexed to
          the CPI-U (Consumer Price Index--All Urban Consumers) and will be
          adjusted at the end of each License Year to take account of increases
          in the CPI-U in the preceding year. The Licensor will notify the
          Licensee of any increase in the Milestone Amounts as a result of an
          increase in the CPI-U in writing at least 30 days before the end of
          each License Year.

6.   DURATION AND TERMINATION

     6.1  This Agreement shall take effect on the Effective Date and (subject to
          the remaining sub-clauses of this clause) shall continue in force
          until the expiration, on a country-by-country basis, of the period of
          ten (10) years from the date on which a Licensed Product is first put
          on the market by the Licensee or one of its sub-licensees.

     6.2  Insofar as the rights and obligations in this Agreement concern
          territories in which the commercial practice of the Licensed
          Technology is covered by a claim being prosecuted in the Applications
          referred to in clause 1.1, or by a valid claim of an unexpired patent
          which issues in response to those Applications, those rights and
          obligations shall extend for those territories beyond the period
          defined in clause 6.1 if and for so long as the commercial practice of
          the Licensed Technology is so covered in those territories.

     6.3  If either party commits a material breach of this Agreement
          (including, without limitation, a failure of the Licensee to make any
          of the payments required by clause 5.1), and the breach is not
          remedied (where remediable) within the period allowed by notice given
          by the other party in writing calling on the party in breach to effect
          such remedy (such period being not less than thirty (30) days except
          as provided below), the other party may be further written notice
          terminate this Agreement immediately.

     6.4  The Licensee will use reasonable endeavours to develop and exploit the
          Licensed Technology, in order to maximize the financial return for
          both parties consistent with projects of similar commercial value.
          Within sixty (60) days after the end of each calendar year, the
          Licensee shall provide the Licensor with a report detailing the
          progress made and steps taken during the calendar year in:

          (a)  taking legal action against any misappropriation or infringement
               of the Licensed Technology in the Field of which the Licensee
               becomes or is made aware (save to the extent that these actions
               are taken by the Licensor pursuant to an agreement under clause
               3.6);

          (b)  developing the Licensed Technology in order to facilitate its
               commercial exploitation; and

          (c)  promoting and marketing Licensed Products.

          Any failure by the Licensee to provide the Licensor with such a report
          during the sixty (60) day period shall be regarded as a material
          breach of the provisions of this Agreement, for the purpose of clause
          6.3.  In the event that the Licensor reasonably believes that Licensee
          is not making reasonable commercial efforts under the circumstances to
          research, develop, promote and then commercialize the Licensed
          Technology pursuant to this clause, then the Licensor shall provide
          written notice to the Licensee which specifies the Licensor's basis
          for such belief and what additional efforts the Licensor believes
          should be made by the Licensee.  Upon receipt of such written notice,
          the Licensor and the Licensee shall enter into good faith negotiations
          in order to reach mutual agreement as to what efforts by the Licensee
          shall satisfy the requirements of this clause and if such mutual
          agreement is not reached within sixty (60) days after receipt of such
          written notice, then the parties agree to submit to arbitration
          pursuant to clause 10.8 to determine the efforts which should be
          exerted by the Licensee.  Thereafter, the Licensee shall exert the
          efforts determined by the parties or in such arbitration.

     6.5  The Licensee may terminate this Agreement by six (6) months' written
          notice at any time; whereupon the Licensee shall bring all sub-
          licences to an end on the same date. Any such

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          termination shall not absolve the Licensee of its obligation to accrue
          and pay royalties under the provisions of clause 5 of this Agreement.

     6.6  The Licensor shall have the right to terminate this Agreement by
          serving written notice on the Licensee in the event that:

          (a)  the Licensee has a petition presented for its winding-up, or
               passes a resolution for voluntary winding-up otherwise than for
               the purposes of a bona fide amalgamation or reconstruction, or
               compounds with its creditors, or has a receiver or administrative
               receiver appointed of all or any part of its assets, or enters
               into any arrangements with creditors, or takes or suffers any
               similar action in consequence of debts;

          (b)  the Licensee challenges the validity of any patent contained
               within the Licensed Technology.

          Such notice may terminate this Agreement either immediately or at the
          end of such period as the Licensor shall select.

     6.7  The Licensor shall have the right by serving written notice on the
          Licensee to require the Licensee to prove that the Licensed Technology
          is not being used for the production of products or the provision of
          services other than those licensed.

     6.8  Clauses 4.1, 4.3, 4.4, 6.8, 7, 9, 10.5 and 10.8 shall survive the
          termination or expiration of this Agreement, for whatever reason.

7.   LIABILITY

     7.1  The Licensee agrees to indemnify the Licensor and hold the Licensor
          harmless from and against any and all claims, damages and liabilities
          asserted by third parties (including claims for negligence) which
          arise directly or indirectly from the use of the Licensed Technology
          or the sale of Licensed Products by the Licensee and its sub-
          licensees.

     7.2  The Licensor makes no representation or warranty that advice given to
          the Licensee pursuant to this Agreement by any employee, student,
          agent or appointee of the Licensor or of the University of Oxford, or
          the use of any works, designs or information which they, the Licensor
          or the University provide in connection with this Agreement, will not
          result in infringement of third-party rights.

     7.3  The Licensee undertakes to make no claim against any employee,
          student, agent or appointee of the Licensor or the University, being a
          claim which seeks to enforce against any of them any liability
          whatsoever in connection with this Agreement or its subject-matter.

     7.4  The liability of either party for any breach of this Agreement, or
          arising in any other way out of the subject-matter of this Agreement,
          will not extend to any incidental or consequential damages or losses
          or to any loss of profits.

     7.5  In any event, the maximum liability of the Licensor to the Licensee
          under or otherwise in connection with this Agreement or its subject-
          matter shall not exceed the return of all royalties paid by the
          Licensee under this Agreement, together with interest on the balance
          of such moneys from time to time outstanding, accruing from day to day
          at the Barclays Bank plc base rate from time to time in force and
          compounded annually as at 31 December.

     7.6  If any sub-clause of this clause 7 is held to be invalid or
          unenforceable under any applicable statute or rule of law, then it
          shall be deemed to be omitted, and if as a result any party becomes
          liable for loss or damage which would otherwise have been excluded,
          then such liability shall be subject to the remaining sub-clauses of
          this clause 7.

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8.  FORCE MAJEURE

If the performance by either party of any of its obligations under this
Agreement (other than an obligation to make payment) shall be prevented by
circumstances beyond its reasonable control, then such party shall be excused
from the performance of that obligation for the duration of the relevant event.

9.  NOTICES

The Licensor's representative for the purpose of receiving payments and notices
shall until further notice be:

          The Managing Director
          Isis Innovation Limited
          Ewert House, Ewert Place
          Summertown
          OXFORD 0X2 7SG
          England

The Licensee's representative for the purpose of receiving notices shall until
further notice be:

          V.I. Technologies, Inc.
          134 Coolidge Avenue
          Watertown, Massachusetts 02472
          USA

10.  GENERAL

     10.1 Clause headings are inserted in this Agreement for convenience only,
          and they shall not be taken into account in the interpretation of this
          Agreement.

     10.2 This Agreement may not be assigned or otherwise transferred by either
          party without the written consent of the other party, except the
          Licensee may assign this Agreement without the consent of the Licensor
          to any person, corporation or other business entity which, directly
          controls, is controlled by, or is under common control with the
          Licensee. "Control" for these purposes means (a) direct or indirect
          beneficial ownership of at least fifty percent (50%) of the voting
          stock of a corporation; or (b) possession of the power to direct or
          cause the direction of the management and policies of such corporation
          or other business entity, whether through the ownership of the
          outstanding voting securities or by contract. Any purported assignment
          in violation of this clause shall be void. Any permitted assignee
          shall assume all obligations of its assignor under this Agreement in
          writing.

     10.3 Nothing in this Agreement shall create, imply or evidence any
          partnership or joint venture between the Licensor and the Licensee or
          the relationship between them of principal and agent.

     10.4 This Agreement constitutes the entire agreement between the parties
          with regard to the Licence. Specifically, but without limitation, this
          Agreement does not impose or imply any obligation on the Licensor or
          the University or Oxford to conduct development work: any arrangements
          for such work shall be the subject of a separate agreement between the
          University and the Licensee. Any variation of this Agreement shall be
          in writing and signed by authorised signatories for both parties.

     10.5 This Agreement shall be governed by English Law.

     10.6 If any one or more clauses or sub-clauses of this Agreement would
          result in this Agreement being prohibited pursuant to any competition
          law, then it or they shall be deemed to be omitted. The parties shall
          uphold the remainder or this Agreement, and shall negotiate an
          amendment which, as far as legally feasible, maintains the economic
          balance between the parties.

     10.7 The parties to this Agreement intend that by virtue of the Contracts
          (Rights of Third Parties) Act 1999 the University of Oxford and the
          people referred to in clause 7.3 will be able to enforce the terms of
          clause 7.3 of this Agreement as if the University of Oxford and the
          people referred to in clause 7.3 were a party to it.

                                      9
<PAGE>

     10.8 Any dispute, controversy or claim arising under, out of or relating to
          this Agreement and any subsequent amendments of this Agreement,
          including, without limitation, its formation, validity, binding
          effect, interpretation, performance, breach or termination, as well as
          non-contractual claims, will be submitted to mediation in accordance
          with the WIPO Mediation Rules. The place of mediation will be Oxford.
          The language to be used in the mediation will be English. If, and to
          the extent that, any such dispute, controversy or claim has not been
          settled pursuant to the mediation within 60 days of the commencement
          of the mediation, it will, upon the filing of a request for
          arbitration by either party, be referred to and finally determined by
          arbitration in accordance with the WIPO Arbitration Rules. The
          arbitral tribunal will consist of a sole arbitrator. The place of
          arbitration will be Oxford. The language used in the arbitral
          proceedings will be English.

AS WITNESS the hands of authorized signatories for the parties on the date first
mentioned above

          SIGNED FOR AND ON BEHALF OF
          ISIS INNOVATION LIMITED:
          NAME:       Dr. T. Cook
          POSITION:   Managing Director
          SIGNATURE:  /s/ Dr. T. Cook

          SIGNED for and on behalf of
          V.I. TECHNOLOGIES, INC.:
          NAME:       John R. Barr
          POSITION:   President and CEO
          SIGNATURE:  /s/ John R. Barr

                                      10<PAGE>

                                                                   EXHIBIT 10.40

  CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.

             AGREEMENT FOR THE SPONSORSHIP OF A RESEARCH PROGRAMME

THIS AGREEMENT dated April 1, 2001 is made BETWEEN:

(1)  THE CHANCELLOR, MASTERS AND SCHOLARS OF THE UNIVERSITY OF OXFORD, whose
     administrative offices are at Wellington Square, Oxford OX1 2JD ("the
     University") and

(2)  V.I. TECHNOLOGIES, INC. of Watertown, Massachusetts, USA whose registered
     office of business is at 134 Coolidge Street, Watertown, Massachusetts,
     02472 USA ("the Sponsor").

1.   THE PROJECT

     1.1  The Project shall be the programme of work entitled "Exploiting the
Specificity of Prion Protein Aptamers" which is described in and attached as the
First Schedule to this Agreement; and any modifications, deletions or expansions
approved in writing by both parties.

     1.2  The Project will be conducted in laboratories of the University, under
the direction and supervision of Dr. William James or his successor under clause
6.2. In this Agreement, the expression "the Principal Investigator" means Dr.
William James or such successor.

     1.3  The Project shall run for the period ("the Project Period") from the
date on which the first researcher hired by the University to work on the
Project takes up his or her appointment, such appointment to be made within 6
months of signature of this agreement, until the third anniversary of that date.

     1.4  The University will use all reasonable endeavours to provide adequate
facilities; to obtain any requisite materials, equipment and personnel; and to
carry out the Project diligently within the scope allowed by the Sponsor's
funding. Although the University will use all reasonable endeavours to perform
the research described in the First Schedule, the University does not undertake
that work carried out under or pursuant to this Agreement will lead to any
particular result, nor is the success of such work guaranteed.

     1.5  The University will use all reasonable endeavours to provide the
Sponsor with quarterly written reports summarising the progress of work under
the Project with the first written report to be provided by June 15, 2001.

2.   FUNDING BY THE SPONSOR

     2.1  The Sponsor will make payments to the University towards the cost of
the Project on the dates and in the amounts set out in the Second Schedule to
this Agreement. The figures in the Second Schedule incorporate the University's
best estimates of the following items details of which are attached to this
Agreement as the Third Schedule:

          2.1.1  wages, salaries and superannuation payments attributable to the
Project (making allowance for nationally agreed pay awards); and

          2.1.2  national insurance contributions and sales, excise and other
taxes (excluding income taxes), which are attributable to the Project and
imposed on the University (directly or indirectly) by national or local
authorities.

          If the actual cost of the above items exceeds the University's
          estimates within reasonable costs, the Sponsor will reimburse the
          excess to the University within thirty (30) days after   receipt of
          invoice.

     2.2  If expenditure is itemized in the Second Schedule by reference to
stated categories, the University may vire between those categories in response
to changes in the research needs of the Project; provided that the amounts due
from the Sponsor are not increased as a result.

                                       1
<PAGE>

     2.3  Except as otherwise provided by agreement in writing, as between the
Sponsor and the University the full and unencumbered title to all equipment
purchased or constructed using funds provided by the Sponsor shall vest in the
University.

3.   CONFIDENTIALITY AND PUBLICATION PROCEDURES

     3.1  For the purpose of this clause, "Confidential Information" means all
and any specifications, drawings, circuit diagrams, tapes, discs and other
computer-readable media, documents, information, techniques and know-how which
either:

          3.1.1  are disclosed by one party to the other in connection with the
Project and marked or labeled "Proprietary", "Confidential" or "Sensitive" by
the disclosing party at the time disclosure; or

          3.1.2  are written, prepared or generated in the course of, and as
part of, the Project.

     3.2  Subject to clauses 3.4 and 3.5, each party will use all reasonable
endeavours not to disclose to any third party Confidential Information within
clause 3.1.1, and not to make to any third party any disclosure of Confidential
Information within clause 3.1.2 which would prejudice the rights of the other
party under this Agreement.

     3.3  Neither party shall incur any obligation under clause 3.2 with respect
to information which:

          3.3.1  is known to the receiving party before the Effective Date, and
not impressed already with any obligation of confidentiality to the disclosing
party; or

          3.3.2  is or becomes publicly known without the fault of the receiving
party; or

          3.3.3  is obtained by the receiving party from a third party in
circumstances where the receiving party has no reason to believe that there has
been a breach of an obligation of confidentiality owed to the disclosing party;
or

          3.3.4  is independently developed by the receiving party; or

          3.3.5  is approved for release in writing by an authorised
representative of the disclosing party; or

          3.3.6  the receiving party is specifically required to disclose in
order to fulfill an order of any Court of competent jurisdiction.

     3.4  The Project will form part of the actual carrying out of a primary
charitable purpose of the University; that is, the advancement of education
through teaching and research. There must therefore be some element of public
benefit arising from the Project, and this is secured through the following sub-
clauses.

          3.4.1  This Agreement shall not prevent or hinder registered students
of the University from submitting for degrees of the University theses based on
results obtained during the course of work undertaken as part of the Project; or
from following the University's procedures for examinations and for admission to
postgraduate degree status.

          3.4.2  In accordance with normal academic practice, all employees,
students, agents or appointees of the University (including those who work on
the Project) shall be permitted:

                 3.4.2.1     following the procedures laid down in clause 3.5,
to publish results obtained during the course of work undertaken as part of the
Project; and

                                       2
<PAGE>

                 3.4.2.2     in pursuance of the University's academic
functions, to discuss work undertaken as part of the Project in internal
seminars, and to give instruction within the University on questions related to
such work.

     3.5  The University will use all reasonable endeavours to submit results
intended for publication to the Sponsor in writing not less than sixty (60) days
in advance of the submission for publication. The Sponsor may required the
University to delay submission for publication if in the Sponsor's opinion such
delay is necessary in order to seek patent or similar protection for the
results. A delay imposed on submission for publication as a result of a
requirement made by the Sponsor shall not last longer than is absolutely
necessary to seek the required protection; and therefore shall not exceed three
(3) months from the date of receipt of the results by the Sponsor, although the
University will not unreasonably refuse a request from the Sponsor for
additional delay in the event that property rights would otherwise be lost. The
University agrees to delete any Sponsor confidential information from the
publication upon request by Sponsor. Notification of the requirement for delay
in submission for publication must be received by the University within thirty
(30) days after the receipt of the results by the Sponsor, failing which the
University and the Principal Investigator shall be free to assume that the
Sponsor has no objection to the proposed publication.

4.   INTELLECTUAL PROPERTY RIGHTS

     4.1  All intellectual property arising from the conduct of the Project by
the University ("the Arising Intellectual Property") shall be the property of
the University. The University and those working on the Project shall have the
irrevocable right to use the Arising Intellectual Property for academic and
research purposes.

     4.2  Subject to clause 4.1, and to the Sponsor calling for (in writing) and
completing a license agreement within six months after the completion of the
Project (or by such other date as the parties may agree), the University is
prepared to grant to the Sponsor an exclusive license to make, have made, use
and market products and services derived from the Arising Intellectual Property.
Under such license, the Sponsor would agree to pay to the University:

         4.2.1   a reasonable proportion of all up-front, milestone and other
payments received by the Sponsor and attributable in whole or in part to Arising
Intellectual Property;

          4.2.2  reasonable royalties based on the net selling prices of all
licensed products (that is to say, all products and services marketed by the
Sponsor or the Sponsor's sublicenses and derived from, produced by, or
containing Arising Intellectual Property); and

          4.2.3  reasonable royalties on any cross-licensing and other non-
monetary compensation received by the Sponsor from the exploitation of Arising
Intellectual Property.

          The remaining terms of the license would be settled between the
          parties in good faith negotiations:  if at any point they were unable
          to agree, the point in dispute would be settled in London by an
          arbitrator.  The arbitrator would be a barrister specialising in
          intellectual property law, who had no prior association with either
          party or was otherwise acceptable to both parties.  He would be
          nominated for the purpose by the then Chairman of the General Council
          of the Bar.

5.   ASSIGNMENT

Neither party may assign any of its rights and obligations under this Agreement
without the prior written consent of the other.

6.   TERMINATION

     6.1  This Agreement may be terminated by either party for any breach of
obligations set out in this Agreement, by giving ninety (90) days' written
notice to the other of its intention to terminate.  The notice shall include a
detailed statement describing the nature of the breach.  If the breach is
capable of being remedied and is remedied within the ninety-day notice period,
then the termination shall not take effect.  If the breach is of a nature such
that it can be fully remedied but not within the ninety day notice period, the
termination shall also not be

                                       3
<PAGE>

effective if the party involved begins to remedy the breach within that period,
and then continues diligently to remedy the breach until it is remedied fully.
If the breach is incapable of remedy, then the termination shall take effect at
the end of the ninety-day notice period in any event.

     6.2  The University agrees to notify the Sponsor promptly if at any time
Dr. William James is unable or unwilling to continue the direction and
supervision of the Project. Within sixty (60) days after such incapacity or
expression of unwillingness the University shall nominate a successor to be
Principal Investigator. However, if the successor is not acceptable to the
Sponsor, then the Sponsor may terminate this Agreement by giving ninety (90)
days' written notice to the University. Nevertheless, the Sponsor will continue
to reimburse the cost to the University of contracts of service or for services
which were made by the University before receipt of the Sponsor's notice with
personnel appointed to work on the Project. The University will exercise such
rights of termination as may be available to the University in order to bring
such contracts to an end as quickly as is lawfully possible. Reimbursement by
the Sponsor will continue until the effective date of termination of each
contract.

     6.3  The expiration of the Project Period, or the termination of this
Agreement under clause 6.1 or clause 6.2, shall mean the termination with effect
from the expiry date or (as the case may be) the effective date of termination
of the obligations imposed on the parties under clauses 1 and 2. Clauses 3.1 to
3.3 shall survive for three years after the expiration of the Project Period or
(as the case may be) the termination of this Agreement. Clauses 3.5 and 4.2
shall survive for one year after expiration or termination (or for such other
period as the parties may agree under clause 4.2), unless it is a case of
repudiation by the Sponsor or of termination by the University under clause 6.1
(in which event clauses 3.5 and 4.2 shall terminate with clauses 1 and 2). The
remaining clauses shall survive indefinitely after expiration or termination.

7.   LIMITATION OF LIABILITY

     7.1  The University makes no representation or warranty that advice or
information given by the Principal Investigator or any other of its employees,
students, agents or appointees who work on the Project, or the content or use of
any materials, works or information provided in connection with the Project,
will not constitute or result in infringement of third-party rights.

     7.2  The University accepts no responsibility for any use which may be made
of any work carried out under or pursuant to this Agreement, or of the results
of the Project, nor for any reliance which may be placed on such work or
results, nor for advice or information given in connection with them.

     7.3  The Sponsor undertakes to make no claim in connection with this
Agreement or its subject matter against the Principal Investigator or any other
employee, student, agent or appointee of the University (apart from claims based
on fraud or willful misconduct). This undertaking is intended to give protection
to individual researchers: it does not prejudice any right which the Sponsor
might have to claim against the University.

     7.4  The liability of either party for any breach of this Agreement, or
arising in any other way out of the subject-matter of this Agreement, will not
extend to loss of business or profit, or to any indirect or consequential
damages or losses.

     7.5  In any event, the maximum liability of the University to the Sponsor
under or otherwise in connection with this Agreement or its subject matter shall
not exceed the return of all moneys provided by the Sponsor under the clause 2.1
together with interest on the balance of such moneys from time to time
outstanding, accruing from day to day at the Barclays Bank plc Base Bate from
time to time in force and compounded annually as at 31 December.

     7.6  If any sub-clause of this clause 7 is held to be invalid or
unenforceable under any applicable statute or rule of law then it shall be
deemed to be omitted, and if as a result any party becomes liable for loss or
damage which would otherwise have been excluded then such liability shall be
subject to the remaining sub-clauses of this clause 7.

8.   NOTICES

The University's representative for the purpose of receiving payments, report
and other notices shall until further notice be:

                                       4
<PAGE>

          The Director
          Research Services Office
          University Offices
          Wellington Square
          Oxford OX1 2JD
          With a copy to:
          The Administrator
          Dunn School of Pathology
          University of Oxford
          South Parks Road
          Oxford
          OX1 3RE

The Sponsor's representative for the purpose of receiving invoices, reports and
other notices shall until further notice be:

          Dr. Bernadette Alford
          V.I. Technologies, Inc.
          134 Coolidge Avenue
          Watertown, Massachusetts  02472
          USA

9.   GENERAL

     9.1  Clause headings are inserted in this Agreement for convenience only,
and they shall not be taken into account in the interpretation of this
Agreement.

     9.2  Amounts specified for payment in this Agreement are stated exclusive
of Valued Added Tax. Whenever the Sponsor is obliged to make a payment to the
University under this Agreement which attracts Value Added, sales, use, excise
or other similar taxes or duties, the Sponsor shall be responsible for paying
such taxes and duties.

     9.3  If the Sponsor fails to make any payment due to the University under
this Agreement then, without prejudice to the University's other rights and
remedies consequent upon breach of this Agreement, the University may charge
interest on the balance outstanding, accruing from day to day at the base rate
from day to day at the Barclays Bank plc base rate from time to time in force
and compounded annually as at 31 December.

     9.4  If the performance by either party of any of its obligations under
this Agreement (other than on obligation to make payment) shall be prevented by
circumstances beyond its reasonable control, then such party shall be excused
from performance of that obligation for the duration of the relevant event.

     9.5  Nothing in this Agreement shall create, imply or evidence any
partnership or joint venture between the University and the Sponsor or the
relationship between them of principal and agent.

     9.6  Neither the University nor the Sponsor shall use the name of the other
in any press release or product advertising, or for any other commercial
purpose, without the prior written consent of the other; provided, however, that
publication of the sums received from the Sponsor in the University's Annual
Report and similar publications shall not be regarded as a breach of this
clause.

     9.7  This Agreement and its two Schedules (which are incorporated into and
made a part of this Agreement) constitute the entire agreement between the
parties for the Project. Any variation shall be in writing and signed by
authorised signatories for both parties.

     9.8  This Agreement shall be governed by English Law. The English Courts
shall have exclusive jurisdiction to deal with any dispute which may arise out
of or in connection with this Agreement.

     9.9  If any one or more clauses or sub-clauses of this Agreement would
result in this Agreement being prohibited pursuant to any applicable competition
law then it or they shall be deemed to be omitted. The parties shall uphold the
remainder of this Agreement, and shall negotiate an amendment which, as far as
legally feasible, maintains the economic balance between the parties.

                                       5
<PAGE>

AS WITNESS the hands of authorised signatories for the parties on the date first
mentioned above.

SCHEDULES
1.   Description of the Project
2.   Payment Schedule
3.   Itemized Details of the Costs of the Project

                                       6
<PAGE>

                                                                      SCHEDULE 1

     Project Title:  Exploiting the Specificity of Prion Protein Aptamers
                          Description of the Project

Background
[*****]

We now wish to consolidate the advances we have made in this field. We require
more information about the structures and binding properties of these ligands in
order to fully exploit their diagnostic and affinity purification applications.
This research project will focus on providing that information. In doing so, we
aim to transfer the technological know-how for the selection and
characterization of RNA ligands for prions and other target molecules into
VITEX's intramural operations.

This Vitex-funded research contract with Oxford University will underpin
concurrent investigations at the Vitex R & D facility.

Research Programme
1.  [*****]
2.  [*****]
3.  [*****]
4.  [*****]
5.  [*****]
6.  [*****]
7.  [*****]

Milestones (Year 1)
0 months:  Start
[*****]
[*****]
[*****]
[*****]

----------------
Confidential materials omitted and filed separately with the Securities and
Exchange Commission.  Asterisks denote such omissions.

                                       7
<PAGE>

                                                                      SCHEDULE 2

                                PAYMENT SCHEDULE
<TABLE>
<CAPTION>
DATE FOR PAYMENT BY THE SPONSOR                              AMOUNT (EXCLUDING VAT/1/): (POUNDS)STERLING
--------------------------------------------------------------------------------------------------------
<S>                                                          <C>
Within 30 days of Execution of the Agreement                 [*****]
--------------------------------------------------------------------------------------------------------
July 1, 2001                                                 [*****]
--------------------------------------------------------------------------------------------------------
October 1, 2001                                              [*****]
--------------------------------------------------------------------------------------------------------
January 1, 2002                                              [*****]
--------------------------------------------------------------------------------------------------------
April 1, 2002                                                [*****]
--------------------------------------------------------------------------------------------------------
July 1, 2002                                                 [*****]
--------------------------------------------------------------------------------------------------------
October 1, 2002                                              [*****]
--------------------------------------------------------------------------------------------------------
January 1, 2003                                              [*****]
--------------------------------------------------------------------------------------------------------
April 1, 2003                                                [*****]
--------------------------------------------------------------------------------------------------------
July 1, 2003                                                 [*****]
--------------------------------------------------------------------------------------------------------
October 1, 2003                                              [*****]
--------------------------------------------------------------------------------------------------------
January 1, 2004                                              [*****]
--------------------------------------------------------------------------------------------------------
</TABLE>

BANK DETAILS
BANK:

[*****]

MAIN ACCOUNT:

[*****]

[*****]

----------------
/1/  VAT will be added when chargeable.

Confidential materials omitted and filed separately with the Securities and
Exchange Commission.  Asterisks denote such omissions.

                                       8
<PAGE>

<TABLE>
<CAPTION>
SIGNED FOR AND ON BEHALF OF                  SIGNED FOR AND ON BEHALF OF
THE CHANCELLOR, MASTERS & SCHOLARS           V.I. TECHNOLOGIES, INC.
<S>                                          <C>
OF THE UNIVERSITY OF OXFORD

Name:                                         Name:       John R. Barr

Position:                                     Position:   President and CEO

Signature:  /s/ Representative of Oxford      Signature:  /s/  John R. Barr
            Signature of file with
            the Company
</TABLE>

ACKNOWLEDGED BY THE PRINCIPAL INVESTIGATOR:

Name:       Dr William James

Signature:  /s/ Dr William James

                                       9

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