Philip Morris
Cloning Business: It's Growing Fast It's Growing Fast
Fields
- Author
- Cooke, R.
- Type
- NEWS, NEWSPAPER ARTICLE
- Area
- WAKEHAM,HELMUT/KAROL SHARPE'S OFFICE
- Site
- R37
- Named Organization
- Biogen
- Cetus
- Cornell Univ
- Eli Lilly
- Genetech
- Genex
- Harvard Univ
- Mit
- Natl Distillers & Chemical
- NIH, Natl Inst of Health
- Science Magazine
- Standard Oil
- Tenex
- Univ of California
- Univ of Michigan
- Upjohn
- Bethesda Research Lab
- Cetus
- Request
- Stmn/R1-004
- Stmn/R1-150
- Named Person
- Adams, D.
- Berg, P.
- Boyer, H.
- Cape, R.E.
- Dada, I.A.
- Demain, A.L.
- Einstein, A.
- Farley, P.J.
- Gilbert, W.
- Glasser, D.
- Glick, L.
- Godfrey, O.
- Jackson, D.
- Kiley, T.
- Saliwanchik, R.
- Swanson, R.
- Berg, P.
- Master ID
- 1000229536/9811
Related Documents:- 1000229537-9544
- 1000229545-9550 Brief Synopsis
- 1000229551-9552 Introduction
- 1000229553-9555 Brief History of Cetus Financing
- 1000229556-9557
- 1000229558-9560 Special Note to Investors
- 1000229561-9563 Special Note Regarding Founder's Stock
- 1000229567-9569 Board of Directors
- 1000229575-9580 Achievements of Cetus People
- 1000229581-9599 Present Cetus Activities
- 1000229600-9616 Research Plan
- 1000229617-9619 Patents
- 1000229621-9656 Debenture Purchase Agreement
- 1000229657-9661 the Cetus Story
- 1000229668 World Roundup
- 1000229669-9670 Latin Drive: Brazil Spends Millions to Put Alcohol in Cars and Save Oil
- 1000229671 Can US Reduce Imports with Gasoline? Some Say Yes, But Officials Are Dubious
- 1000229672-9673 Bacterial Insulin Production Hears Reality
- 1000229674 Business World
- 1000229675-9677 Who Should Play God?
- 1000229678 Schering Plough New York Analysts' Meeting December 7, 1977
- 1000229679 Indiana Standard Labels Purchase Offer Part of Move to Wider Technology Base
- 1000229680 Big Deal for Berkley Bugs
- 1000229681 Oil-Less World May Run on Bugs
- 1000229682-9685 Tinkering with Life
- 1000229686-9687 Set for Biology's New Revolution
- 1000229688 Little Black Box of Cetus
- 1000229689-9695 Industry Is Finding More Jobs for Microbes
- 1000229696-9701 Dup of Id 1000229657-9661
- 1000229702-9710 Recombinant Molecular Research at Cetus Corporation
- 1000229711-9715 New Cetus Antibiotic
- 1000229716-9720 Letter to the Shareholders
- 1000229721-9726 Letter to Shareholders
- 1000229727-9728 Letters to the Shareholders
- 1000229729-9730
- 1000229731-9734 Letter to the Shareholders
- 1000229735-9736 Letter to Shareholders
- 1000229737-9749 the Manipulation of Genes
- 1000229750-9770 Microbial Genetics and the Future of the Pharmaceutical Industry
- 1000229771-9774 Recombinant Dna: Fact and Fiction
- 1000229775-9778 Testomony of Ronald E Cape, Phd President, Cetus Corporation, Berkeley, California Before the House Subcommittee on Science, Research and Technology
- 1000229779-9797 Biosystems Poised for Growth
- 1000229798-9805 Testimony of Ronald E. Cape, Ph.D President, Cetus Corporation, Berkley, California Before the Senate Subcommittee on Science, Technology and Space
- 1000229806-9807 Statement of Ronald E. Cape, Ph.D President, Cetus Corporation, Berkeley, California Before A Special Joint Congressional Hearing in Conjunction with Oversight Hearings on Science and Technology Policy the Senate Subcommittee on Science, Technology and Space of the Commerce, Science and Transportation Committee Presiding, Senator Adlai Stevenson, III Washington, Dc
- 1000229808-9811 Statement of Ronald E. Cape, Ph.D. President, Cetus Corporation, Berkeley, California at the Annual Meeting of the American Association for the Advancement of Science Session on Recombinant Dna Public Health and Biomedical Research Policy Washington, D.C.
- Author (Organization)
- Boston, Sunday Globe
- Litigation
- Stmn/Produced
- Characteristic
- MARG, MARGINALIA
- Date Loaded
- 05 Jun 1998
- UCSF Legacy ID
- yei84e00
Document Images
1000229663

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stCLONING '
~ ~~ ~ ~ Continued from Page ]
e b~>~m~~
.
;.-: ., . And t}us is important Since time
r,,,...'
x; _. .
immemorial, humans have been using
f a~`e'~} the microbes - baeteria, molds and
°~ ~ yeasts - to ferment wine, make bread
and riperi; cheese. Worldwide, today.
F3 -In microbes serve as miniature living fac-
~ ~~ ~~~~ t pories, producing dozens ot impo
rodurts such as amino acids, enzymes,
solvenu. pesticides, growth regulators
and antibiotic medicines. ;
Huge industries, notably the'phar-
Y
~
By Robert Cooke
Globe Staft ~ e4`~
' Read or no at home and abroad, srtull new clonin : m'°ctutica] industry and brewing. have
Y ~ 8 Mren built on the silent; uncomplaining
`~ companies are springing up, scrambling to take advantage microbes. All these bugs require is
good,
of the hot discoverie; coming now frota the once-quiet realm foods, proper temperatures and com-
of biology. fortahle conditions.
~~ Everybody - including major drug houses and oil com- The new goal' basically; fs to iede-
,
panies - is betting that the pay-off from genetic engineer- sign ttrrse living things, or build
wholly
ing is going to be btg new creatures that have never before
W4 The gamble: That tiny microbes can be "engineered," been seen in nature. For example:
"cloned"'
their genes ritanipulated or .so they turn out large - Genetically engineered mitrabes
amounts of chemicals, hormones enedieines, vitamins and will one day be pouring out valuable
foods on demand = a feat hvrmones for treatment of human ill-
never before possible in ali of. ness. Already, at Harvard 'L'niversity,
history. Walter Gilbert's reseaich=group has
coaxed a lowly bacte?ium. E: colii: into
making rat pro-insulin. Soon, this will i
be done with human Insulin, for use
diabetic people.
{ ._
- At Cornell University, botanis.ts
have found a way to swap genes be-
tween yeast cells and other organisins,
such as bacteria. 4'ltis opens the way for
n of "tailor-made"
ing eompan~ based it, liock p~uctio. types of
yeast that will be important
~ in brewing,
ville, Md.
food processes
baking and other .
And in Europe, a group of
leading 'scientists - includ-'
ing some' Americans. =. 'is
putting '_ together a cloaing
cornpany_.registered in Lux-
emboutg -and based in Swit-
`ierland. Thus lt's rlear that' busi=
ness has seen the light tn
genetic engineering.
:The'talk Is of cloning; but
-In this-easerloning has noth=-
ing to do wittt making multi-
ple copies of Albert Einstein;
~Idi" Amin.Dada or anyone-
else. The work - for now, at
least'- Is limited mostly to
° microbes, but in the future it
will be extended to include plants and domestic animals.
This whole enterprise turns on a few basic discoveries
made in the last few years. The field is called "recombinant
DNA experimentation,",but it means, basicalIy, that scien-
tists now can swap genes back and forth among very differ-
ent organisms.
Genes are discrete units'made from a chemical called
DNA, and represent nature s chemical codebook. They con-
tain all the details on how to build and operate living organ-
isrns - from men to microbes. Genetictngineering involves
ckopping up and rearranging these chemical messages to
yirld new, useful living things. .
This has become possible because special enzymes have
been found that can snip genes apart and splice them back
togiether again in precise ways, allowing amazing flexibility
in the construction of new organisms.
.. . . . .. .. 1 _ . .,+a
In Califoriiia, for eicam=
ple, two cloning firms have
been founded. recently. In.
Maryland, another smalll bio-'
loginl research firm is nov.
building ,.Iaboratories -and
hiring: scientists. In Michi-
gan; a;"
leading"biologist is
now setting up his own clori-
- Two resr.arch groups - one in
- have
Scattle, the other in Belgium
found a way to introduce new genes=
new bits of hereditary fnformation"=
into plants. This is through use of the
bacterium that causes crown'gill dis.
ease, a.,ty pe of, tumor ~ that , invoives
insertion of new genes, in plants. If thii
system proves useful,, the impact on
world agriculture could beenormous.
- New techniques for mating the
unmate-ab1e, cell fusion, also show
promise. r lt ~:was snnounced,-slightly ;
"-
more than amonth ago, for example.
that Otis Godfrey, of Eli Lilly & Co,
had fused. two Streptomyces species to
produce a new typp which makes an an-
tibiotic' not- made by either parent ~. '
strain alone. "
How fast, then; will results of such
work be 'seen coming *from industryi
Estimates vary, but most observers be-
~
lirve it will be less than 10 yearS. .' C
Arnold L. Demain, professor of nu-
:ritimn ~nd food science at MIT. has-
tun~ had an interest in the use of mi-
crr,hes for pruduction of industrial
products. He ct:rnmrntcd:
"1 cxp~vt thit genirtic engineering.
in tts brnade.t srnse, will be involved
with indu.try within the next few
v.,:m. Thi% is because there may be
ww% to incrrese the gene dosage in rx-
i.ting micro-organisms even without
r.tinmhinant DNA"
_fr,4d7~.3!F. L

NL'hr'.t this means is that-4t may be Demain'thinks it may be possible, «htle thc ftrms itrst
efforts were
c
d
h
ntratt
in t
e pharmacrutical
pr.sibte soon to dramatically increase using this kind of genetic engineering, cone
induce bacteria to make the essential field, Cape said Cetus Corp. has recent
the «mounts - or types - of products - t
o
_ : alrr+rd~ being m:~de by single-cell crea- amino acid tryptophan, the . vitamin `' ly bEgun
finding customers In other
uch as the foad
h
i
d
ii ;
l
-
arrrs, s
em
.1
ca
an
o
~
turas riboflavin, and biotin. a vitimin fed to
"
~ : 'The first producu,
Demain said, livrstock
vl ill probably be enzymes, since busi- ~.. Prospects now look good enough.
ncss is primed for this kind of activity. "The tryptophan operon has already , Cape and the
president of Cetus, Peter
Demain said J Farlcy, saiiiso the dirnt has been rap-
and because such enzymes are usually . been cloned in E. coli,"
~ prodaced by only one gene." producing bacteria carryi, ' t; hundrrds ly hiring the best molecular
biologists
Important enzymes whose produc- of copies of the tryptoNhan genes, .. It can find. It advertised in
Science
tion might be enhanced by genetic rn- rather than just one set. Magazine. got about 400 respanses,
4x; glneering include amylase, which , In addition. Russian experimenters brought about two dozen
to Berkeley
a~, breaks dovn starches, and glucose "have taken the riboflavin cpemn from ; for IntervieMs, and
hired eight They
~:; Isomerase, which helps make the.cheap- a bacterium B. subulis and are cloning are still looking
for.more.
i
h
on to.t
e new sn,all firnts
,~er, useful new high-tructose sugars it in E. coli," but it is not-known yet if In addit
.This rapid spaW ning ofnew cloning . = rtootiavin ts actuany ocing mac e r
'
-
arley
nant DNA technulogy, Cape and l
'o " ~'
*~~c
¢ mpanics may surprise somc pcople, main said.
't
::
aid most of the dru
and chemical
~`
~
g
s
, especii.lly thosc who watched the near- One set of genes many research companies have ezpressed
interest. A
frantic?our-
o
er the safct
c
d
b
t
d
w
ar
y
a
v
~~ :
e
e
get to ,. _,,
y groups
ould like to clone an
couple dozen ehemical companies ar
t
~
''~ '
of genetic tinkering experiements
-
working in a bacterium; Dema3n said, ls
looking into it, and Imperial Chemical
Now, however, some of those origi- the set that makes a biochemical called -
'
'
6lreadyzn-
" nal fears - about creating newplagues,_ Interferon. This natural substance ~?r Industries Engiand
has
is be- nounced big plans"'
d "M'hich is very difficult to isolate
b
t
f
fa
.
f
,
ou
aew
orms o
t?erm vrar
re an
a
,
about rcirasing deadly new diseases by .'.Iieved to help defend the body itself
`' against viral infections,
ucident - seem to be subsidin
,
. rt
g
American researchers For a proposed therapy,' he said.
Nonethelres
%' Cetus Corp: itself has big pliris, es-
' pecially since two huge American cor-
poratinns - Standard 011 of Indiana
,
_ who receive government funds, are still ou inust use human incerfcron. If we (Amoco), .and
National Distlllers dr
bought - substantial
,;.d required to observ r a strict set of guide- _ can do that, it.may be s: whole new ball
w'Chemical Co. -l
Iines-adminiatered by the US Nation- ; game in protecting us' against virss ,., shares, 25 and 15
percent respectively,
diseases_. '
al Institutes of Health (NIH) -staUng ;r, within the last year.
= what-th can do, what the cannot do `''' `
cY Y y, z- ... Tliis; then, explains the excitement ~ ~ Their optimisiii. Cape said, arises
and how to do it. tp , found today among the world's major from confidence'since "none of us
It ls,thoiaght, however, tbat these ,: pharmaceutical companies, and It also - doubt the hurdies
will'be hurdled. Our
guidelines.vill soon be relaxed. ;yZ so _,~exPlains the rush to set up new compa f; purpose is to
produce an economic bug
and po'urs out
~ - nies to exploit these scientific discover . tltat lives on cheap stuff
# The important point, however, is ~ 'n.vast quantities of a ptoduct.'.'
~. that these NIH guidelines do not apply
to Industry, yet. And similar sets of-- So far the most aggressive, mostad. .."tlie tvould predict
-that. within.the
guidelines overseas - where they exist. vanced of these new firms.. is Cettis -next.:ive or
10years we re Qoing to see
at all - are usually far less strict than Corp.. M+hich'seems to have a five-to- biological
involvement In tbe-produc-
the American rules. seven-year head start in` the gasite. " tion of chemicalL that hatte never
be-
'
'Another interesting area ~ Demain . Cetus. Corp. Was formed - wit4t fore been prvduced
bioiogically: *
said, "is the possibility of making vtta- headquarters Ih Berkeley. Calif.,-near "There's
anexplosive new Industry
c;;, ntins and amino acids by these tech- ' the most famous campus of the Univer- here, no doubt
about W We were the
niques. These are made by a series of sity of California -~,ust befQre new ex irst ones !n; we
ve'got. a track record
_-genes, because they are~made by a se- ` periments witli recombinant;DNX'be- now,we've.gotour
nomentum.lloweJ-
. . . . .
.ries ot eniymcs" : came pwcsiole- Its orrainal goal was to '.er that rnay contrbute.to.4 1ead,
we're
Aa important point, 'he added, 'is take advantagrhf the growing.store ot Aoing to try,to maintain it
bi
l
o
that in some cases these.sets cf genes new kniiwledge in molecular
ogy. - f' x' Simll:r optimisat is-?ound at
are clustered together to form what Is, as applied to industry. ;..7 thesdb Research Laboratories
Inc, of
cal;ed an "operon," aad 'if it's.all to- . -Cetus was founded by -,or around ockville, Md, where 1Jr
Patricia Berg
gether on one picce of DNA, it's possi- - the inspirationof Don Glaser. :vho has jusibeen hired as
di ectorof genct-
ble to introduce it into a plasmid. put it won the.Nobel Prize for Physics in 1960 ic engineeririg.
"
into E. coli and clone the whole for inventing the -bubble chamber" ° .
oPeron" `- .'Cctus Corp.'s rhairmari, Ronald E. 'Our company 'is ree years old
The lasmids Detnain mentioned are Cape, said. ~- < now, and it was found~1 with the idea
P of making enzymes fo~'molecular biolo-
one key element in this work. They are "Glaser movcd "away from physics gy. specifically >,~,e
restriction
fi d
d
C
to n-
ttny rtngs of genettc matenal, DNA, into biology, and he v.ante
r:h'ich are not part of the bacterium's ways to mechanize the hunt for-rare
ns,rmal store of genetic information. ' evcnts in biology. It was our feeling.
Plusrniils do, no..ever, carry genes that back in 1971, that thvre must be prob-
enabic the Lecteria do certain jobs. lems in industrial microbiology that re-
They are passh: around among bacteria quire this sort of screeni'ng:' Cape said.
- in a procFss called conjugation - After a fe:v rougFi vears, and a tough,
like so much loose change. timr cr~n~incing industrialists toey
Such plssnids normallycarry genes nerd outside help witn microbiu6+gy- for antibiotic rrsistance,
giving bacte- Cape said, business has started taking
ria the ability to outsmart antibiotic hold and now 'our product is just im-
mrdicines. But scientists have learned proving yields from biochemical prnc-
to rnanipulatc this pl.cmid systrm and rsses. We're basically in Ihr business of
w,- it to ferry ncK, abnnrnial grrottit dev+loping biolosically-basrd induttri-
in:v::r.ation tr+to microhs. al processes.
enzymes."
"At present, we'rI~' justconsiderinr
various options" in g nctic engineering.
"We haven't dccid wherr we're going
yet, but we do exp t to have our labo-
ratory functional b July 1. We're set-
ting up a DNA res ,arch.group, and we
now have about 25 em loyees," she said
in an interview.
For purposes pt comparison. Cetus,
in BerkcJry, now has 150 employees,
anei 40 of them have advanced degrees.
Capa himself earned a Ph.D. in biulogy,
then took a master's degree in business '-=;

:r,- adminutration at Iiurvard Farley, who
' favY:Sd/
~ie~"rhas a medical degrrr also took a
.,'
master's dcgrse in business,at Ston-
~` tord.
Fvcn sntaller and newer - but also
basrd in liiarylanJ -- is Genex Cur
foundcd under the guidance o r. a-
vid Jackson of the University of 1Vlichi-
gan. So far all they have Is the ottice. is^
:
.
a secrrtary and a presidentDr
.
suite,,. 1li Glik l3ut Tenea too has plans
.~scz.,,
tvr cashing in on the industrial pros- s',:~~ .-~>
pertsofrecomi,inantD?lA t
. ~- tRg
Wc rc basically a consulting com- k=
~ =~tt
pany to industry," Glick said. "We have T3'
assembled a group of consultants'to
t' GenaC using knowledgable people ~ ande one of Biugen s nine scientist co
,-
`<from ail around the country So we're founders !s Dr Walter Gilbert of Har-
. x. ,.
== essentially a general contractor Irt vard
.
genetic engineering.:. lt was Gllbert's group at Harvard
~ which recentl announced It has
~~ A:imilar approach to the cloning tricked the E coll bacterium Into mak-
. ~., . business is being used by Genentech, -r tee
Ing -- and excreting - the rat pro-insu. ~
;_ another tledglin~ California company ~
.
:. that is about to open its own loborator- lin molectile. ,,
ies in South San Franciaco E~ So tai, Gilbert said, Biogen has no
. '
.pcrmanen t facjlities ot its own, but it
Unlike Ce.tusi Corp., which does all "I 4~
ts seeking some laboratory space in
its own research in-house. Genentech
witzerlatid For now, the group qCscJ
S
asks researcher's associated with uni- qntiits'whodo the advising (for the
, versities or private research centers tn cprporation) are beginning to do exper-
-t" take on projects, - Iments in their own laboratoiies ~
areas of this
T` "Genen{eclt provides the.capital for flne'of the stickiest
dettined research; - explained the firra's' whole enterprise, however,!s going'to
patent counsel, Thomas Kiley;"It's just be'the tssue of patents. Stanford Un(=
a matter Qtdevising a researcli proposal versity and the University of Califor-
and then:.contracting the research'to. nia, for example, have filed for a patent
'the institution.' c4vcring most of the experimental fech-
~Genentecn indeed wac the'sponsoi niques. Genentech, too, has filed a pat-
,,
of pioneering research done at the Un!- ent on its'tomatastatin work, and Har~
California land the City off vard has iiow applied for a patent on
versity of
Hope in southern California which re Gilbert s results with lnsulin.
,,-
suited in the first mamalian substance, There. is no answer yet, ?towever,
""`1n a small brain liormone - somatosta- whethcr thac new. types of living or-
tin =. being made. by the bacterium E, ganisms are even-going to be patent-
>`oli:'The work was done iri the labora- abia :. -~-.. ..,
= According of Dr. Herbert Boyer at the Uni- ccording to Roman Saliwanchik, a
versity of California, San Francisco.. senior patent attorney fo~~ the Uaiohn.
Co. in Kalamawo Mich:; the position
.
Boyer, along with Robert,Swanson, of -the patent'office is that the Patent
ts a co-founder :of Genentech. Boyer Staiute precludes the patenting of liv-,
himself has made some of the most im= Ing things. The seakon they've been pa-
portant, discoveries !n recombinant tenting plants is that there is a special
DNA experiments. Swanson, who has a patent law for plants."
degree in chetnistry from MIT, also Upjohn won a favorable"decision on
holds a business degree from MIT. this issue from ihe US Court of Cus-
The newly formed cloning company toms and Patent Appeals last October,
setting up shop - in Europe is called Now the patent o#tice, through the gov-
Bio en which was just recently incor- ernment,. has appealed that decision to
porated in Luxembour Its president is the US Supreme Court. A decision is
a Nrw Yor businessman, Dan Adams, expected soon.
F r?sE: *t,'"d
~ s sr =;>t
aA
~ .~ P*:aa %
