Australasian Biotechnology (backfiles) AusBiotech ISSN: 1036-7128 Vol. 9, Num. 3, 1999

With the increasing realization about the importance of the need for public awareness and information about gene technology, it is pertinent to look at what underpins "risk communication", for essentially this is what talking about a new technology involves. In understanding how people perceive and respond to risks, it is then easier to know how to address a communication program. This was topic of a conference on "Public Perception of Biotechnology" held at the Agricultural Research Institute in the USA in the late 80s and it is still highly relevant now.

The Federal Government will need to go "all or nothing" in reducing the Capital Gains Tax rate for overseas investors to zero if they are serious about attracting US and UK venture capital to Australia, a new Deloitte Touche Tohmatsu survey, Venture Capital in Australia, August 1999, indicates.

A stringent new system to control all commercial releases of genetically modified products in Australia was recently announced by the Minister for Health and Aged Care, Dr Michael Wooldridge.

Europe's biggest bank has advised the world's largest investor to sell their shares in leading companies involved in the development of genetically modified organisms because consumers do not want to buy their products.

The Chairman of the Commonwealth Biotechnology Ministerial Council, and Minister for Industry, Science and Resources, Senator Nick Minchin, launched on 2nd September a biotechnology discussion paper aimed at increasing public awareness and understanding of biotechnology.

Senator Nick Minchin, Minister for Industry, Science and Resources, today called for industry and researchers to develop new proposals for government funded research. The Minister intends to make a formal call for applications for a new round of funding for Co-operative Research Centres (CRCs) in November 1999, with the closing date for applications expected to be 5 July 2000.

The opportunities and challenges of biotechnology and its impact on Australian agriculture were highlighted at a meeting of the Agricultural and Resource Management Council of Australia and New Zealand (ARMCANZ) in Sydney.

Professor Frank Fenner celebrated the 50th anniversary of his appointment as the founding Professor of Microbiology at the John Curtin School of Medical Research, in the Australian National University in August.

From 5-7 October, 32 Australian biotechnology companies and research bodies will be showcasing their capabilities in biotechnology at BioTechnica '99, one of the world's leading biotechnology trade fairs, in Hanover, Germany.

Major outbreaks of Newcastle disease in poultry in Australia over the last two years were due to a change in a home-grown, milder strain, and not from an incursion from overseas.

Gene technology will make a key contribution to a healthier, wealthier and more sustainable Australia in the 21st century, members of the Queensland Parliament were told recently.

Research into probiotic bacteria and applications of probiotics in foods, yoghurts and beverages is being closed by management of Food Science Australia. This will result in the loss of up to eight staff . It is believed that over 20 staff will lose jobs in Food Science Australia in coming months. Food Science Australia is a joint venture of CSIRO and the Victorian Government's Afisc, set up some two years ago.

Dr Tony Weiss this month will receive the prestigious Amersham Pharmacia Biotechnology Medal for his internationally recognised work on human elastin.

Following a career spanning over twenty years in corporate agribusiness, David Campbell has established two new independent consulting businesses to progress interests in the areas of technology development and transfer, strategy development and implementation, and capability and skills development. He will operate these businesses as "Leading Dog Consulting" providing leading edge strategic management solutions, and "Agribusiness @ Work" providing an integrated approach to improving the sustainability and competitiveness of agribusiness. He will team with other leading edge professionals in Australia and elsewhere, when necessary, to provide such services with even greater customer value.

The third issue of AgBio Forum is now on-line at http://www.abgioforum.missouri. edu/The evolving role of private investment in public research universities is discussed, along with its implications for the future of the Land Grant university system.

The newly published 1999 edition of the European Biotechnology Directory reveals the fastest growth in the European biotech sector is coming from Germany.

At a National Press Club Morning Newsmaker's briefing last week, BIO President Carl Feldbaum chided celebrities, such as Prince Charles, for committing a public disservice by speaking out against science despite knowing little or nothing about it.

A new joint venture biotechnology investment company, Biotron, has been formed to finance the development of a portfolio of biotechnology products arising from a new `platform technology' which has resulted from the world of Professor Peter Gage and members of the membrane Biology Program at the ANU's John Curtin School of Medical Research.

Biowest Australia, Perth, Australia and AgDirect Australia, a company owned by two West Australian farmers, have formed Grain Biotechnology Australia Pty Ltd (GBA). Stewart Washer, spokesman for Biowest, is confident that other investors will join the venture.

The first clinical trials are now getting underway at the new world-class medicines research unit at The Prince of Wales Hospital in Sydney.

A CSIRO Animal Health team has developed a method to deliver natural proteins, cytokines, into animals, in combination with better vaccines. Cytokines are proteins produced by the body's own defence mechanisms to help fight disease.

CSIRO is moving ahead with the development of better strains of wheat, barley and other crops using modern genetic technologies, the Chief of CSIRO Plant Industry, Dr Jim Peacock said on 3rd September.

Rocks from the remote Pilbara region of northwestern Australia contain chemical traces of our most distant ancestors that are nearly one billion years older than previously known.

COMPANY NEWS

Funding from Venture Capital Companies to Develop New Anti-clotting Drugs to Prevent Heart Attack and Stroke

Thrombogenix Pty Ltd, a Melbourne-based biotechnology company, has obtained its second round of investment from Macquarie Technology Funds Management, Momentum Funds Management and the Australian Technology Group Limited (ATG). These funds will enable it to further develop a promising new class of anti-clotting drugs.

Biota Holdings Limited (ASX:BTA) announced recently that Glaxo Wellcome has received regulatory approval from the US Food and Drug Administration (FDA) to market Relenza® (zanamivir for inhalation) for the treatment of influenza A and B.

Biota Holdings Limited has lodged its results for the year ended 30 June 1999.

The company reported total revenues of $3.07 million, compared to $1.77 million for the previous year.

Biota Holdings Limited advises that Glaxo Wellcome K.K. (Japan) has announced that it had filed with the Japanese Ministry of Health and Welfare (MHW) on 2 August 1999, for approval to import the inhaled anti-viral drug, zanamivir, for the treatment of influenza A and B.

Martin D Madaus, Joanne P Spadoro and David B Thomas have been named vice presidents of Roche Molecular Systems, Inc.

The announcement was made by Kathy Ordonez, President of the biotechnology company.

F H Faulding & Co Limited (Faulding) recently announced that is Faulding Healthcare business unit has acquired the business interests of the Brisbane-based health supplement company Queensland Biochemics Pty Ltd, which trades as Golden Glow Natural Health Products (Golden Glow).

The combined results of six international clinical trials show the new Australian-developed anti-influenza medication called Relenza (zanamivir) can speed-up recovery from the symptoms of influenza by three days in many sufferers.

New hope for cancer patients has emerged with the isolation and cloning of an enzyme that is responsible for the growth and spread of solid tumours. Scientists at the ANU's John Curtin School of Medical Research (JCSMR) have become one of two international research groups who have successfully cloned the enzyme, called `heparanase'.

Progen Industries Limited (ASX Code: PGL; Nasdaq Code: PGLAF), recently received provisional approval from the Peter MacCallum Cancer Institute's Ethics Committee to commence testing its anti-cancer drug, PI-88, at the Institute under the umbrella of Centre for Developmental Cancer Therapeutics.

Researchers at the Victorian College of Pharmacy Monash University announced on 27 August groundbreaking drug delivery technology that is destined to become common both in Australia and internationally.

Toronto - The firm of PricewaterhouseCoopers has been appointed receiver of insolvent Hyal Pharmaceutical Corp. after the company acknowledged it was unable to repay $750,000 of debt plus interest and costs, for which it has recently received a demand notice from SkyePharma plc. The move follows the filing of a petition by SkyePharma, a secured creditor of the corporation.

With genetic modification hitting the headlines and consumer concern escalating, many manufacturers are considering their options when it comes to ingredient suppliers. Protein Technologies International (PTI), manufacturers of Supro® soy protein, is the only company in Australia currently able to offer manufacturers a choice when it comes to non-genetically modified (non-GM) isolated soy protein.

On 18 August national chartered accountancy firm, Ferrier Hodgson, was appointed as Administrator to the Brisbane-based biotechnology company, ForBio Limited.

The management of Start-up Australia has been committed to early stage investment for over 5 years and recognises that a specialist fund is required to fill the gap of funding at theseed stage. This type of funding is critical to creating start-up companies and creating value from technological advances, particularly in the life sciences. Start-up Australia has joined forces with US based Research Corporation Technologies to create BioVentures Australia.

RCT is a highly successful technology investor headquartered in Tucson, Arizona. It owns, or is an investor in, a large number of well known biotechnology and pharmaceutical technologies. During 1998, it had project revenues of US$76.2 million. RCT provides a combination of science, business and legal expertise to assess a technology's potential and the work needed to increase its value. The company has extensive international links with the large pharmaceutical companies to facilitate sale or licensing of the technology.

Biodiscovery Ltd's shareholdings have been the subject of scrutiny by an Australian Financial Review writer (Fri 13 August 1999; pages 59,92).

Biodiscovery Ltd is a small Sydney-based biotechnology company with two major projects - a diabetes vaccine being developed in conjunction with the John Curtin School of Medical Research in Canberra. The second is an agreement with Rhone-Poulenc to develop
products from CSIRO's insect library. It has a number of other strategic research partnerships with leading Australian research groups.

One of the most interesting things to come out of the genetic modified food (GMO) debate is the polarisation of the public. In the beginning there were a small number of anti-GMO interest groups pushing their view, often very actively, although with little apparent effect. On the other side were the scientists and industries, often quietly moving along (although there are exceptions) and developing the new technology. In between is the general public, often with interest in biotechnology, but with little access to information.

Dr G David Lin, email: dlin@scu.edu.au School of Natural and Complementary Medicine, Southern Cross University, PO Box 157, Lismore, NSW 2480

The "Herbal Medicine into the New Millennium" - an international forum on the science, regulation, production and clinical application of medicinal plants - was successfully hosted by the Southern Cross University (SCU) in Lismore from 16 to 18 June, 1999. Twenty-seven national and international speakers including Her Royal Highness Princess Chulabhoh Mathidol (Thailand), Professor Varro Tyler (USA), Professor Robert Henry (Centre for Plant Conservation Genetics, SCU) and Professor Peter Waterman (Centre for Phytochemistry, SCU), presented 27 plenary lectures to around 300 participants.

New Thinking in Biotech Forums organised by the De Bono Institute were held in:

Sydney - Friday 28th May 1999
Brisbane - Tuesday 1st June 1999
Melbourne - Monday 7 June 1999

Their Executive Summary of the findings follows :

The `Biotech New Thinking Forums' are the first in a trilogy of `New Thinking Forums' hosted by the de Bono Institute, focusing on separate emerging high growth industries. Attended by a total of 298 biotechnology industry stakeholders and interested parties, the three forums collectively generated 1725 comments, ideas and concepts, captured using the de Bono `Six Thinking Hats' process.

The last meeting of the Canberra region group was held on 28 July in conjunction with the Licensing Executives Society (Australia New Zealand). Over 45 people attended to hear Dr David Irving, of Biotech Australia Pty Ltd speak about lessons from commercialising biotechnology in Australia.

Hallmark Editions, the publisher of R&D Review, has released the third edition of The Australian Research and Development Directory.

The Directory is a valuable reference to research and development policy at Federal and State levels, providing details of funding programs, research agencies and science policy advisory bodies. It also provides the most comprehensive guide to public sector research organisation, including university research centres, Cooperative Research Centres, Major National Research Facilities, collaborative research organisations and independent research institutes.

The California Bio-Science Guide covers bio-science in all of California, from San Francisco to San Diego. The directory includes pharmaceutical firms, bio-medical manufacturers, research and development and medical device manufacturers.

edited by Jeffrey B. Harborne FRS, Herbert Baxter and Gerard P. Moss

The purpose of this dictionary is to provide basic information, including structural formulae, on the most widely encountered plant constituents, with emphasis on those which are biologically active.

With the increasing realization about the importance of the need for public awareness and information about gene technology, it is pertinent to look at what underpins "risk communication", for essentially this is what talking about a new technology involves. In understanding how people perceive and respond to risks, it is then easier to know how to address a communication program. This was topic of a conference on "Public Perception of Biotechnology" held at the Agricultural Research Institute in the USA in the late 80s and it is still highly relevant now.

Risk comprises a hazard component, which can "hurt" us; it is the component that a scientific risk assessment per se is designed to estimate. Risk also comprises an outrage component which covers everything else about risk except how it is likely to harm us; this includes general emotions (e.g. fear, loathing, happiness) and other psychological aspects. A fundamental premise is that people's concerns about risk have more to do with outrage than hazard; ignoring the outrage component tends to trigger it. This leads to the observation by technologists in communicating about their work that the "public worries about the wrong risk".

We tend to dichotomize risk - it is either perceived as very frightening or very trivial. As a consequence, the response is thus either outrage (hysteria) or apathy. We also tend to consistently underestimate the hazard of risks that are low in the outrage component and overestimate those that are high in outrage.

Thus it is important to be aware of the factors associated with risk which are seen as contributing to outrage: these are:

• Voluntary vs involuntary imposition - voluntary "imposition" allows choice and control by the individual and is acceptable; involuntary imposition does not allow choice and hence is unacceptable; this is why labelling is an issue.
• Controlled by the system vs by the individual - this is connected with voluntary/involuntary imposition of risk; gene technology will be seen as less risky if the community feels they have input into decision making; this is why it is important to have lay representatives on Ethics Committees, Institutional Biosafety Committees, Regulatory Committees.
• Familiar vs unfamiliar - familiarity does breed contempt and lead to an underestimation of the risk _-a familiar house-hold product, however carcinogenic, seems less risky than something like gene technology which could be seen as exotic and hence scary, potentially.
• Fair vs unfair - do those that share the brunt of the risk get the bulk of the benefits? There is less likely to be acceptance of the risk of a new technology like gene technology if the benefits are not shared fairly and it is perceived the rewards are reaped by a limited number of stakeholders.
• Memorable vs forgettable - a memorable risk is scarier that a forgettable one eg Chernobyl. There has been no memorable accident/incident of the same scale with gene technology products....to date.
• Dreadful vs not dreadful - it is not really understood what makes some outcomes so much more dreadful/dreaded than others but it is known to be so eg AIDS and cancer are especially dreaded diseases. Are the outcomes of gene technology especially to be dreaded? Some of the outcomes from gene technology about which people express concern are the unknown, long term consequences of the release of genetically modified organisms into the environment eg will herbicide resistant crops become intractable weeds or will they cross with weedy relatives and so spread the herbicide resistance gene?
• Diffuse in time and space vs focused in time and space - attention is drawn to a hazard focused in time and space eg one airline crash killing the same number of people as are killed by road accidents over a year. Thus if there was an occasional large catastrophe resulting from gene technology, this would raise more alarm than a number of smaller isolated incidents.
• Treacherous vs non-treacherous - people respond strongly to feelings that they have been mislead; opposition can be built to a technology by overselling it initially.
• Morally relevant vs morally irrelevant - some risks are "just risks"; others are seen as wrong and not acceptable at any cost. Thus it may be acceptable to use gene technology to treat a person with a disease but not to alter their germ line.

It is interesting to examine how different groups communicate.

Environmental Groups tend to focus on the outrage component of risk - high outrage for high hazards is appropriate but it in not appropriate where they generate high outrage for low hazards ie "beat up the hazard" in terms of the outrage component.

Government and Industry Groups tend to focus almost exclusively on the hazard component. It is important to acknowledge the legitimacy of emotions and to make provision for the community to have input into decisions.

The Media focus on the outrage component of a risk - for without outrage, a hazard story has little interest.

Thus, in communicating about the risks of a new technology it is necessary to inform people about the hazardous component so that they gain an understanding about it. It is also necessary to match the hazard component with the outrage component ie only make serious hazards outrageous, not trivial ones.

The implications of the distinction between hazard and outrage for a public communication program about the application of gene technology is to ensure:

• Provision of clear, easy to understand technical information
• Forums for public discussion on social and ethical issues
• Fostering of communication - through different liaisons/networks
• Involvement of the informed public on decision making bodies eg Regulatory Committees.

People that are better informed about the risks and benefits associated with the application of gene technology can better decide for themselves about the use of the products. The application of gene technology has much to offer. Indeed, "The future of biotechnology will be dictated by market reaction rather than technical feasibility. Consumer reaction to the products of biotechnology is the critical factor determining the ultimate success or failure of this technology in the market place" (Deane 1999).

It is good to see that the recently released Commonwealth Government Discussion Paper on Developing Australia's Biotechnology Future highlights as its first components in a Biotechnology Strategy, the need for public awareness and information as well as concern for ethical issues.

President 1998-99

Deane, C. R. (1999) "Public Perceptions and Risk Communication in Biotechnology"; paper presented at the conference on "Accounting for Risk in International Agreements", Centre for the Practice of International Trade, The Melbourne Business School, 10-11 February 1999. (CD is at the Bureau of Rural Sciences, Department of Agriculture, Fisheries & Forestry, Canberra)

Sandman P.M. (1987) in "Public Perceptions of Biotechnology" pp 219-231 ed.LR Batra and W. Klassen, Published by Agricultural Research Institute, Bethesda, Maryland, USA 20814

NEWS

The Federal Government will need to go "all or nothing" in reducing the Capital Gains Tax rate for overseas investors to zero if they are serious about attracting US and UK venture capital to Australia, a new Deloitte Touche Tohmatsu survey, Venture Capital in Australia, August 1999, indicates.

Even a Capital Gains Tax drop from 36 to 15% would be unsuccessful in attracting 75% of US and UK venture capital investors to invest in Australia, the Deloitte survey shows.

Deloitte's private equity tax partner Rick Taylor and corporate finance partner Chris Blaxall have called on the Federal Government to go "all the way" in reducing the CGT rate for overseas investors to zero, to put Australia on a level playing field with the UK and US in attracting venture capital investors.

Mr Taylor said that broadly speaking, venture capital investors do not pay tax when investing outside their own country, except when they come to Australia where the rate is currently 36%. Under the current Australian taxation system, the returns on investments in Australia would have to be 56% higher for VC funds to get the equivalent after-tax return.

An initial Deloitte survey in April revealed Australia was missing out on an estimated $600 million to $1.9 billion in potential foreign venture capital investment and the related economic growth and employment opportunities that would follow from such investments.

Since then, comments by Prime Minister John Howard and Treasurer Peter Costello, amongst other ministers, have canvassed the idea of a lower CGT rate. Speculation has included suggestions of a reduction to 15-20% for venture capital investors.

"The critical issue is whether merely lowering the CGT rate will be sufficient to remove the roadblock stopping venture capitalists from investing in Australia," Mr Taylor said.

In the latest Deloitte survey, 25 of the venture capitalists who participated in the April survey were revisited, and asked if they would invest in Australia under a 15% CGT.

75% of these venture capital investors said they would not invest under a 15% CGT (the other 25% did not say a definite yes, only that they would consider investing). The 75% who were not impressed with a reduction to 15% said it would take a zero rate of tax before they would invest in Australia.

"A reduction to 15% may bring in a small amount of investment money to Australia, but goes nowhere near close to unlocking the full potential," Mr Taylor said.

"Two of the three respondents to Deloitte who said they would consider investing under a 15% CGT rate stated the amount they would consider would be about $100million at the management buyout stage."

Deloitte's private equity corporate finance specialist, Mr Chris Blaxall, said UK and US venture capital investors had indicated that Australia stands out as one of the few countries in which VC funds would like to invest but were prevented by the existing taxation regime.

"We applaud recent comments by both the Prime Minister and Treasurer that they are aware of the need to address this issue, so that innovative local companies are not forced overseas for funding," Mr Blaxall said.

"The Government seems genuinely keen to attract venture capital and associated expertise to Australia and we feel it is vital that they realise anything other than a zero rate of tax for these overseas investors will continue to place Australia out of step with the rest of the world," he said.

"A better funded, mature venture capital industry in Australia will provide a huge economic boost to this country."

Earlier this year the Australian Venture Capital Association (AVCAL) and Deloitte Touche Tohmatsu made a submission to the Review of Business Taxation calling on the Federal Government to review its stringent tax rules for venture capital funds to allow Australia to join the rapidly expanding global venture capital market. Deloitte Touche Tohmatsu provides a range of advisory services to growing private companies seeking investment, including MBO assistance, raising venture capital and mergers and acquisitions. Deloitte also sponsors the Incubator Scheme for start-up ventures at the Australian Technology Park.

A stringent new system to control all commercial releases of genetically modified products in Australia was recently announced by the Minister for Health and Aged Care, Dr Michael Wooldridge.

The new measures, to be managed by the Interim Office of the Gene Technology Regulator, strengthen existing arrangements by providing a more rigorous, transparent and accountable decision-making system for the commercial release of genetically modified products.

The arrangements flow from an announcement made in the 1999 Budget to establish a permanent Office of the Gene Technology Regulator by 1 July 2001. Funding of $7.5 million over two years has been allocated by the Commonwealth for this task. The Interim Office will put legislation in place to enable the establishment of the permanent OGTR by 1 July 2001.

In the meantime an Interim Office has been established within the Therapeutic Goods Administration of the Department of Health and Aged Care, which will control all applications to conduct research using gene technology as well as any proposals to commercially release GMOs.

The system will be legally enforceable through a contract signed by the Commonwealth and the sponsor of the GMO to ensure that the sponsor complies with the IOGTR's stringent safety requirements.

"There are enormous benefits that can be gained from gene technology, but we have to make sure we get the safety aspect right," Dr Wooldridge said.

"These new arrangements will help safeguard human health and the environment while allowing us to capture the maximum benefit of gene technology for the Australian community, industry and the environment. There are substantial community concerns surrounding the introduction of GMOs into the market and I am confident the new measures will go a long way to allaying those concerns.

"Importantly, the new controls provide many opportunities for community input into decisions concerning general release. They reflect this Government's commitment to assess public health and safety, and environmental safety before other considerations such as commercial, trade or social benefits which result from use of biotechnology."

Dr Wooldridge said the new system had been designed to ensure greater transparency and community involvement in the process that controls the commercial release of genetically modified organisms.

The IOGTR will continue to seek advice from the Genetic Manipulation Advisory Committee, an expert committee that advises on the scientific safety aspects of GMOs, and Environment Australia for all environmental aspects. GMAC monitors and provides advice on all research involving GMOs at every stage - from the initial design concept through to commercial release.

The committee must be satisfied that all risks associated with the research are managed, especially those related to public health and safety and the environment. If GMAC is concerned about the GMO's impact, the research is not permitted to proceed until the concerns have been fully addressed. The current Chair of GMAC is Emeritus Professor Nancy Millis AC MBE.

The new arrangements streng-then the existing regulatory controls for the release of GMOs. Depending on the end use of the GMO, there are a number of other stringent systems, which also protect public health and environmental safety.

These include: the Australia New Zealand Food Authority, the Therapeutic Goods Administration, National Registration Authority, National Industrial Chemicals Notification and Assessment Scheme and the Australian Quarantine Inspection Service (see IOGTR Fact Sheet 1).

For more information, see the IOGTR website at: www.health.gov.au/ tga/genetech.htm

Or the GMAC website at www.health.go v.au/tga/gmac/gmachome.htm

Europe's biggest bank has advised the world's largest investor to sell their shares in leading companies involved in the development of genetically modified organisms because consumers do not want to buy their products.

In a report sent to several thousand of the world's large institutional investors, Deutsche Bank says that "growing negative sentiment" is creating problems for the leading companies, including Monsanto and Novartis.

"We note that Monsanto has spent more than $US1.5 million ($A2.4 million) to persuade English consumers of the rectitude of their position, but alas, to no avail. Monsanto is little match for Prince Charles, an anti-GMO advocate, when it comes to sensitivity for the English people's desires," says the report.

"More broadly speaking, it appears the food companies, retailers, grain processors, and governments are sending a signal to the seed producers that `we are not ready for GMOs'."

(Reproduced from The Age, 26/8/1999.)

The Chairman of the Commonwealth Biotechnology Ministerial Council, and Minister for Industry, Science and Resources, Senator Nick Minchin, launched on 2nd September a biotechnology discussion paper aimed at increasing public awareness and understanding of biotechnology.

"Developing Australia's Biotechnology Future, outlines the issues that need to be considered in developing a national biotechnology strategy, including public awareness and information, research and development and ensuring the safety of people and the environment", Senator Minchin said.

This discussion paper provides the opportunity for the public to be involved in developing a national biotechnology industry strategy in Australia.

"Two strengths of the Government's biotechnology approach are its commitment to transparency and a strong regulatory environment, and this discussion paper will play an important role in promoting informed debate within the community.

"The Government's aim is that, consistent with safeguarding human health and ensuring environmental protection, Australia captures the benefits of biotechnology for the Australian community, industry and the environment.

"Australia has a strong research base in biotechnology with the potential to develop this into important applications for many sectors. Biotechnology will have major implications for all countries in terms of production, comparative advantage, trade and economic growth, particularly in the agricultural, food and the medical and pharmaceutical areas", Senator Minchin concluded.

The paper was developed by Biotechnology Australia, a cooperative initiative involving five Commonwealth departments: Industry, Science and Resources; Education, Training and Youth Affairs; Agriculture Forestry and Fisheries - Australia; the Health and Aged Care; and EnvironmentAustralia.

Developing Australia's Biotechnology Future can be accessed from the Biotechnology Australia web site http://www.isr.gov.au/ba or by phoning 02 6213 6499. The closing date for submissions is 7 October 1999.

Senator Minchin also launched a CSIRO gene technology web site (http://genetech.csiro.au), sponsored by Biotechnology Australia, which will help explain the science behind gene technology and how the technology will be used.

Senator Nick Minchin, Minister for Industry, Science and Resources, today called for industry and researchers to develop new proposals for government funded research. The Minister intends to make a formal call for applications for a new round of funding for Co-operative Research Centres (CRCs) in November 1999, with the closing date for applications expected to be 5 July 2000.

"The CRC program is highly effective at capturing the benefits of research by establishing long-term strategic relationships between researchers and industry," according to Senator Minchin. There are currently 65 CRCs with funding of $140 million per year from Government and $320 million per year in commitments from other participants, including industry, Universities, the CSIRO and State Government bodies.

CRCs carry out research in manufacturing technology, information and communication technology, mining and energy, agriculture and rural based manufacturing, environment and medical science and technology.

"CRCs make strong achievements in transferring knowledge and technology to industry and have taken a new approach to technology transfer by closely involving industry in the strategic planning and management of research.

"This approach ensures that the public sector research effort is better aligned to market signals and hence largely avoids the problem of generating `orphan intellectual property' that is left looking for investors at the end of the research process."

The opportunities and challenges of biotechnology and its impact on Australian agriculture were highlighted at a meeting of the Agricultural and Resource Management Council of Australia and New Zealand (ARMCANZ) in Sydney.

ARMCANZ, the premier forum for Australia's Agriculture Ministers, stated the benefits of biotechnology will be increased productivity of agriculture and the more stable availability of food for the world market. It will provide more reliable supplies of food and also raise the overall quality and choice of products available.

ARMCANZ heard that the Commonwealth would establish the Office of the Gene Technology Regulator to complement Biotechnology Australia and the development of an Agrifood Biotechnology Statement in cooperation with the States.

Ministers agreed to work together to improve the public's knowledge and understanding of the benefits of biotechnology and expressed concern that farmers will need to come to grips with issues such any necessary segregation of genetically modified products both on farm and through storage, handling and distribution systems.

Professor Frank Fenner celebrated the 50th anniversary of his appointment as the founding Professor of Microbiology at the John Curtin School of Medical Research, in the Australian National University in August.

Professor Fenner is internationally recognised for his work with viruses.

During the 1950's he traced the effect of the Myxoma virus on the wild rabbit population. These studies are regarded as unique because they showed how a small proportion of the rabbits were sufficiently resistant to the virus to survive, and re-colonize the Australian landscape.

During the 1960's Professor Fenner was appointed as advisor and then chairman of the Global Commission for the Certification of Smallpox Eradication. Professor Fenner, his colleagues D.A. Henderson and Isao Arita and their team followed all leads to isolate the virus and prevent contact with new human hosts.

The last recorded case of smallpox was in 1977 in Somalia. Although in 1978, a sample leakage from a lab in Britain led to the death of a photographer and the establishment of strict worldwide controls on the storage of smallpox supplies.

In 1979 the scientists reported to the World Health Organisation that smallpox had been eradicated. This is still regarded as the greatest ever achievement in international public health. The Japan Prize (Preventative Medicine) was awarded to Professor Fenner and his colleagues DA Henderson and Isao Arita for their part in the global eradication of the virus in 1988.

Professor Frank Fenner was appointed as Director of the John Curtin School of Medical Research from 1967 to 1973. Then in 1973 he became the founding Director of the ANU's Centre for Resource and Environmental Studies. He has written more than 16 books and numerous scientific papers. The ANU has recognised his ongoing contribution in part, with the naming of Fenner Hall on Northbourne Avenue.

From 5-7 October, 32 Australian biotechnology companies and research bodies will be showcasing their capabilities in biotechnology at BioTechnica '99, one of the world's leading biotechnology trade fairs, in Hanover, Germany.

The Federal Government is providing almost $800,000 to establish Australia's presence at this event in Germany, to forge links between Australia and the European Union and allow the companies to demonstrate their capabilities and achievements and attract European interest in collaborative partnerships.

"Biotechnology offers significant opportunities for Australia," Senator Minchin said, "And we have considerable strengths in areas of agriculture and medical research, with many universities, cooperative research centres and companies developing new products and processes that could have applications around the world."

Attendance at Biotechnica '99 will be a major highlight of a government-funded ten-day `biopartnering' project which will include participation in Biotechnia '99 and visits to Berlin and Potsdam.

The participating companies and research organisations were selected through a competitive application process, and will receive subsidised assistance with travel, accommodation, logistics, business networking and stand space BioTechnica '99.

During the fair, Australia will host several functions, including a special forum and a reception involving presentations, press interviews and seminar sessions on our strengths in biotechnology. "Expected benefits for Australia include increased collaboration between Australian and German industry and researchers, increased German investment in Australian biotechnology industry, new export opportunities for Australian biotechnology companies and the diffusion of technology via collaboration," the Minister said.

The Australian Government's Chief Scientist, Dr Robin Batterham, will be a key presenter at an innovation forum and, on behalf of the Minister, will launch the first-ever comprehensive report on the biotechnology industry in Australia, maximising the opportunity to promote Australia's strengths and capabilities in biotechnology at the fair.

Ernst & Young is a key partner in this exercise and has provided expert assistance to define an up-to-date account of the Australian biotechnology industry and to help foster stronger international relations in biotechnology between Australia and the European Union

1. Bresagen Ltd, SA

2. Gropep Pty Ltd, SA

3. Biotech Australia Pty Ltd, NSW

4. AMRAD, Victoria

5. ForBio Inc., Qld

6.Progen Industries Ltd., Qld

7. Food Technology Innovations Pty Ltd (University of NSW), NSW

8. CRC for Bioproducts, Victoria

9. BioWest Australia and State Agric. Biotech Centre (University of WA), WA

10. Grains R&D Corporation ACT

11 and 12. CSIRO Molecular Science, NSW-Victoria

13. Centre for Drug Development and Design (University of Qld), Qld

14. Hamilton Laboratories, SA

15. University of Western Sydney (Nepean), NSW

16. Monne International Pty Ltd, Victoria

17. Parallel Biotechnologies, NSW

18. Baker Medical Research Institute, Victoria

19. Australian Institute of Marine Science, Qld

20. Southern Cross University, NSW

21. Biosaline Lake Reference Centre (University of WA), WA

22. Flinders Bioremediation Pty Ltd, SA

23. Aquaculture CRC Ltd, Tasmania

24. Fucell Pty Ltd (University NSW), NSW

25. CRC Molecular Engineering and Technology, NSW

26. Flinders Technology Pty Ltd, SA

27. Australian Genome Research Facility, Qld/Vic

28. Clinical Network Services Pty Ltd, Qld

29. Luminis Pty Ltd, SA

30. Anutech Pty Ltd, ACT

31. UniQuest Pty Ltd, Qld

32. Sigma Aldrich, NSW

Local Virus behind Newcastle Disease Outbreaks

Major outbreaks of Newcastle disease in poultry in Australia over the last two years were due to a change in a home-grown, milder strain, and not from an incursion from overseas.

Dr Peter Daniels says genetic sequencing of the virus was the key to determining the origin of the two Newcastle disease outbreaks in the Central Coast and Western Sydney regions of New South Wales.

"Comparison with the genetic `finger-prints' of known overseas and Australian strains, pointed to the origin of the virus. This clearly showed that the outbreak was caused by a highly virulent Newcastle disease virus that had mutated from an existing, milder virus strain already present in Australia.

New South Wales Chief Veterinary Officer, Dr Dick Jane, says CSIRO's Australian Animal Health Laboratory (AAHL) played a crucial role in providing fast information about the virus to NSW Agriculture, the agency that successfully managed the control of the Newcastle disease outbreaks.

"This allowed us to respond quickly to the outbreak, and choose an eradication strategy based on the best scientific information," says Dr Jane. The small mutation (or change) in the milder virus which caused it to become highly virulent occurred in a crucial section of the genetic material of the virus. This section of viral DNA codes for a protein called the `F protein'. It is the F protein that controls how the virus accesses different tissues of the bird. Mild, low-virulent viruses only access superficial tissues, for example the lining of airways. Highly-virulent viruses, however, can infect all tissue layers, and can also infect the brain, leading to large numbers of bird deaths.

Newcastle disease viruses are present in most countries including Australia, but aside from the NSW outbreaks early this year and late last year, serious disease-causing strains have not occurred in the country since 1932.

Australian scientists and industry have been aware of mild Newcastle disease strains that have been circulating in Australian poultry, without causing significant disease, for over 30 years.

Gene technology will make a key contribution to a healthier, wealthier and more sustainable Australia in the 21st century, members of the Queensland Parliament were told recently.

Dr Elizabeth Heij, Chief of CSIRO Tropical Agriculture, told the first CSIRO Science Briefing for Queensland parliamentarians that the new technology promises to provide ways to increase efficiency, decrease costs and give better control over the end product for farmers and retailers alike.

"Gene technology will make a key contribution to a healthier, wealthier and more sustainable Australia in the 21st century," Dr Heij said. Describing how scientists go about genetically modifying organisms, Dr Heij pointed out that the processes in themselves were safe. "However, we, as scientists, do need to recognise the concerns and fears of the community. We need to ensure that we effectively communicate with the community on what we are doing, why, and at what risk. This is what the CSIRO Science Briefings are all about."

Ms Carole Renouf, Australian Consumers Association told the parliamentarians that there is a need to reframe the GMO debate in terms of democracy and technology, the limits of science, consequences for Australian society and offering the public a chance to deliberate and participate. "As we see it, the debate is not about sound science, consequences for the economy, public misunderstanding or informing the public of its benefits," Ms Renouf said. "As citizens in a strong democracy, we have rights and views such as the demand for labelling, and we want to have a say in the shaping of decisions. We are also well aware of the political value choices of these new technologies and many consumers are uneasy about some of the choices gene technology represents."

Mr Bernie Brookes, General Manager of Woolworths Queensland, told the Briefing that more than 60% of common foods contain the ingredient soya. "As such, the majority of the foods we eat today are genetically modified," he said. "However, Woolworths supports and endorses the Australian Regulatory process established by the Federal and State Governments to assess these products. We understand the foods currently being assessed are of plant origins, specifically soy and cottonseed." Mr Brookes said that, confronted with the dilemma of genetically modified crops, farmers have to decide whether they support the technological revolution that may deliver cleaner, greener farms, or oppose it for fears that the supermarkets won't support them at the supermarket.

"Woolworths has already benefited from `breeding' in agriculture and horticulture," Mr Brookes said. "In partnership with Breeders Rights International, we have introduced varieties such as Truss Tomatoes, Tropical Melons, Royal Blue, Symfonia and Gold Star potatoes, and Sophia's Pride pears. Such initiatives demonstrate the potential benefits of value adding, such as flavour enhancement, season extension or quality enhancement. And while these products are bred rather than genetically engineered, they are examples of what can be done to enhance the qualities of products."

Research into probiotic bacteria and applications of probiotics in foods, yoghurts and beverages is being closed by management of Food Science Australia. This will result in the loss of up to eight staff . It is believed that over 20 staff will lose jobs in Food Science Australia in coming months. Food Science Australia is a joint venture of CSIRO and the Victorian Government's Afisc, set up some two years ago. These job losses are typical of those occurring right across CSIRO, with CSIRO's Divisions of Forestry and Forest Products, Tropical Agriculture, Wildlife and Ecology, Textile and Fibre Technology and Animal Production all being hit with major staff lay offs.

Probiotic and prebiotic research is vital to the development of new health foods - the so-called nutraceuticals. So the Food Science decision is a surprising one in view of the global boom in this area. The Melbourne-based Food Science group is leading in Australia in this area, and has strong international collaborations in the Netherlands, France and Finland. Its loss will be a major blow to Australian industry, particularly the dairy sector.

Dr Martin Playne, who leads the probiotic group (and is also Editor of "Australasian Biotechnology"), is attempting to re-establish the probiotic team by affiliation to Melbourne-based universities, and is seeking urgent funding support and company contract work on probiotics and prebiotics. The group has leading expertise in the selection and development of probiotic bacteria, particularly bifidobacteria, and in prebiotic carbohydrates, such as oligosaccharides and resistant starch. The changes are likely to take effect by the end of November. Dr Playne can be contacted through this journal's office (see front page), or after hours on (03) 9598 9818.

Dr Tony Weiss this month will receive the prestigious Amersham Pharmacia Biotechnology Medal for his internationally recognised work on human elastin.

Dr Weiss heads a large research team at the University of Sydney that discovered ways to make big quantities of pure tropo-elastin, which our bodies use to make elastin. Elastin is found wherever elasticity is required, such as the skin, arteries, lung, ligaments, uterus and bladder.

It serves as the body's rubber-like protein. Its resilience allows tissues to expand and recoil, such as in the aorta, which undergoes regular pulses during the billions of heartbeats in a lifetime.

Dr Weiss's world-first discovery has significant applications in human wound repair, which until now has relied on potentially contaminated animal substitutes. "It will allow us to understand how the human body makes tissue and repairs injuries," says Dr Weiss.

In addition to the Medal, Dr Weiss will be given a travelling speaker's Award to talk about his discoveries around Australia.

The Medal and Award will be given in a ceremony in September. His previous awards include Fulbright, NIH Fogarty and Royal Society Exchange Fellowships in the USA and UK.

Following a career spanning over twenty years in corporate agribusiness, David Campbell has established two new independent consulting businesses to progress interests in the areas of technology development and transfer, strategy development and implementation, and capability and skills development. He will operate these businesses as "Leading Dog Consulting" providing leading edge strategic management solutions, and "Agribusiness @ Work" providing an integrated approach to improving the sustainability and competitiveness of agribusiness. He will team with other leading edge professionals in Australia and elsewhere, when necessary, to provide such services with even greater customer value.

Most recently, David was Commercial Development and Technology Manager with Pivot Limited, Australia's largest farmer owned agribusiness co-operative supplying fertiliser, stockfeed, grain, agronomic advisory services and output marketing of grain and wool. In this role, he was responsible for new product and technology developments, and the development and support of Pivot's revolutionary Prescription Farming program.

He can be contacted on (03) 9787 5026 (phone/fax), 0408 106949 (mobile), or at dcampbell@ozemail.com.au

The third issue of AgBio Forum is now on-line at http://www.abgioforum.missouri. edu/The evolving role of private investment in public research universities is discussed, along with its implications for the future of the Land Grant university system.

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Dear Colleague

We are pleased to inform you that from now on the EFB Newsletter will be available in the Internet. You may either read it directly under the Federation's homepage http://dechema.de/efb.htm or you may download and make a print-out of the document. Please do not hesitate to contact us if you do not have access to the Internet. In that case we shall let you have a print-out. Comments on the Newsletter are of course welcome.

The newly published 1999 edition of the European Biotechnology Directory reveals the fastest growth in the European biotech sector is coming from Germany.

Dr Gerd Romanowski of the German Association of Biotechnology Industries in one of many articles included in the directory writes that in the last four years, the situation in Germany has changed dramatically. According to Dr Romanowski, the BioRegio competition, initiated by the German Federal Research Ministry, marked the starting point of this boom, which has lead to the whole of Germany being caught up in a veritable biotechnology euphoria. In this process seventeen bioregions have been formed competing for prizes and funds. In total, the German Federal Research Ministry has spent close to DM1,000M in 1998 to support biotechnology in Germany.

The macro-economic effects of this German boom in biotechnology are already manifesting themselves today. The small and medium sized companies are already employing approximately 11,000 people. Furthermore, the added value of biotechnology is manifested by the fact that 23 large companies that are conducting research and are involved in the production in the Life Sciences sector in Germany are already generating sales of around DM3,000M today with biotechnology products. In total, the sales of German big, medium sized and small companies with biotechnology activities accounted for DM4,400M in 1997.

At a National Press Club Morning Newsmaker's briefing last week, BIO President Carl Feldbaum chided celebrities, such as Prince Charles, for committing a public disservice by speaking out against science despite knowing little or nothing about it.

"Although Prince Charles has no apparent expertise on the subject, he has declared himself unalterably opposed to genetically mofidied plants," Feldbaum said. "He counts on his celebrity to elevate his comments to the same status as that of an acknowledged expert."

The danger, Feldbaum pointed out, is that "the less people know about a particular issue, the more likely they are to mistake celebrity opinion for fact."

While praising celebrity fundraising for medical research, Feldbaum signaled out actors Alec Baldwin and Jennie Garth of Beverly Hills 90210 for sending crossed messages to the American public regarding the use of animals in research. Feldbaum concluded, "They just don't know enough about the issues they use their star power to highlight."

The briefing also covered a potential Medicare drug benefit and regulatory and patent issues. Among the news organizations that reported on Feldbaum's speech was the London Independent.

A new joint venture biotechnology investment company, Biotron, has been formed to finance the development of a portfolio of biotechnology products arising from a new `platform technology' which has resulted from the world of Professor Peter Gage and members of the membrane Biology Program at the ANU's John Curtin School of Medical Research.

The joint venture involves ANU, its commercial arm, Anutech, the research team and Sydney businessman, Peter Scott.

The platform technology is based on work on ion channels in cell membranes, and may lead to treatments for a range of human diseases and disorders, including AIDS, heart attack and stroke.

The technique has led to the identification of an ion channel that is involved in the death of cells following heart attack or stroke, and the development of a compound, C14, which is effective in blocking this ion channel and, with further development, may help patients recover from these illnesses.

Source: Australian R&D Review, (June 1999)

Biowest Australia, Perth, Australia and AgDirect Australia, a company owned by two West Australian farmers, have formed Grain Biotechnology Australia Pty Ltd (GBA). Stewart Washer, spokesman for Biowest, is confident that other investors will join the venture.

Washer says GBA's strength would be in its ability to use its biotechnology and breeding capabilities to introduce superior genes into wheat, which is Australia's biggest crop. GBA's income will be derived from royalties collected on deliveries of crops and through premiums on contracts with farmers who grow specific varieties with modified starch content, herbicide resistance and pesticide resistance.

Source: AgBiotech Reporter (June 1999)

The first clinical trials are now getting underway at the new world-class medicines research unit at The Prince of Wales Hospital in Sydney.

The 13-bed Unit is one of only four established by Glaxo Wellcome worldwide and will carry out early stage trials of new medicines in healthy volunteers.

Phase I clinical trials are a crucial step in the development of effective new medical treatments and will provide a major boost to Australia's research capabilities. Some of the first trials at the Unit involve research into new forms of drugs designed to treat migraine, investigations into asthma and allergic rhinitis treatments, the development of new therapies for reducing high blood pressure and drugs for lowering blood fat levels.

The new Unit was named the James Lance Glaxo Wellcome Medicines Research Unit in honour of Professor James Lance OBE, AO, an Australian world-renowned researcher in neurology.

The Unit's Director, Associate Professor Tony Johnson, said the new Research Unit will play a major role in turning drug discoveries into medicines and therapies that are safe and effective for treating disease.

The Unit will be fully funded and administered by Glaxo Wellcome Australia in a unique collaboration with The Prince of Wales Hospital and the NSW Department of Health.

Benefits to flow from the project include enhanced teaching and research capabilities, attraction of top research projects and scientists to Australia, as well as local job creation.

Dr Mike Devoy, Medical Director at Glaxo Wellcome Australia, said the company has been committed to establishing such a Unit in Australia for several years.

"Establishing this facility at The Prince of Wales Hospital is part of our long-term commitment to developing the capability to take new medicines from `molecule to market' within Australia," Dr Devoy said. "We are pleased the new Research Unit can be established alongside the world-class research facilities already established at The Prince of Wales Hospital."

Phase I trials are designed to establish the safety profile and recommended dosage of a medicine. As with all phases of clinical trials, each project requires ethics committee approval, complete documentation, participant consent and thorough monitoring.

Glaxo Wellcome will be researching new medicines in many areas of unmet medical need, including the area of neurosciences and this will involve close collaboration with The Prince of Wales Hospital's Neurosciences Program and Medical Research Institute.

The Unit will undertake approximately 12 clinical trials per year during the 20-year lease and employ 13 full time and a number of casual staff when fully operational.

A CSIRO Animal Health team has developed a method to deliver natural proteins, cytokines, into animals, in combination with better vaccines. Cytokines are proteins produced by the body's own defence mechanisms to help fight disease.

CSIRO Animal Health Vaccines and Therapeutics Program Manager, Dr Adrian Hodgson says adenoviruses include harmless viruses that can be engineered to act as a vector or `taxi' to carry part of a disease-causing virus as a `passenger' into an animal.

"This part on its own will not cause disease, but alerts the animal's immune system to recognise and kill disease infected cells, effectively producing a vaccine. The modified adenoviruses can also carry beneficial natural molecules such as cytokines," says Dr Hodgson. Delivery of cytokines to chickens through this method has led to improvements in health, resulting in weight gain of up to 11 per cent, with a lower food conversion rate than the commercial average.

CSIRO is moving ahead with the development of better strains of wheat, barley and other crops using modern genetic technologies, the Chief of CSIRO Plant Industry, Dr Jim Peacock said on 3rd September.

Dr Peacock was responding to a media report which claimed CSIRO was putting gene technology crops on hold. "CSIRO is not considering `holding off' on releasing genetically modified cereals," he said. "But we believe the commercial release of genetically modified cereals may be as much as five years away, because it will take this time to develop and test new varieties and ensure all material is rigorously assessed by Australia's regulatory organisations.

"In the next five years, we will have better crop varieties which use the information gained from gene technology research. This technology is providing researchers with knowledge which explains how plants function, at the molecular level. This knowledge allows researchers to develop better varieties through traditional breeding, using new tools. It allows researchers to develop new crops more efficiently and faster and meet breeding objectives that were previously achievable."

Dr Peacock said that as public interest in gene technology increased, the five-year time frame would ensure that the public had access to balanced and accurate information about gene technology. "CSIRO believes it is essential that Australians feel comfortable with their understanding of this technology in order to decide about the role it will play in their lives," he said.

"CSIRO believes gene technology offers great potential for Australia, its community and industries. It gives us the potential to improve our health, create a safer and more secure food supply, generate greater prosperity and attain a more sustainable environment. As scientists working on behalf of Australia and its industries, CSIRO is committed to making our national food supply as clean, safe, wholesome and sustainable as careful research can make it."

Last month, Australian food manufacturers including the Sanitarium Health Food Company, Cadbury-Schweppes, Master Foods Australia, Mars Confectionery of Australia, Wyeth Australia and Heinz Watties Australasia confirmed that they either had changed to GM-free sources or were going that way. They all said they believed GM foods were safe but consumer sentiment precluded their use.

The Minister for Health, Dr Michael Wooldridge, is expanding the genetic manipulation advisory committee to include experts in public health as well as in basic sciences.

Rocks from the remote Pilbara region of northwestern Australia contain chemical traces of our most distant ancestors that are nearly one billion years older than previously known.

The discovery, published in the leading international journal Science, was made by Jochen Brocks and Dr Roger Buick from the School of Geosciences, University of Sydney, and Dr Graham Logan and Dr Roger Summons from the Australian Geological Survey Organisation (AGSO) in Canberra.

The team of scientists discovered modified steroid molecules, including derivatives of cholesterol, in shales from a drill-hole beneath the Hamersley (Karijini) Range near Wittenoom in Western Australia.

These molecules are only produced by eukaryotes, organisms with complex cells containing a nucleus. The eukaryotes, a group that includes humans along with all other animals, plants, fungi and algae, form one of the three fundamental subdivisions of life.

Because of their complexity, eukaryotes were generally thought to have evolved relatively late in the Earth's history. The discovery pushes the date for their appearance back into the Archaean period, the earliest part of geological time.

The scientists used sophisticated equipment in AGSO's Organic Geochemical Laboratory to isolate and identify the molecules, called "biomarkers". They proved that the biomarkers were billions of years old and not younger contaminants, by new techniques of ultraclean sample preparation and by comparative analyses of different rocks from the same drill-hole. The shales yielded much larger quantities and many more types of biomarkers than the other rocks, showing that the chemical fossils were indigenous and did not come from modern or ancient oil pollution.

As ion microprobe geochron-ology of zircons had previously shown that the shales were 2.7 to 2.6 billion years old, the biomarker molecules are thus by far the oldest known. Though their chemical characteristics indicate that the ancient steroids came from the cell membranes of eukaryotic organisms, it is still unknown just how complex these organisms were. Based on past discoveries, they were probably microscopic algae.

Jochen Brocks, the student who devised and conducted the experiments, did not believe the results at first, but after a year of further testing, he and his colleagues were finally convinced that the findings were correct.

The team is now searching even older rocks, using the same techniques, for more ancient evidence of eukaryotes and other types of organisms. They are also looking for the preserved remains of the organisms that produced the steroids. If successful, this work will help clarify the earliest evolution of life and perhaps even reveal what our ultimate ancestors looked like.

Funding from Venture Capital Companies to Develop New Anti-clotting Drugs to Prevent Heart Attack and Stroke

Thrombogenix Pty Ltd, a Melbourne-based biotechnology company, has obtained its second round of investment from Macquarie Technology Funds Management, Momentum Funds Management and the Australian Technology Group Limited (ATG). These funds will enable it to further develop a promising new class of anti-clotting drugs.

Thrombogenix, a company whose shareholders include these investors, Montech Pty Limited and the researchers who made the initial discovery, is developing this new class of drugs as part of its pipeline of products which originated at the Australian Centre for Blood Diseases at Monash University.

Mr Stephen Robinson, a Director of Start-up Australia, the venture capital company which made the initial investment on behalf of ATG, said that the ability of the Company to attract venture capital from two additional investors is an indication of the strength of the opportunity available within Thrombogenix to develop these drugs for important global markets.

The core discovery is a mechanism important in the clotting process which leads to heart attack and stroke, and which has not been previously identified.

Dr Kathy Kociuba, an investment manager for the venture capital group, Macquarie Technology Funds Management, said "the research team, led by Professor Hatem Salem and Dr Shaun Jackson, has capitalised on the initial discovery by generating compounds which could potentially be developed into products that prevent clotting. We see this is as a significant step in the development of novel drug therapies and diagnostic products."

Dr Ergad Gold, a Director of Momentum Funds Management, which manages one of the Federal Government's Innovation Investment Funds (IIFs) specifically aimed at increasing venture capital investment in early stage companies, believes the potential markets for drugs which treat blood clotting is more than $1.5 billion per annum. "Thrombogenix has the potential to develop products which will take a significant share of this market," he said.

Dr Elane Zelcer, the CEO of Thrombogenix said that the additional investment will enable the Company to focus on development of its new drugs and an exciting new diagnostic product. "Having gone through the start-up phase, the Company is now in an initial growth phase. Thrombogenix will employ additional scientists, more than doubling the current number within 6 months."

As part of its growth, Thrombo-genix has now attracted Mr Bob Moses as non-executive Chairman of the Company. Mr Moses is a senior executive at CSL Limited. He has considerable experience working with high technology start-up companies and is enthusiastic about the opportunities available to Thrombogenix.

The scientists responsible for the initial discovery are Professor Hatem Salem and Dr Shaun Jackson. Professor Salem is Head of the Department of Medicine at Box Hill Hospital and Dr Jackson is an NH&MRC Research Fellow and Haematology Registrar at Box Hill. He received the inaugural Victorian Premier's Award for Excellence in Medical Research in 1995 for his research into blood clotting. Both Professor Salem and Dr Jackson recognise the clinical need to have a class of anti-clotting drugs with fewer side effects and better control over the clotting process than those currently available.

Thrombogenix has a strategic alliance with the Australian Centre for Blood Diseases (ACBD), a research centre based at Box Hill Hospital and supported by the Victorian and Federal Governments. The Centre is regarded as a world leader in research into blood diseases. The alliance between Thrombogenix and the ACBD is an example of industry capitalising on the high calibre biotechnology research in Victoria. The outcomes of the Company's development program will have significant benefits to the community.

Biota Holdings Limited (ASX:BTA) announced recently that Glaxo Wellcome has received regulatory approval from the US Food and Drug Administration (FDA) to market Relenza® (zanamivir for inhalation) for the treatment of influenza A and B.

The approval comes after a three-month extension granted by the FDA to further review the New Drug Application for Relenza. This extension followed the agency's Antiviral Drugs Advisory Committee meeting where Relenza was reviewed. Over the past three months Glaxo Wellcome has provided the FDA with additional information in an effort to ensure that all comments, questions and suggestions from FDA and the Advisory Committee were addressed.

The drug is indicated for treatment of uncomplicated acute illness due to influenza virus in adults and adolescents 12 years and older who have been symptomatic for no more than two days. Patients inhale Relenza orally using a hand-held device called a Diskhaler. This route of administration optimises delivery to the respiratory tract and reduces the potential for systemic absorption and consequently the potential for side effects. Administered within the first 2 days of symptom onset, Relenza reduces the duration of flu-related symptoms. Patients orally inhale 10 mg of Relenza twice a day for five days.

Biota's CEO Dr Hugh Niall said "this is another step on Biota's journey toward joining an exclusive group of biotech companies worldwide with products on the market, a revenue stream and prospects of profitability. What separates leaders from the pack is products. With Australian, US and EU approvals to market Relenza in hand, we now await Japanese and other country approvals from around the world." Biota is due to receive an approximately A$4.0 million milestone within 14 days of approval by the FDA, this is followed by an advance royalty of approximately A$4.0 million within six months of the first sales of Relenza in the United States.

Biota Holdings Limited has lodged its results for the year ended 30 June 1999.

The company reported total revenues of $3.07 million, compared to $1.77 million for the previous year.

Revenues for the year included $0.30 million from the first sales of Biota's influenza diagnostic FLU OIA®, an AusIndustry R&D Start Grant payment of $0.74 million for Biota's rhinovirus project, and $1.9 million interest income.

The consolidated net loss for the period was $5.96 million or $0.08 cents per share. This compares with a loss of $6.46 million or $0.09 cents per share in 1997/98. Research and Development expenses totalled $7.5 million as compared to $6.3 million in the previous year.

Biota's net assets at 30 June 1999 were $36.48 million compared to $40.51 million at the end of the previous year. Biota's Chief Executive Officer, Dr. Hugh Niall, said "This has been a landmark year for Biota. During 1998/99 Biota saw its first products launched on to global markets."

Biota Holdings Limited advises that Glaxo Wellcome K.K. (Japan) has announced that it had filed with the Japanese Ministry of Health and Welfare (MHW) on 2 August 1999, for approval to import the inhaled anti-viral drug, zanamivir, for the treatment of influenza A and B.

Zanamivir is already marketed as Relenza in Australia and New Zealand and has been approved in the US and all 15 countries of the European Union and Switzerland.

Zanamivir is the first of a new class of drugs which has an innovative effect of inhibiting an enzyme called neuraminidase which releases the influenza virus from an infected cell. Zanamivir prevents the spread of infection from one cell to another within the respiratory tract - the primary site of viral replication.

Martin D Madaus, Joanne P Spadoro and David B Thomas have been named vice presidents of Roche Molecular Systems, Inc.

The announcement was made by Kathy Ordonez, President of the biotechnology company.

Martin D Madaus, PhD, is the new vice president of business development for blood screening. In mid-1997, Roche entered the blood and plasma screening market with products using polymerase chain reaction (PCR) technology. "We plan to market fully automated screening systems that can simultaneously test for several viruses," said Ordonez. "Martin Madaus's leadership, scientific, and communication skills make him the ideal person to exercise global oversight of all business activities in support of the blood screening program." Madaus served most recently as president and general manager of Roche Diagnostics-Canada. He earned his PhD in veterinary medicine at the University of Hannover, Germany.

Joanne P Spadoro, PhD, has been named vice president, operations. Spadoro joined Roche Molecular Systems, Inc., in 1990 as a senior scientist for diagnostic development. In 1997, she became director, diagnostic development, and was responsible for the development of the AMPLICOR(R) and COBAS(R) PCR-based diagnostic products for the detection of infectious pathogens. Spadoro served most recently as director, blood screening development, and senior director, operations. She earned her bachelor's degree from Douglas College, New Brunswick, N.J., and her doctorate at the University of Connecticut. She is a member of the American Society for Testing and Materials, and of the American Society for Microbiology.

"Joanne Spadoro's extensive knowledge of the AMPLICOR(R) product line, her strong management skills, and recent experience in manufacturing will serve her well in this new capacity," said Ordonez.

David B Thomas has joined Roche Molecular Systems, Inc. as vice president for regulatory and clinical affairs. "His responsibilities will encompass oversight of all global regulatory and clinical trial activities for our organisation," said Ordonez, "including interface with the Food and Drug Administration and support for all outside the US product registrations."

Thomas has broad experience in clinical trials, regulatory affairs and quality management, having held lead positions in these areas with DepoTech Corporation, Ares-Serono, and Pfizer. He has managed the design and execution of clinical studies and the registration of both pharmaceutical and diagnostic products. Thomas holds a master's degree in human biology with a concentration in biostatistics from the University of California, Los Angeles. He is a member of the Regulatory Affairs Professional Society and the Food and Drug Law Institute. Previously, he held key assignments with the Health Industry Manufacturing Agency (HIMA), including chairman of the Drug/Device Task Force.

F H Faulding & Co Limited (Faulding) recently announced that is Faulding Healthcare business unit has acquired the business interests of the Brisbane-based health supplement company Queensland Biochemics Pty Ltd, which trades as Golden Glow Natural Health Products (Golden Glow).

The acquisition of the Golden Glow brand positions Faulding as Australia's number one vitamin and health supplement company, complementing the existing Cenovis®, Vitelle® and Faulding® brand names.

Group Managing Director/Chief Executive Officer of Faulding, Dr Ed Tweddell, said that the purchase of Golden Glow is expected to be immediately incremental to earnings per share and demonstrates the clear focus the Company has on building its profitable core businesses.

"The development of a focussed consumer products division concentrating on product categories that have good long-term growth prospects has been very successful for Faulding," Dr Tweddell said. "This acquisition fits perfectly with that strategy and will strengthen our position going forward."

Golden Glow specialises in natural-based health supplements, predominantly in the vitamin, herbals and minerals category, but with growing markets in areas such as aromatherapy and other natural remedies.

Established in 1976 and operating from Brisbane, Golden Glow has developed a highly successful product innovation and distribution business based on direct marketing. It now employs more than 100 people in Australia and New Zealand.

Golden Glow will continue to operate from its purpose-built Brisbane office.

Faulding Healthcare is a business unit of F H Faulding & Co Limited, which is a diversified worldwide health and personal care company, listed on the Australian Stock Exchange. Faulding's principal businesses are generic oral and injectable pharmaceuticals, consumer health products, the provision of distribution and retail management services to pharmacies and logistics management services to hospitals. Faulding markets its products to and has representation in over 70 countries.

The combined results of six international clinical trials show the new Australian-developed anti-influenza medication called Relenza (zanamivir) can speed-up recovery from the symptoms of influenza by three days in many sufferers.

The analysis showed those aged over 50 who catch the flu, as well as anyone with severe symptoms of influenza, will recover three days earlier if they use the anti-viral medication early in their illness. This 40 percent reduction in the duration of influenza was reported in a study released this week at the 21st International Congress of Chemotherapy at Birmingham in the UK.

Professor Chris Silagy, Australian influenza expert and member of the International Influenza Advisory Panel, said this new analysis came out of combined data on subgroups of patients across all of the placebo-controlled double-blind clinical trials published on Relenza. "This study shows that the people who stand to suffer most from the complications of influenza - older patients and those who have very severe symptoms - will benefit enormously from treatment with this new anti-viral medication," Professor Silagy said. "One of the key elements in their fast recovery from the flu was that treatment began within 48 hours of the onset of symptoms," he said.

The pooled analyses also showed that flu sufferers experienced a significant reduction in antibiotic use, the time taken to return to normal activities and the use of relief medications (such as analgesics and cough medicines).

New hope for cancer patients has emerged with the isolation and cloning of an enzyme that is responsible for the growth and spread of solid tumours. Scientists at the ANU's John Curtin School of Medical Research (JCSMR) have become one of two international research groups who have successfully cloned the enzyme, called `heparanase'.

This achievement is the result of a very successful interaction between the JCSMR, the University's business arm ANUTECH and Progen Industries Ltd, a Brisbane-based biotechnology company, that has funded the heparanase research at the ANU for the last five years. The collaboration has the potential to bring royalties worth millions of dollars to Australia in the future.

Cancer cells are able to escape and spread throughout the body by breaking down tissue barriers with the enzyme, heparanase. By understanding the role of heparanase, and being able to shut down its action, the cancer cell's ability to spread in the body is limited. Shutting down the enzyme also prevents the cancer from tapping into the local blood supply, thus starving the tumour.

Scientists have been attempting to isolate and clone this enzyme for the last 20 years. Heparanase proved difficult to isolate because of initial confusion about the nature of the enzyme, mainly due to the lack of a suitable means for rapidly testing the enzyme's activity. Beginning with human blood platelets, Professor Chris Parish's group from JCSMR developed a rapid test for heparanase, and used the test to help them clone the enzyme. They achieved this feat independently of an Israeli group, who also purified the enzyme from other human tissues. Both groups have announced their achievement in back-to-back papers in the July issue of Nature Medicine.

"This is a key advance that will provide a new target for anti-cancer drugs," Professor Parish said. "It is very encouraging for us that the ANU's discovery is being commercialised through an Australian biotechnology company Progen."

Professor Parish's group has already designed an anti-cancer drug called PI-88 that inhibits the action of heparanase. On behalf of the ANU, ANUTECH licensed the rights to the drug to Progen, and good results in animals led Progen to commence Phase I human clinical trials of PI-88 in healthy volunteers in the UK earlier this year. The drug was well tolerated by the treated subjects, and large scale production is under way at Progen's Brisbane plant.

ANUTECH has negotiated a new deal with Progen for ongoing research and development of PI-88 and `second generation' drugs using the knowledge gained through cloning heparanase. The latest deal involves $2 million dollars for new research over three years, which will be conducted at both the JCSMR and the ANU's Research School of Chemistry.

The US Food and Drug Administration (FDA) on 30 June 1999 approved PI-88 for clinical trials. Trials are planned to begin shortly in Australia, in patients with a range of solid tumours, including those found in breast, prostate, lung and colon tissues.

Progen Industries Limited (ASX Code: PGL; Nasdaq Code: PGLAF), recently received provisional approval from the Peter MacCallum Cancer Institute's Ethics Committee to commence testing its anti-cancer drug, PI-88, at the Institute under the umbrella of Centre for Developmental Cancer Therapeutics.

Progen Industries Limited Managing Director Mr Alan Scott said this was the second CDCT location in Melbourne at which the biotechnology company had received approval to hold the trial.

"In June this year, we received provisional approval from the Royal Melbourne Hospital's Ethics Committee to trial PI-88 at the Hospital under the CDCT," he said.

He said the trial would take place in Melbourne between the two locations and would involve approximately 40 patients whose tumours no longer responded to standard therapies. He said the CDCT was an important partner in the development of PI-88.

The CDCT is a consortium involving four major Melbourne hospitals and two internationally renowned oncology research centres. This network offers the facilities and expertise for conducting Phase 1 and Phase 11 clinical trials.

Mr Scott said PI-88 had the potential to treat a wide range of cancers including breast, lung, prostate and colon cancer.

"The incidence of cancer throughout the world is growing at an accelerated rate with Australia alone experiencing an increase of eight percent for men and 11 percent for women between 1985 and 1995," he said.

"Current data suggests that between one in three to four Australians will suffer from cancer during their lifetime." Mr Scott said the world cancer therapeutic market was estimated to be currently worth A$20 billion.

Progen is expected to announce its full year results shortly. As at August 25 1999, Progen's market capitalisation totalled A$87 million.

Researchers at the Victorian College of Pharmacy Monash University announced on 27 August groundbreaking drug delivery technology that is destined to become common both in Australia and internationally.

For many classes of drugs that are now taken either orally or with the aid of patches, the new technology presents a considerably more simple and cheaper alternative. This new technology enables the drug to be released into the bloodstream through the patients skin.

The technology will be of most benefit to people who experience difficulty or discomfort with oral drugs or patches, particularly young children and the elderly. It also has the potential to be used in the drug treatment for a wide range of conditions including hormone replacement therapy, pain relief, impotence problems, and anti-anxiety.

The technology was developed by Timothy Morgan, while he was a PhD student in the Department of Pharmaceutics at Monash's Victorian College of Pharmacy. Dr Morgan is now a project leader with Acrux LTD, a startup drug delivery company that has licensed the patented technology from Monash University, Acrux is seeking funds from Australian investors to commercialise the technology.

The chief executive officer of Acrux, Mr Ross Dobinson, said today's announcement of the new technology for drug delivery was proof that scientific breakthroughs could be developed to their full potential in Australia. "This is a perfect example of Australian university research, combining with Australian industry and investors to develop a product that will be of significant benefit to people on medication anywhere in the world."

Toronto - The firm of PricewaterhouseCoopers has been appointed receiver of insolvent Hyal Pharmaceutical Corp. after the company acknowledged it was unable to repay $750,000 of debt plus interest and costs, for which it has recently received a demand notice from SkyePharma plc. The move follows the filing of a petition by SkyePharma, a secured creditor of the corporation.

Hyal also said that SkyePharma has acquired Hyal's 12 percent subordinated debentures in principal amount of US$5,026,073 from the holders of such debentures and that it has acquired from Elliott Associates L.P. a secured note issued by Hyal in principal amount of C$200,000 together with all security granted by Hyal pursuant to that note.

On August 3, 1999, Hyal announced that it had entered into an agreement with Cangene Corp. for the acquisition by Cangene of all of the issued and outstanding shares of Hyal for $0.08 per share in cash on closing. In a brief press release (August 17), Cangene said that it would not be pursuing its offer to acquire the issued and outstanding shares of Hyal citing that certain of the conditions to the transaction cannot be satisfied.

(Reproduced from Canadian Biotech News, 13 August, 1999)

With genetic modification hitting the headlines and consumer concern escalating, many manufacturers are considering their options when it comes to ingredient suppliers. Protein Technologies International (PTI), manufacturers of Supro® soy protein, is the only company in Australia currently able to offer manufacturers a choice when it comes to non-genetically modified (non-GM) isolated soy protein.

According to David Moss, Area Director Oceania for PTI, as a result of consumer concerns regarding GM foods, more and more manufacturers are looking for alternative ingredients and an assurance which they can pass on to their consumers. "In response to this demand, we have been offering our customers a process known as Identity Preservation for over 18 months," said Mr Moss.

PTI's Identity Preservation process follows soy production from a certified non-GMO seed, planting, storing and processing, right through to the food manufacturer. Each element in the chain is documented and the system is independently audited and certified to ensure these exacting standards of handling are maintained.

"The system is similar to ISO-9000 certification and offers unparalleled levels of quality assurance," said Mr Moss. "We are extremely proud of our Identity Preservation process, developing the technology when other ingredient manufacturers said it couldn't be done. Our customers wanted an alternative and we sourced it for them," said Mr Moss.

PTI currently services a broad spectrum of companies within the food and beverage industry.

On 18 August national chartered accountancy firm, Ferrier Hodgson, was appointed as Administrator to the Brisbane-based biotechnology company, ForBio Limited.

ForBio, which was formerly listed on the ASX, has developed an international reputation for its `trail blazing' work in the agribiotech industry, particularly for its research and development of genetic mapping and genetic transformation of the world's $440 billion forest industry.

Mr Peter McCluskey, partner of Ferrier Hodgson, said that despite the company's current financial difficulties, ForBio had successfully built a substantial and valuable technology base through its own research and development work and via strategic alliances with leading multinationals such as Du Pont and Monsanto.

Mr McCluskey said the company's commercial focus had been directed to highly demanded, fast growing commercial forest species suitable for plantation operations in Southern Asia, Australia and New Zealand, Europe and North and South America.

"Obviously, there is an enormous amount of intellectual capital contained within ForBio via its patented technology and its scientific staff, and it will be our primary aim to ensure returns from this core asset will be maximised during the Administration process."

"At this preliminary stage we intend to explore the possibility of a restructure of the business, whilst at the same time packaging ForBio's patented technologies either as a whole or in parts, for sale."

Mr McCluskey said several interested parties had already mde approaches regarding various ForBio patents, and that Ferrier Hodgson would be contacting other identified potential, purchasers in the near future.

The management of Start-up Australia has been committed to early stage investment for over 5 years and recognises that a specialist fund is required to fill the gap of funding at theseed stage. This type of funding is critical to creating start-up companies and creating value from technological advances, particularly in the life sciences. Start-up Australia has joined forces with US based Research Corporation Technologies to create BioVentures Australia.

BioVentures Australia is a joint venture between Start-up Australia and Research Corporation Technologies. Start-up Australia will source deals, conduct due diligence, manage the investments and secure exits. RCT has initially allocated $10 million to this venture and will provide value-adding expertise in science, market analysis, patent strategy, drug development and international networking.

BioVentures Australia will work in partnership with researchers and research institutions to identify, appraise, protect, develop and commercialise inventions. In addition to providing project funding, BioVentures Australia will add value to a technology by providing project management, commercial development experience, patient strategy and legal support. Many projects will advance to the company start-up stage at which point BioVentures Australia will seek coinvestors. In some cases, the value of technology will be realised through licensing or sale to industry players.

BioVentures Australia brings together a major international player in technology commercialisation and a successful local venture fund manager. This provides an excellent opportunity for inventors and researchers to develop their technology and product further in Australia and ultimately maximise the value of their technology in the international market place.

RCT is a highly successful technology investor headquartered in Tucson, Arizona. It owns, or is an investor in, a large number of well known biotechnology and pharmaceutical technologies. During 1998, it had project revenues of US$76.2 million. RCT provides a combination of science, business and legal expertise to assess a technology's potential and the work needed to increase its value. The company has extensive international links with the large pharmaceutical companies to facilitate sale or licensing of the technology.

Technologies which have been commercialised by RCT include the following:

• Cisplatin and Carboplatin - these are two of the most widely prescribed cancer drugs.
• Prostate-Specific Antigen Test - this technology is routinely used in the detection and monitoring of prostate cancer.
• Technetium 99M Complexes - these radioisotopes are used for cardiac monitoring.
• Pichia Protein Expression System - this is a yeast production system that produces proteins at a high yield for use in drugs and food.

Further information: www.rctech.com

Biodiscovery Ltd's shareholdings have been the subject of scrutiny by an Australian Financial Review writer (Fri 13 August 1999; pages 59,92).

Biodiscovery Ltd is a small Sydney-based biotechnology company with two major projects - a diabetes vaccine being developed in conjunction with the John Curtin School of Medical Research in Canberra. The second is an agreement with Rhone-Poulenc to develop
products from CSIRO's insect library. It has a number of other strategic research partnerships with leading Australian research groups.

The AFR article attempted to untangle a complex buying spree from foreign investors which has occurred over the last 16 months with major share purchases from New Zealand, Guernsey Islands, Turkey, Hong Kong and the UK. This shift in ownership of the company has resulted in a change in the Board.

BIO SHARES

Covering Australian Biotechnology Stocks - compiled by M.J. Playne

Warning - This table is a guide only to stock movements. Persons should not use this information as the sole basis for business and financial decisions. Advice from financial advisors should be sought.

ISSUES

One of the most interesting things to come out of the genetic modified food (GMO) debate is the polarisation of the public. In the beginning there were a small number of anti-GMO interest groups pushing their view, often very actively, although with little apparent effect. On the other side were the scientists and industries, often quietly moving along (although there are exceptions) and developing the new technology. In between is the general public, often with interest in biotechnology, but with little access to information.

This has rapidly changed. Suddenly GMO's were in the headlines. Killer potatoes, Frankenstein foods, murdering pollen and the list goes on. Everyone is being experimented on by the big, irresponsible and possibly evil multinationals. Of the multinationals, one name is dragged through the mud regularly, although a second is also commonly mentioned. There is no need to write the names, you probably know them already. People wanted more information and journalists had something to write about that did not involve the royal family. Public debate on the subject began.

The Consensus Conference has been the most formal public debate so far. Although a valuable experience, the general public was not really allowed to participate. It did after all involve only 14 lay people. The results of the Conference has had some influence on the wider public, mainly introducing the topic through media, with the report from the lay panel being taken on board by both industry and government. At the same time, ground swell opposition in Europe was erupting. The anti-groups, politicians and industry saw an avenue to sway, educate and inform the public. Next thing, councils and interest groups were holding debates on the topic. The public was participating, or was it?

Generally, what happens at public debates is that one side has more to gain than the other. At present it is the anti-groups with more to gain, and they have had success although not all the time. One choice of location in Melbourne for holding a debate on GMO agriculture, organised by the Democrats, was very unfortunate for the anti-groups. It was close to LaTrobe University. Approximately two-thirds of the audience had a degree or higher education. Of these, at least half of had worked, or still did work, in the areas of biotechnology, agriculture or biochemistry. The two speakers, Dr Donald McPhee (LaTrobe University) and Bob Phelps (Director of GeneEthics) both produced interesting presentations. Dr McPhee presented unbiased information on risk assessment and toxins already present in "natural" foods. Dr McPhee's information had an interesting effect on the audience (people rarely know about the toxins they consume daily) and it was based on scientific fact.

Bob Phelps also presented well. After all, he has had a lot of experience at doing so. Rather then basing his presentation on fact, emotive issues were raised. The public's lack of knowledge on genetic engineering was used to fuel fear. The few facts that were used were presented in a biased manner. Although not wrong, this highlights the difference in the two sides of the debate. Unfortunately for Mr Phelps, a number of the audience was educated in the issues relating to biotechnology. The result would not have been pleasant for him, and for a few people in the audience it was quite pleasing.

Not long after this the Moreland council voted on banning GMO foods after a request from a preschool teacher. Again Bob Phelps presented information, although no one was present to discuss the other side of the story. There are suggestions that Mr Phelps is following a similar strategy with other councils, which is hardly allowing the public debate Mr Phelps says he desires. Statements that anti-groups have the support of 90% of the public are often used and this tends to sway people, and it is hard to prove them wrong.

Another public meeting organised by the Australian Labour party, held in a "green" electorate, was extremely interesting. The only speakers were Mr Scott Kinnear (Chairperson of the Organic Federation of Australia) and Mr Lindsay Tanner (Labor Federal Shadow Minister for Finance and Consumer Affairs). It became evident as the night progressed that the majority of the audience was not well informed in the issue. Although Mr Kinnear is not a supporter of agricultural biotechnology and his presentation was not overly negative, it was hardly balanced. Mr Kinnear's role is, after all, to improve the status and awareness of the organic movement. Mr Tanner was also pushing his political agenda on the labelling issue. While he does not appear to be anti-biotechnology, some of his remarks left a lot to be desired. However, the audience response was quite disturbing.

Comments suggesting all industry scientists, including industry-funded scientists, were corrupt and forced to follow the companies wishes were aired. Furthermore, according to one person all wheat grown and eaten today had been genetically modified. A strong anti-biotechnology feeling was evident, suppressing any desire from pro-biotechnology audience members to make positive comments. Experiences such as this are very insightful, showing how far the public still needs to go and how they need to be informed along the way. The media blitz has helped to some degree, but harmed the debate as well.

Television and newspapers are very powerful media. It is not unusual to have both pro- and anti- biotechnology stories on the same television station or in the same paper, however bad news always sells better then good news. That is possibly why television programs tend to mention negative poll results and feedback, while rarely covering the positive feedback. Maybe it is because pro-groups are complacent, the majority of Australians do not care and the few anti-biotechnology groups are vocal. But the damage to biotechnology only needs to be done by a few.

For example, the story on the ABC's "Foreign Correspondent" (3/8/99) was very effective at scaring the public. Add to that the reaction of one of the guests on Channel 10's high rating "The Panel" (4/8/99) to eating GMO food and you will understand. It was interesting though to watch Mara Bun (Australian Consumer Association) defend biotechnology to a degree, there are after all benefits to the consumer. However, the ACA has said it will actively campaign against biotechnology if the labelling regulations are not tight enough. Although the food labelling issue does not affect all segments of the biotechnology industry, the current reactions do taint anything that has been genetically modified. This is not good for any industry based on biotechnology. Luckily, the lack of public information and balanced debate can be rectified.

Everyone involved in biotechnology should attend local meetings. Even if you do not say anything in the question time, you may be able to approach individuals and explain biotechnology in a positive light. Feedback to incorrect newspaper articles should be encouraged. Although you may become tired of writing the same thing, if you do not speak, you cannot be expected to be heard. Anti-groups have no qualm about speaking out with claims that lack scientific credibility. Fear and ignorance are their greatest tools in achieving their agenda.

Groups such as GeneEthics that want to freeze all agricultural biotechnology claim support of the majority of Australians, however they consist mainly of a handful of employees and a volunteer workforce. It is likely that many of the small biotechnology companies in Australia employ more full time staff than that. When you add the biotechnology industry together, we would make a significant part of the community. Don't we have a say as well? Or are we part of the 90% that GeneEthics claim to represent.

There is no doubt that biotechnology has benefits to the community. Examples are easy to list, antibiotics, triple antigen, insulin, rennet for cheese, improved yeasts for brewing and the new wave of improved crops. Undoubtedly the greatest benefit of biotechnology crops at the moment is for the farmers with herbicide tolerant and insect resistant crops. Within our current society, life on the land is a struggle and biotechnology has the opportunity to improve the bottom line of farming, while decreasing pesticide and herbicide use, often the most costly part of a farmer's operation. The anti-groups oppose attempts in Europe to prove the benefit to farmers and the environment, while scaring the public by cultivating fear in the people they supposedly represent and care for.

Although at present are the skies dark, the future looks bright for biotechnology. Every new technology, especially when it is related to food, is opposed. Look at milk pasteurisation or the change of milk container from glass to cardboard and from cardboard to plastic. However they are simple changes when compared to the present one, so more work needs to be done. The general public needs to be educated in the science. This is best done in a relaxed atmosphere, often following debates and not necessarily during them. Do not try to over simplify the science, but explain it slowly. Be prepared to backtrack during this process, it is a complex issue. So please attend the local forums, write to newspapers and discuss with the public the issue of biotechnology, otherwise one section of the community, those involved in the science, will become mis-represented and left out of the debate.

Dear Editor

In her letter to the editor in the issue of April 1999 Sharon Kardol accuses the Australian Biotechnology Association of "complete lack of objectivity" in the information provided on its web site regarding genetically-modified plants and animals and their use in food. Unfortunately not only does Ms Kardol herself display intemperate language and an extraordinary lack of objectivity, she confuses problems with foodstuffs already on the market and in agriculture, which are entirely unrelated to genetic modification, with real and purported effects of genetic modification.

She refers to "horrific" side effects of using bovine growth hormone in dairy cows; although mastitis is very common in dairy herds, growth hormone is not used in Australia, so moreover, even where bovine growth hormone is used in dairy herds, as it is in the United States, this is exogenous growth hormone produced by fermentation in Escherichia coli transgenic cattle are not used in milk production. Not only is bovine growth hormone inactive in humans, it is broken down and inactivated by digestion in the gut, so the use of growth hormone in this way does not affect humans.

Ms Kardol refers to alleged links between aspartame and cancer. Aspartame is a dipeptide produced by chemical synthesis, and has nothing whatsoever to do with biotechnology or genetic engineering. Whether or not if there is an association between aspartame and cancer is another matter; perhaps she would like to provide some evidence of this.

As the author of the patent information sheet, I would like to point out that the so-called terminator gene and other such developments have absolutely nothing to do with whether or not patent protection is available. Patents provide an incentive to research, in that they offer one potential means for innovators to obtain financial return for their extremely large expenditure on research and development. Research of this kind will be done regardless of whether or not the results can be patented. The terminator genes were in fact developed in order to overcome the perceived problem of spread of genes into weed populations growing in the vicinity of transgenic crop plants.

Patent specifications are published eighteen months after their priority date; this process is not dependent on examination or any refereeing process and therefore patents are a major contributor to the spread of knowledge. If patenting is not possible, the research will still be carried on, and will still be commercially exploited, but the results will be kept secret. Would Ms Kardol prefer this?

The ability to identify genes for desirable traits such as drought or insect resistance and to transfer them into other species means an increase in genetic diversity. The development of strains with desirable characteristics has been an object of agriculture since time inmemorial; modern biotechnology merely makes this process much quicker and much more precise. Moreover, if a plant has the ability to produce its own insecticide, such as Bacillus thuringiensis crystal protein, this means that only insects which attack that plant will be affected. Surely this is far better than aerial spraying of insecticide over a wide acreage. Bacillus thuringiensis crystal protein is extremely safe, and is widely used by organic farmers; however, they also use spraying, and so many beneficial insects are killed by this process.

Hybrid seed is extremely widely used in agriculture; however, this has been so since long before the dawn of modern biotechnology, and there is absolutely no evidence of the ill effects asserted by Ms Kardol.

It is certainly true that modern intensive agriculture presents many problems, including those of loss of diversity, monoculture, and the dominance of a relevant small number of multi-national corporations. However, these trends were evident long before modern biotechnology, and are evident in areas of agriculture in which biotechnology has had no impact. Many of these trends are part of the glo-balisation of the economy at large, and have more to do with economy of scale than with technology per se.

Perhaps instead of inveighing against biotechnology and wishing a painful death on scientists who are doing their utmost to minimise use of harmful chemicals and to preserve biodiversity and the environment, Ms Kardol should herself attempt some objectivity and consult some impartial sources of information, such as the CSRO Division of Plant Industry, the Australian Farmers Federation, or the International Food Information Council (http://ificinfo.health.org).

There is a lot of hysterical misinformation about biotechnology purveyed by organisations which have their own axes to grind. Picking way through this is an exercise in clear thinking, as well as requiring an appreciation of the underlying scientific facts. Ms Kardol has given us a salutary illustration of the effects of this misinformation.

Dr Vivien Santer, Griffith Hack

Herbal Medicine into the New Millennium

Dr G David Lin, email: dlin@scu.edu.au School of Natural and Complementary Medicine, Southern Cross University, PO Box 157, Lismore, NSW 2480

The "Herbal Medicine into the New Millennium" - an international forum on the science, regulation, production and clinical application of medicinal plants - was successfully hosted by the Southern Cross University (SCU) in Lismore from 16 to 18 June, 1999. Twenty-seven national and international speakers including Her Royal Highness Princess Chulabhoh Mathidol (Thailand), Professor Varro Tyler (USA), Professor Robert Henry (Centre for Plant Conservation Genetics, SCU) and Professor Peter Waterman (Centre for Phytochemistry, SCU), presented 27 plenary lectures to around 300 participants in the following nine sessions related to herbal medicine:

1. Creating the Vision,

2. Recognising the Challenges,

3. Science at the Cutting Edge,

4. Treating the people,

5. Reaping the Benefits,

6. Respecting the Tradition,

7. Creating Safer Choices,

8. Towards Balanced Regulation,

9. Herbal Medicine - the Next Step.

From a biotechnologist's perspective on this conference I, as an "ambassador" to overseas speakers and an audience in the conference, wish to share some highlights with you.

On 17 June, Senator Grant Tambling, Parliamentary Secretary to the Federal Minister for the Health and Aged Care, officially launched the Cellulose Valley Technology Park business plan. Cellulose Valley is Australia's first herbal medicine region stretching from Tweed Head to Taree. Its headquarters is located on a 73 ha site adjacent to the Southern Cross University in Lismore and is the world's first natural products technology park. The park will cater for research and commercial development of quality-assured natural plant products, particularly for therapeutic applications. Biotechnology is an essential practice in the development of quality plants and crops for the cultivation in the Cellulose Valley region. Biotechnology also plays an important role in the processing of raw plant and crop materials to finish products in the Technology Park.

Herbs such as Echinacea and Gingko have been cultivated in the Northern Rivers region. Mr Howard Rubin, President, Organic Herb Growers of Australia Inc. in Lismore told the delegates that his growers association has a national membership of 580 with 350 certified organic farms, representing an area of 1000 hectare of production.

Professor Peter Waterman, who recently moved from the Strathclyde Institute for Drug Research, University of Strathclyde in Scotland to chair the Centre for Phytochemistry at Southern Cross University, delivered a keynote paper on "Improving the Quality of Herbal Medicine - Some Possible Ways Forward". He proposed some realistic ways that include:

• Be sure what the material is, through botanical, chemical and biotechnological means
• Be sure that the level of toxicity is acceptable, through the establishment of simple toxicity tests
• Develop methods to characterise biological activities, through bioassay and/or chemical profiling such as LC-NMR technology employed at the Centre for Phytochemistry, the first of such kind in Australia.

Sustainable development of plant resources is adequately covered in the conference. Her Royal Highness Princess Chulabhoh Mathidol, Professor of Organic Chemistry at Bangkok's Mathidol University, delivered a lecture on "Chemical and Biological Diversity of Natural products" with a particular focus on anticancer agents from plants. Dr Ameenah Gurib-Fakim from University of Mauritius talked about the utilisation and conservation of medicinal plants in Mauritius. Professor Bill Aalbersberg from University of the South pacific, Fiji proposed "Community-based Bioprospecting as a Tool for Conversation". He argued that "Bioprospecting must be tied to biodiversity conservation and develop source country capacity to be a substantial partner in natural product development". He also commended "the Cellulose Valley initiative of the Southern Cross University seems headed on this path" in convening this Congress and choosing Professor Peter Waterman to manage this initiative."

Professor Robert Henry, from Centre for Plant Conservation Genetics, presented a science at the cutting edge - Molecular Genetic Approaches to the Development of Improved Products from Medicinal Plants. This includes:

• Quality control by analysis of plant DNA
• Discovery of new medicinal plants by analysis of plant relationship
• Molecular analysis to manage the production of active ingredients in medicinal plants of optimal levels
• Breeding better medicinal plants
• Genetic engineering of medicinal plants

These are illustrated in an example of tea tree (Melaleuca alternifolia) investigated in the Southern Cross University using molecular markers to study genotypic characteristics of wild population of species, and the molecular analysis of tea tree oil biosynthesis pathways to "clone" high terpinen-4-ol producing tea trees in the future.

Finally, Varro Tyler (Pictured), Distinguished Professor Emeritus of Pharmacognosy at Purdue University, proposed the challenges that need to be recognised before herbal medicine is integrated into the mainstream. These include the need for clinical trials, standardisation of herbs, determination of phyto-equivalences and the importance of bioavailability. Surprisingly, he told me that there was current shortage of pharmacognosists in the USA, and often molecular biologists were recruited to fill the position of pharmacognosists in the Pharmacy Departments. Not surprising then, his new edition of pharmacognosy textbook is called "Pharmacognosy and Pharmacobiotechnology". In this context,pharmacobiotechnology involves the production of natural product drugs by application of modern biotechnology and represents "the newest frontier in providing innovative approaches in drug discovery and patient treatment".

For more information, please consult the conference proceedings, which are available from: nsearch@scu.edu.au mailto:nsearch@scu.edu.au

New Thinking in Biotech Forums organised by the De Bono Institute were held in:

Sydney - Friday 28th May 1999
Brisbane - Tuesday 1st June 1999
Melbourne - Monday 7 June 1999

Their Executive Summary of the findings follows :

The `Biotech New Thinking Forums' are the first in a trilogy of `New Thinking Forums' hosted by the de Bono Institute, focusing on separate emerging high growth industries. Attended by a total of 298 biotechnology industry stakeholders and interested parties, the three forums collectively generated 1725 comments, ideas and concepts, captured using the de Bono `Six Thinking Hats' process.

Although characterised by a wide diversity of opinion, common themes (all interlinked) were generated, that are consistent to all three forums. In no order of priority they are:

Markets and industries are efficient when they achieve broad consumer and stakeholder confidence. In this case, industry confidence is affected by a number of dynamic influences, such as regulatory environment; inhibitive tax regime; inadequate technical and professional skills; access to markets and capital; patient capital investments; government role and influence on the industry; and uncertainty associated with any emerging industry. As with all the themes, the uncertainty and immaturity of the market is reflected by the diverse and often polarised opinions expressed.

Fear of the unknown and scientists' collective ability to `tamper' with natural processes, clearly intrudes on the community's perception and understanding of what is right or acceptable. This culture is driven by social, religious and community standards, habits and expectations. The perception appears to be that these concerns are best addressed by clearly defined ethical parameters, as well as checks and balances imposed on the industry.

One of the few themes where there appears to be common agreement, in the need for industry collaboration and transparency with the broader community. Variations of awareness, education and marketing campaigns designed to create a more informed and less fearful (concerned) consumer were mooted. There is a need for the industry, in a cohesive and coordinated manner, to continually focus on the benefits and not the features of various projects and ventures. Particularly when promoting to the investment community, so issues of risk and reward can be better understood and calibrated.

There appears to be a general acknowledgment that the Biotech industry will require significant sourcing of resources in order for the industry to grow. Comments were primarily focussed on funding and the lack or excess thereof. Opinions were divided as whether this was the responsibility of the government or private sector. Clearly, a perceived lack of linkages with the investment community necessitates the development of a support infrastructure of appropriately skilled professionals to enable the commercialisation process.

As no industry vision was identified, it can be interpreted that the industry lacks direction and leadership. This is reflected in comments that the industry is agenda and technology driven, rather than market driven. There is unanimous agreement that the industry may be local, but markets are global, and the industry has to cater accordingly. Although the Forum participants had a vested interest, the tone and thrust of comments demonstrated the strong belief that Australia could not afford not to participate in the emerging Biotechnology industry. In fact some believe that Australia has an opportunity to be a leader, and not a follower.
Source: The DeBono Institute

Canberra Region

The last meeting of the Canberra region group was held on 28 July in conjunction with the Licensing Executives Society (Australia New Zealand). Over 45 people attended to hear Dr David Irving, of Biotech Australia Pty Ltd speak about lessons from commercialising biotechnology in Australia.

Dr Irving briefly described development and introduction of Biotech Australia's products Neogard and TickGARD and then reviewed in more detail the development of PAI-2, which is a naturally occurring molecule, which inhibits protease activity in tissues. PAI-2 is currently in clinical trials for topical application to treat leg ulcers and psoriasis.

From Dr Irving's perspective, the major lessons centre on the interaction between companies and academic researchers. It is essential for research projects to be brought into contact with industry early in their development and for academics and industry scientists to learn to respect each others' expertise. Industry scientists have skills in scale-up and process development that are complementary to those of institutional researchers. It is also useful to maintain contact with the originating researcher, even if he or she moves between institutions.

The role of Biotech Australia in developing an Australian biotech industry is to add as much value as possible to locally funded R&D so it is not sold offshore cheaply. Dr Irving noted that while government support for R&D was useful, there was still an absence of support for the long commercialisation and scale-up process.

A further meeting on 23 August was attended by 23 people including researchers from ANU's John Curtin School of Medical Research. We heard from Dr Gerardo Guillen of the Centre for Biotechnology in Cuba. Dr Guillen spoke of his research into vaccine development, some of which has been succesfully licensed into multi-national corporations. There is no ACT meeting in September due to the AGM and a formal Canberra Branch is to be established in October. This will then co-ordinate future Canberrra meetings.
Lyndal Thorburn, Branch Chairman

Directory and Database Released

Hallmark Editions, the publisher of R&D Review, has released the third edition of The Australian Research and Development Directory.

The Directory is a valuable reference to research and development policy at Federal and State levels, providing details of funding programs, research agencies and science policy advisory bodies. It also provides the most comprehensive guide to public sector research organisation, including university research centres, Cooperative Research Centres, Major National Research Facilities, collaborative research organisations and independent research institutes.

Fields of research covered include medical science and technology, biological sciences and technology, agriculture and rural-based manufacturing, environment and telecommunications technology, manufacturing technology, mining and energy, engineering and applied physical sciences, pure science and mathematics, and road and transport research.

Other listings include non-government funding agencies, societies and associations, sources of equity and development capital and technology parks.

Hallmark Editions has also made the details of over 850 research centres available on disk as a database. The Directory can be purchased for $95, including postage and handling.

Further information about the Directory or the Database, contact Hallmark Editions on Tel: (03) 9555 7377

The California Bio-Science Guide covers bio-science in all of California, from San Francisco to San Diego. The directory includes pharmaceutical firms, bio-medical manufacturers, research and development and medical device manufacturers. Over 890 companies are listed and each listing has the name of the firm, address, phone number, fax, email address, web page address, number of employees, product code, year established, description of the companies product or service and contact names at the firm. The directory is available for $US199.00 from Rich's, 3980 Fabian Way, Palo Alto, California 94303-4605 USA; Fax: +1 650 493 7525.

edited by Jeffrey B. Harborne FRS, Herbert Baxter and Gerard P. Moss

The purpose of this dictionary is to provide basic information, including structural formulae, on the most widely encountered plant constituents, with emphasis on those which are biologically active. It will be an essential source of reference for those working in the field of plant science, and will be of specific interest to phytochemists, food chemists, flavour and perfumery chemists, agricultural and horticultural chemists, pharmacologists, pharmacognostics and plant biologists.

Available from Hemisphere Publication Services, 3/303 Barrenjoey Road, Newport NSW 2106; Tel: 02 9999 2777; Fax: 02 9999 3688; email: info@hemisphere. com.au

MEETINGS

Membrane Technology in Food and Bioprocessing

1-2 October 1999

University of Western Sydney, Hawkesbury Richmond, NSW

Contact: Jenny Carney Tel: 02 4570 1455; Fax: 02 4578 4100; Email: J.Carney@UWS.edu.au

3-8 October 1999

Sydney, Australia

Further information: Tel: 61 2 9241 1478; www.aifst.asn.au

4-8 October 1999

Wuhan, P.R. China

Contact: Dr Sun Ming, Huazhong Agricultural University, Dept Microbial Science & Technology, Wuhan, 430070, Hubei, P.R. China Fax: 86 27 8739 3882; Email: YZ41@public.wh.hb.cn

5-6 October, 1999

Melbourne Convention Centre

Contact: Secretariat Tel: 03 9521 8881; Fax: 03 9521 8889; email: conforg@ozemail.com.au Website: www.ahi.com.au/chif

5-7 October 1999

Hannover, Germany

Contact: Oliver Wedeking Tel: 0511 89 32128; Fax: 0511 89 31218

10-15 October 1999

Kona Surf Resort, Kona, Hawaii

Contact: United Engineering Foundation, Three Park Avenue, New York, NY 10016-5902 Tel: 1 212 591 7836; Fax: 1 212 591 7441; Email: engfind@aol.com

14-15 October 1999

Australian Technology Park, Redfern, NSW

Contact: Myriad Conference Managerment, Tel: 08 8387 3877; Fax: 08 8322 6290; email: myriad@myriad.com.au

18-19 October 1999

Queen Elizabeth II Conference Centre, London, England

Contact: Tel: 831 464 7100; Fax: 831 464 4240; Email: biopartnering@techvis ion.com

25-26 October 1999

Hyde Park Plaza, Sydney

Contact: International Quality & Productivity Centre, Tel: 02 9223 2600; Fax: 02 9223 2622; email: registration@iqpc.com.au< /I>