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The AgBiotech Bulletin Volume 2 Issue 1  January/February 1994
Published by AG-WEST BIOTECH INC.

Code: NL94005
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Workshop on Regulatory Agbiotech

In early 1993, the federal government adopted principals for a
regulatory framework to be applied to Canadian agbiotech
products. (See Agbiotech Bulletin Volume 1 Issue 1 through 4). 
In November three federal departments, Agriculture, Environment
and Health brought together a range of participants to review the
regulatory issues and raise specific concerns.  Two hundred
representatives from consumer, producer, industry, regulatory and
environmental organizations from across Canada attended the
workshop.  A contingent of American observers were also present
during the workshop.  Ag-West Biotech president Dr. Murray
McLaughlin was optimistic about the event.  "There was good
indication that we're moving in the right direction.  Its ten
years since regulatory changes were first identified as a major
priority for the agbiotech community and in the last 24 months
we've seen progress. We urgently need appropriate regulations in
order to compete on a global scale."

The discussion categories covered genetically modified plants,
feeds and veterinary biologics, food safety (novel foods) and the
development of a risk-based model.

Genetically Modified Plants

Larry Erickson of the University of Guelph reported that
participants in his discussion group agreed that fresh guidelines
for new plants will be required. The current guidelines for
confined field trials were approved by the participants.  However
there was considerable discussion about the release of
genetically modified plants (gmp's) in unconfined trials.  The
guidelines recommended by Ag Canada and Environment Canada will
be reviewed and the recommendations of the participants will be
taken into consideration.

An urgent priority for the two departments is to produce a draft
document that will allow trials during the upcoming working
season. 

A range of other issues including enhanced flexibility in site
locations and simplification of the application and ensuing
availability of appropriate criteria and data process were also
discussed.

Reporting to the plenary session, Bill Atkinson of Biostar Inc.
said that the recommendation for veterinary biologics provided
a particularly good working document.  The recommendations are
an extension of guidelines which have already worked well for
conventional products.

Participants felt that the regulations were sufficiently flexible
to allow the safe and timely development of new products.  His
group asked for only minor revisions to the package.

Food Safety

The Department of Health and Welfare was an active collaborator
in the sessions and brought forward recommended food safety
guidelines for review.

In addressing the plenary session Phyllis Tanaka of the
University of Toronto said that while her group agreed that there
had been positive action, more time would be required to explore
a number of issues in detail.  Of key concern were:

* the definition of terms such as novel foods, and substantial
equivalent;
* the issue of Canada/US harmonization and the possibility of
illegal imports into Canada if harmonization is not achieved;
* labeling should be required for safety, other labeling issues
were not settled;
* liability should remain with the industry.

Risk Based Model

Canadian Animal Health Institute representative Jean Szkotnicki
reported to the plenary session that her discussion group agreed
the expert commodity committees should be asked to make
recommendations on risk criteria and assess ongoing issues such
as regulatory review criteria, value and international
regulations.

The risk model prepared by government was generally agreed to be
a reasonable approach although participants encouraged the
clarification of the terms "familiarity", "substantial
equivalence" and "value and risk assessment" and the
establishment of appropriate bodies of knowledge and processes
to support the risk based model.

Industry Perspectives

Dr. Murray McLaughlin summarized four concerns which had been
identified by industry.

* the approach to determining risk must be science-based
* existing approaches should be used to facilitate the timely
implementation of new regulations
* regulations must be finalized quickly
* existing Expert Committees should be allowed to offer
assistance in the regulatory process

Research Perspectives

Dr. Wilf Keller of the NRC-Plant Biotechnology Institute said
that biotechnology must be appropriately positioned through
public education.  In addition he noted that:
* regulations have proven themselves with confined testing of
gmp's and it is time to move toward unconfined release
* regulations should be based on product not process once a
knowledge base is established
* guideline flexibility is important

Commenting on the event, Jean Hollebone of the Biotechnology
Strategies Office of Ag Canada, stressed that the new approach
to biotechnology regulations was an important breakthrough.  "For
the first time we have drawn together three government
departments responsible for regulation of agriculture research
and laid out all the steps necessary for evaluating a product and
bringing it to the consumer." she said.  "The pathway is now
clear and on the table.  Now we can handle any product on a case
by case basis.  Even six months ago we wouldn't have been able
to achieve that goal."  She recognized that the areas of
jurisdiction between Agriculture Canada and Environment Canada
will need to be clarified but is confident that the issue will
be settled shortly for the mutual benefit of consumers, producers
and industry.

Hollebone said that three additional consultations will be held
in early 1994.  One will be at the International Roundtable on
Animal Feed Biotechnology-Probiotics, another at the Microbial
Pesticide and Fertilizer Workshop and a third in Saskatoon under
the auspices of Ag Canada, Health and Welfare and Ag-West
Biotech.

                               Š


Biostar Raises $10.9M

Biostar Inc., a Saskatchewan company which specializes in the
development of animal and human vaccines, has raised $10.9
million in equity.  The funds were assembled through a syndicate
led by MDS Health Ventures of Toronto.

The investment will be used to establish an advanced product and
manufacturing facility in Saskatoon and to finance new product
development.  Once the plant is in operation in 1994, Biostar
will be able to produce genetically engineered health products
and components for global markets. 

The company markets three vaccines through its wholly owned
subsidiary Biowest Inc.  The new plant will allow the company to
double its production levels.  Current sales are valued at
$500,000.  Steve Acres, Biostar president, anticipates that
within the next five to six years sales will reach $20 million.

Dr. Murray McLaughlin said that the equity investment in Biostar
was an affirmation of the strength of the Saskatoon agbiotech
community.  "Biostar received the first funding assistance ever
provided by Ag-West.  Our investment of just over $800,000 in
1989 has helped facilitate a major Canadian venture.  The Ag-West
board is extremely gratified by the performance of Biostar in a
highly competitive market."  It is Ag-West's role to fill the gap
between the research phase of development and commercialization.

The recent $10.9 million investment comes from MDS Health
Ventures, Health Care and Biotechnology Venture Fund, the
Saskatchewan Government Growth Fund, the International Centre for
Agriculture Science and Technology (ICAST), Working Ventures
Canadian Fund, Vencap Equities Alberta, Federal Business
Development Bank (FBDB) and CIC Industrial Interests.
For further information contact Steve Acres (306) 966-7473.

                               Š


Drug Research Institute Launched

The Saskatchewan Drug Research Institute was officially launched
on November 30th.  The institute's primary role is to establish
an active liaison between Saskatchewan drug researchers and the
pharmaceutical industry.  It provides a control source for a
range of expertise in one convenient location.

Based at the University of Saskatchewan the Drug Research
Institute has access to an outstanding body of scientific
expertise and a superior technological infrastructure.  The
university has been the catalyst for a number of agbiotech
related organizations including Biostar Inc. which produces
biological products for human and animal health.

The institute will act as a clearing house for a network of
scientists, technologists, corporations, family physicians who
will collaborate on clinic trials and research.  It will also
provide access to the most comprehensive health care database in
the world.

Dr. Gordon Johnson, director of the Institute is committed to
offering a full range of research services. "We are active in
human clinical trials, veterinary clinical trials, basic science
drug research, technology research, natural products research,
pharmacoepidemiology and pharmaco-economics."

The institute has been established with founding donations from
Bristol-Myers Squibb Canada Inc., Ciba-Geigy Canada Ltd., Janssen
Pharmaceutica Inc., Parke-Davis, Merck-Frosst Canada Inc., Purdue
Frederick Inc., Sandoz Canada Inc., and Searle Canada Inc.

Johnson said that his team is very interested in working with
agbiotech organizations who are developing genetically engineered
drug products.  "This is the area of most rapid growth in
pharmacology.  We are in the process of contracting companies who
are active in this area.  We are very excited about the potential
for future collaboration."

                               Š


Sask Ag Strategy

Saskatchewan Agriculture has released its strategic framework
document titled Agriculture 2000.  The key to the approach is
strategic partnerships whose purpose will be to develop a strong,
sustainable ag and food industry.  The document was developed
following consultation across the ag and agri-food sector. It
identifies three primary tactical areas:  the farm,
diversification and institution development.  The following six
strategies in particular will influence agbiotech activity in the
province.

* Focus research and extension services to increase farm
productivity in line with changing market requirements.

* Promote the implementation of environmentally sustainable
agricultural principles and practices.

* Enhance the development and use of Saskatchewan farm
technology.

* Capture opportunities for maximizing the production of new
agricultural commodities.

* Create opportunities for industrial uses of primary products.

* Develop and expand community-based industries where we have
opportunities to add value to our products.

Use agricultural research institutions to increase farm income
and enhance industries producing value added products.

* Develop institutional relationships that foster production and
marketing of traditional and non-traditional agriculture
products.

Dale Sigurdson is assistant deputy minister of Saskatchewan
Agriculture and Agri-Food.  He also sits on the board of
directors of Ag-West Biotech Inc.  He emphasizes that, as a guide
to developing policy and programs, the Agriculture 2000
represents "more than a subtle change in direction." The major
themes for the future of agriculture are diversification,
economic viability and competition.

The internal objective in the new policy calls for
diversification of agriculture and added value. Sigurdson
recognizes that agbiotech plays an important role in achieving
this objective.

"Agricultural biotechnology gives us the opportunity to drive
production forward through the use of sustainable technology and,
more importantly, to create new uses for agricultural
commodities," he says. This ensures that the development of
agbiotech is a key feature of the provincial government agenda. 
He feels that, as a "pathfinder" agency for agbiotech, Ag-West
has given Saskatchewan a strengthened advantage in this area of
agricultural development.

                               Š


New DNA Tracking

The development of new biotechnology products could be
accelerated by a new method of detecting specific sequences of
bacterial DNA in soil and water samples.  The breakthrough
technique enables a single strain of bacteria to be distinguished
from closely related strains in a matter of hours.

The technique was developed by Dr. Cam Wyndham of Carleton
University and Dr. Roger Wheatcroft of Ag Canada to facilitate
field trials. Funding came from the federal government's NSERC
program.

This breakthrough technology allows scientists to detect
naturally occuring bacteria without having to "tag" their sample
bacteria with foreign DNA.  Since the previous method of
"tagging" genetically modified the organisms which were being
investigated, regulatory approval was required before they were
released into the environment.

The new method tailors the polymerase chain reaction so it will
only copy a mobile genetic element (jumping gene) found in a
unique position on the chromosomes.

For details contact Cam Wyndham at (613) 788-2600 Ext. 3651

                               Š


Chicago Bylaw Repealed

The Chicago ordinance which required special signage on
genetically modified foods has been repealed by city council.

A coalition of producers and suppliers worked with
representatives of the city to negotiate the repeal of the bylaw.

Once industry representatives were able to present the true facts
about transgenic foods and the safety of these products, the city
council was able to make a full assessment of the situation.  In
the process of information exchange, it became apparent that the
bylaw was inappropriate and indeed unnecessary.  Chicago city
council must be commended for its willingness to respond to this
issue.

We are again reminded that public education and transparency in
the regulatory system are critical to the orderly development of
biotechnology.

                               Š


Biosafety

The United Nations Industrial Development Organization (UNIDO)
has developed a network to address the need for standardized
regulatory procedures for the release of genetically engineered
organisms into the environment.

The program, known as the Biosafety Information Network and
Advisory Services (BINAS) will help nations access the works of
biotech applications.  It will develop a database covering
existing guidelines, regulations and standards.

* provide information on regulatory authorities and recognized
exports.
* provide a gateway to other databases
* offer resources to stakeholders interested in biosafety
* promote information resource outlets at the national and
regional level
* link expertise for other organizations

                               Š


BST Update

The United States Food and Drug Administration has approved
Bovine Somatotropin (BST) for commercial use.  The approval
represents a major advance for agbiotechnology based animal drug
products.

The BST product manufactured by Monsanto, under the name
Somatribove, increases milk production by supplementing a cows
natural BST, a hormone produced by the pituitary gland.  It will
be marketed under the name "Posilac".

The new product is one of the most extensively tested animal drug
products ever reviewed.  It has experienced a controversial start
in Canada, the US and within the European Common Market.

The FDA has ruled that the drug poses no threat to human health.
In announcing approval of Somatribove, FDA commissioner Dr. David
Kessler said "There is virtually no difference in milk from
treated and untreated cows.  In fact, it's not possible using
current scientific techniques to tell them apart.  We have looked
carefully at every single question raised, and we are confident
this product is safe for consumers, for cows and for the
environment."

The FDA also determined that the drug does not require special
labeling.  It also declined to apply a "fourth criteria" which
would evaluate economic impact on the current marketplace as a
condition of approval.

Clinical trials showed a slightly increased incidence of mastitis
in cows receiving BST, and there was some concern that
antibacteria treatment for the problem might lead to unsafe
residues in the milk supply.  The FDA concluded that adequate
safeguards were in place to prevent residue problems.

Three other companies have applications pending in the US for
BST; American Cyanamid, Eli Lilly and Upjohn.  During the review
process BST has received support from numerous organizations
including American Medical Association and the American Dietetic
Association.

Dr. Bob McManus with Provel, Division Eli Lilly Canada Inc. is
pleased with the US ruling.  "In Canada we see the decision as
a statement that good science will prevail over politics.  It
demonstrates support for the concept that science will determine
product safety not ill-informed interest groups."

McManus anticipates that Canadian rulings on the BST products now
under review will be completed within the next six months.

BST is being sold in Mexico, India, Eastern Block Countries and
South America.  Monsanto and Eli Lilly are the only companies
which currently have BST products available in the world market.
Although Monsanto can market BST in the US it cannot begin BST
sales until a temporary moratorium is lifted in February of 1994.

The European Commission has not yet decided how it will proceed
with BST.

                               Š


ENVIRONMENT

Strong Market for Bioremediation

A study carried out by Business Communications Company indicates
that bioremediation waste treatment markets in the US will reach
1.4 million by the end of 1998.

The study found that the US market for proprietary microbial
cultures which was valued at $39 million in 92 will grow at a
rate of 17% a year to reach $100 million by 1998.


Microbes for Oil Spills

Scientists of the Russian Institute of Geology and Scientific
Research on Oil and Gas have identified a test on non-pathogen
bacteria which digests oil.

The bacteria known as "Putidoil" was used on a spill in 1992. 
Over a period of 8 days fifty percent of the oil was processed
by the bacteria.  Only proteins and carbon dioxide were left from
the digested oil.


Microbial Land Clean-Up

Saskatchewan Forest Products Corporation (SFPC) plans to clean
up 55,000 cubic metres of contaminated land with microbial
treatment.  The site is owned by SFPC and is located in the
centre of Prince Albert, Saskatchewan.

The federal and provincial governments will provide $1.6 million
dollars toward the technology implementation.

The soil will be treated in a bioreactor and then deposited in
an open pit similar to a sewage lagoon.


Microbial Treatment for Paper Effluent

Researchers have identified three key species of bacteria which
break down simple chlorinated organic compounds and reduce the
overall levels of chlorinated organisms in pulp and paper
effluent. Researchers in the Pulp and Paper Centre in the
University of Toronto Department of Chemical Engineering and
Applied Chemistry isolated the microbes in pulp mill treatment
systems.

The identification of these bacteria represents a first step
toward developing more effective biological treatment systems and
improving the quality of pulp and paper effluent.

"The discovery has great potential impact," said Professor Grant
Allen, who led the research project.  "In the first place, we can
now show that actual degradation takes place, that the
chlorinated compounds don't just go from the water into the air. 
Second, we can possibly enhance the process and increase the
removal of chlorine-based compounds.  For example, we could add
nutrients that the bacteria like to feed on."

For more information contact Professor Grant Allen at (416)
967-8517.

                               Š


ISSUES IN EDUCATION

Saskatchewan Science Centre

Our Daily Bread is a new permanent exhibit at Regina's
Saskatchewan Science Centre.  It offers some hands-on awareness
of the extent and complexity of our agricultural industry. 
Exploring grain from seeds to food products, visitors gain an
intimate understanding of the nature of Saskatchewan's grain
crops.  They learn to identify grains, predict a crop's needs,
and discover how and why grain quality makes Saskatchewan an
important agricultural power.  And most appealing, visitors can
see and taste grain transformed into fragrant bread right before
their eyes.

The exhibit is sponsored by the Saskatchewan Wheat Pool.


Report Urges More Science

A recent report by the Canadian Labor Market and Productivity
Centre calls for a major revision to school curricula which would
turn around Canada's lackluster science and technology
performance in the education system.

The report recommended that all students be required to take
science and math subjects throughout their years in high school. 
It also calls for all teachers to be required to take science and
math throughout their elementary and high school education.

The educators, business people and union representatives who
prepared the report emphasized that Canada's future prosperity
is tied to the ability to develop new forms of technology.


IAEP Shows Cdn Performance

In 1991 students in 20 countries were tested through the
International Assessment of Educational Progress (IAEP). Canadian
students outscored the international average on Mathematics (62%
compared to 58%) and Science (69% compared to 67%).  Saskatchewan
students met the national average in math and exceeded the
national average in Science.


Connaught Laboratories Introduces Students to Biotechnology

Connaught's new educational resource helps Grade 7 & 8 teachers
introduce the sciences of biotechnology and immunology. It is
hoped that early exposure to these fields may encourage more
students to take science courses in high school and beyond.  This
would ensure that, in future, companies will be able to find more
people who are well educated in the biological sciences.


Biotech Info Bank

The US Department of Education has dedicated $2.5M to four
universities who will develop a resource bank of biotechnology
information over the next three years.  The information will be
organized in a format similar to a model currently used by the
health care sector.

It is hoped that a well developed information base will enhance
knowledge exchange.

                               Š


SOURCES

Seed Oil Issues

A new publication which overviews key issues in seed oil
composition and modification titled Seed Oils for the Future is
available from AOCS Press.

The book contains selected papers delivered during a symposium
on oil seed modification held during the 1992 AOCS Annual Meeting
in Toronto.

Editors S.L. MacKenzie and D.C. Taylor have chosen topics which
explore the factors that drive demand, techniques for modifying
oil composition, biochemistry of seed oils and the role of the
plant breeder.

The book is available for a fee by calling 1-800-336-AOCS in
Canada and the U.S. or phoning (217) 359-2344.


HK-Can Business Association

The Hong-Kong-Canada Business Association is open to members from
all sectors.  Its purpose is to develop closer business
relationships between Canada and the Asia Pacific.

The association's goals are to
* encourage trade and investment with Hong Kong and the Asia
Pacific
* raise awareness of Hong-Kongs potential as a strategic
communication to AP
* enhance co-operation in public and private sectors

For further details contact Julie Ng by fax (306) 359-8282


EC and US Regulations Compared

The Senior Advisory Group Biotechnology (SAGB) has a new report
available which compares the American and European Community
regulatory system for recombinant DNA operations.  The
publication was co-authored by Dr. D. Bauer of Hoechst AC and H.
Schumberger of Bayer AC.  They report that the U.S. has a
"workable and flexible review system" which is "pragmatic,
scientifically appropriate and thus highly competitive."  In
contrast they found the EC system to be restrictive and lacking
in the flexibility necessary for competitive development.

A copy of the report is available through SAGB, Ave E. Van
Nieuvenhuyse 4, Site 1, B1160 Brussels Belgium 


Biotech Safety Report

The Organization for Economic Co-operation and Development has
released a report titled Safety Evaluation of Foods Derived by
Modern Biotechnology: Concepts and Principals.

Order from:  OECD, Biotechnology Unit, Science & Technology
Policy Div., 2 rue Andre Pascol, 75775 Paris  CEDEX 16


Code of Conduct

The United Nations has published a Code of Conduct for the
Release of Genetically Modified Organisms into the Environment.

For a copy contact:  United Nations, Department of Public
Information, Room S - 1040 United Nations, New York, NY   10017,
U.S.A.


Success Factors

The US National Biotechnology Policy Board has released a report
which explores the elements of success in biotech.

The report examines
     * Benefits and Risks
     * Underpinnings of Industry
     * Health and Safety Regulations
     * International Perspectives

Contact:  National Biotechnology Policy Board, Dept Health &
Human Services, Washington, DC  20201, USA.

                               Š


NETWORK NOTES

Saskatoon Champion City

Saskatoon has been selected as a "Champion Community" by the
Canadian Chamber of Commerce. The champion project was created
to highlight some of the positive business activities occurring
in Canadian communities, said Phil O'Brien, chair of the Canadian
Chamber of Commerce.

"The idea is to celebrate people, communities and cities for
doing the right thing," O'Brien said at a meeting in Saskatoon
Wednesday. The city was chosen because of its plan for growth
through its Economic Development Authority and its potential
growth in sectors like the agriculture biotechnology and value
added food production.

Five cities from across Canada were selected for this initiative
of the Chamber.  The cities will get national attention and be
used as models for other cities.


DowElanco

DowElanco Canada and the NRC-Plant Biotechnology Institute (PBI)
have a research agreement to investigate the use of Abscisic acid
and analogs in the production of stress tolerant conifer
seedlings.  The agreement is for $1.3 million.

This is a 3 year collaborative project with two PBI groups, the
Biological Chemistry Group (Sue Abrams) and the Conifer
Biotechnology Group (D. Dunstarr) and DowElanco Canada Inc.  At
PBI, Dr. Patricia Rose and Eric Pass are synthesizing analogs of
the plant hormone abscisic acids.  The hormone regulates
transpiration and plant stress tolerance.  The hormone and
analogs will be tested by B.C.R.C. and the results will be used
by the PBI team in molecular modeling structure/activity studies
to design more beneficial bioactive compounds.

For information contact Dr. Sue Abrams (306) 975-5333.


CIB

The Canadian Institute of Biotechnology (CIB) and the National
Institute of Nutrition will present a one-day seminar and
workshop on Risk Communication. The seminar will be led by Dr.
Vincent Covello, internationally renown expert in this area. 
Participants will learn practical, proven techniques for credibly
presenting information to the public and media.

The seminar will take place on February 17, 1994, at the Westin
Harbour Castle in Toronto.  The cost is $285 for members of NIN
and CIB organizations, or $350 for others; registration is
limited to 150. 

For more information, please call Diana Daghofer at NIN at (613)
235-3355 or fax (613) 235-7032.


Roundtable

The Second International Roundtable on Animal Feed
Biotechnology-Probiotics will be held at the Westin Hotel in
Ottawa, Ontario on February 3-4, 1994.  It will cover the
scientific aspects of biotechnology as it specifically relates
to probiotics and will link the scientific knowledge to
regulatory issues.

For further information contact:  Dr. S.K. Ho at (613) 993-6002
or fax (613)995-8175


Biofungicide J.V.

Esso Ag Biologicals, based in Saskatoon, is a partner in a $3.2
million collaborative research venture for developing
biofungicides.  The project is being promoted by the University
of Laval, McGill University and Agriculture Canada.  The other
corporate partners are Plant Prod Quebec, Bio Expert and Premier
Research. Synergy, Quebec a component of the provincial
government's Technology Development Fund will contribute $1.4
million to the project.  It is one of seven research ventures to
which Quebec contributed a total of $9.9 million in 1993, through
Synergy.


Capital Company Accelerates

Working Ventures Canadian Fund Inc. is a labor sponsored capital
company with assets of $146 million is moving into an aggressive
spending phase.  Recent changes in security regulations and
provincial legislation have removed restrictions which were
impeding investment by the company.  One of the most recent
investments was in Saskatoon-based Biostar Inc. a company which
develops and markets genetically engineered vaccines and
components for animal and human health use.  The investment
announced in November '93 is for $2 million dollars.


Vitality Becomes Bioriginal

Vitality Health Science Corporation, a Saskatchewan based company
which produces health food products and cosmetic components, has
changed its name to Bioriginal Health Science Corporation.


Hoechst to be named AgrEvo

Hoechst Canada Inc. will become AgrEvo as part of its global
restructuring strategy.  The action comes on the heels of a joint
venture agreement between the agricultural division of Hoechst
and Scherring, a German-based chemical company.


FBCN

The Food Biotechnology Communications Network (FBCN) will hold
its next meeting on January 20th at the Ramada Renaissance in
Saskatoon.  Various communication issues, such as ethics and
education, will be discussed.

Thirty-eight organizations took part in the inaugural meeting in
November.

The Network now has nine sponsors and has received a grant from
the Canadian Institute of Biotechnology (delivered through IBAC).

For details call Randy Goodfellow (613) 235-5360.


Fund Set for SRC

The Saskatchewan Research Council will be endowed with a $500,000
memorial fund established by Ian Wahn Q.C., a retired Toronto
lawyer.  Wahn, a former Saskatchewan resident, presented $25,000
to the council in the fall of 1993 to initiate the fund.  It will
back SRC projects that support the development of Saskatchewan
businesses, farms, research communities and natural resources.


Transgenic Field Trials

In the 1993 crop year Agriculture Canada approved 482 transgenic
crop field trials at 87 locations.  The majority of trials were
for Canola. Other trials involved corn, flax, potatoes, soybeans
and tobacco.

Research covered a range of crop development opportunities
including insect, herbicide and disease resistance as well as
enhanced nutritional qualities and stress tolerance.

For more information contact Joyce Byrne at (613) 992-2114.


PGS

Plant Genetic Systems Canada (PGS) of Saskatoon, has signed an
agreement with the NRC-Plant Biotechnology Institute to work in
collaboration on the application of genes developed by PGS to
transform Brassica juncea and Brassica compestris.


Transgenic Plants Not More Invasive

Michael Crowley with Imperial College in the UK has led a 3 year
study which demonstrates that genetically engineered oilseed rape
is no more invasive, and in some instances, less invasive, than
conventional rape.  It provides good evidence that transgenic
crops carry no more risk to natural habitats and the ecological
balance than traditional crops.


Biobased Diesel Booster

A new technology which converts vegetable oil to a performance
enhancing diesel additive has been developed in a collaborative
venture between the Saskatchewan Research Council and Energy,
Mines and Resources.  The product boosts octane in fuel while
reducing engine emissions. 

The research was funded by Agriculture Canada.
For further information contact Mark Stumborg at (306) 773-4621.


AGC Revamps

As a result of a corporate strategy review, Agricultural Genetics
Company Limited will now operate through three subsidiary
companies. The subsidiaries are:

     * AXIS Genetics, a new organization formed to carry out  
       technology licensing and business development. The company
       will be directed by Dr. Iain Cubbit, former head of     
       Nickerson BIOCEM, a division of  Limagrain.
     * Cambridge Plant Breeders is an existing company which will
       continue to carry out plant breeding under the management
       of Ray Spreadbury.
     * MicroBio manufactures and markets biofertilizers and  
       biopesticides. General Manager, Dr. Peter Innes, has been
       with AGC since 1984 and General Manager of MicroBio since
       1991.

MicroBio holds a 51% share of MicroBio RhizoGen (MBR) of
Saskatoon.  MBR will continue to report to Innes.

There is no immediate change anticipated in the operation of the
AGC companies and its joint venture partners.

The reorganization has been undertaken in order to position AGC
strategically for upcoming public share offerings.


CDC Receives Grant

The Crop Development Center (CDC) at the University of
Saskatchewan will receive $250,000 over five years to carry out
research on high quality milling oats.  Quaker Oats and Cargill
Canada are the project co-funders.


New Flax Variety

Linola, a new variety of flax which produces edible oil that is
low in linoleic acid, has been registered by Agriculture Canada. 
The oil content is higher that found in canola and has some
qualities similar to sunflower oil.

United Grain Growers was involved in the development of Linola
and will contract 100,000 acres in Manitoba and Saskatchewan in
1994.


Calgene Inc. Shows Loss

At the close of their first quarter ending September 30, 1993,
Calgene had a net loss of $10.4 million in revenues of $6.2
million.  CEO, Roger Salquist reports that these results were
expected and are primarily due to expenses related to the launch
of the FLAVR SAVR_ tomato.

Calgene is currently marketing traditionally bred premium
quality, vine ripened tomatoes under its MacGregor Brand_.  Once
appropriate FDA approvals have been received FLAVR SAVR_  will
move into the MacGregor_ pipeline for distribution.  Distribution
is planned for 9 midwestern markets in the US.

Significant production levels are expected for late spring of
'94.


Jacques Canada Changes Name

Jacques Canada has become Mycogen Canada.  As part of the Mycogen
family the company has access to all the scientific research,
patents, germplasm and seed varieties developed by Mycogen.

During the past crop year Mycogen Canada carried out Canadian
field trials for corn borer resistant corn hybrid, high nutrition
corn hybrids for feed and supernodulating soybeans.


Limagrain Acquires BTI

Negotiations for the acquisition of 67% of BioTechnica
International (BTI) by Limagrain are nearing completion.
Limagrain, a French seed company, will guarantee a $15M line of
credit for BTI.  It is anticipated that Limagrain's US
subsidiary, Shissler Seed, will be merged with BTI.


Saskatchewan Wheat Pool Venture

Saskatchewan Wheat Pool (SWP) is investing $1.2 million to set
up a processing facility in Saskatoon.

The new plant will essentially pre-cook a wide range of grains.
The goal is to make products more attractive to consumers by
reducing the preparation time.

According to Mark Pickard, with the Pool's agricultural research
division, it is expected that the facility will be in operation
by April.  It will employ five people.

The new company will be called InfraReady Products Ltd.  The name
reflects the technology used in the process.  "Micronizing
technology" uses infrared energy to partially cook everything
from lentils and wild rice to cereals. It also stabilizes
products such as wheat germ which, because of their high oil
content, have a short shelf life.

"Everything is driven by convenience.  There are a lot of grains
produced in Saskatchewan that have a long cooking time," Pickard
said.

Ottawa and the provincial government are contributing a total of
$140,000 to the project through a five year loan.


AgroCultures Biotechnologies Launched

AgroCultures Biotechnologies Inc. is a newly established Canadian
firm specializing in transgenic technology which will enhance the
production of recombinant proteins for food, therapeutic and
diagnostic use.  It is based in Montreal and operated from the
MacDonald Campus of McGill University.

The new technology, which has been patented by AgroCultures, will
permit modification of lactation processes and enable the
development of transgenic dairy cows.

Dr. Jeffrey Turner, a specialist in dairy molecular genetics, is
the founder and CEO of AgroCultures. He is enthusiastic about the
potential of his new company "advances in gene transfer
technology allow us to harness the enormous protein synthetic
capacity of dairy cattle."  He anticipates that innovative
products incorporating these new components will bring major
benefit to the dairy industry.

The company will work both independently and with biotechnology
and pharmaceutical companies to commercialize the proteins.

Start-up capital for the company was provided by MDS Health
Ventures, Ontario and Societe Innovatele, Quebec.

Commenting on agbiotech investment, William Garriock, VP with MDS
said "We're very encouraged by the science that is coming out of
Canadian universities and from individuals who are bringing new
technologies forward.  I believe that a lot of the new activity
has been encouraged by the changes to the Patent Act in 1987 and
the success of scientific entrepreneurs in the US. Canadian
scientists have seen the results of commercial collaborations and
now they're connecting with business people and companies like
venture capital firms like MDS."

MDS provided 30% of the capital for AgroCultures and has six
other investors (primarily pension funds) involved.

For further information contact: Dr. Jeff Turner (504) 945-8391


NRC-PBI

NRC-PBI has announced the introduction of reduced rates for
custom synthesis of oligonucleotides and DNA sequencing.

Contact Dr. Wolf Kurz for details (306) 975-5570.


StressGen Gets License Agreement

StressGen Biotechnologies Corp. of Victoria has reached an
agreement with Massachusetts Institute of Technology and
Whitehead Institute for Biomedical Research to commercialize
microbial derived "stress proteins".  The proteins are newly
identified immune system stimulants which may become the
foundation for genetically engineered vaccines for human and
animal applications.

It is anticipated that the technology will be the foundation for
a highly potent class of genetically engineered vaccines which
will help prevent infectious diseases and act as therapeutics for
cancer.

StressGen selected the technology because of its broad utility
and application to medicine.  This agreement provides a key
component in the companies strategy to become the leading stress
protein-based biopharmaceutical company.

Research pioneered by StressGen's founders has focused on a
unique class of proteins that all organisms make in response to
life-threatening heat or chemical toxins at the cellular level. 
Originally called "heat shock proteins," these molecules also
play a key role during non-stressful conditions and are essential
to helping maintain the three-dimensional folding of cellular
proteins necessary for life.  Recent studies have shown that
these "molecular chaperones" play a central role in the body's
defense against disease.

Results of studies during the past five years demonstrate that
the immune system is primed to respond powerfully to the stress
proteins of invading pathogens.  Functioning as an "early warning
system" to defend against microbial infections and other forms
of "non-self," stress proteins are "super antigenic": they
strongly stimulate the production of disease-fighting antibodies,
as well as specialized white blood cells against disease.

StressGen is applying proprietary technology based on the
universal ability of stress proteins to rapidly and specifically
activate the immune system.  The company's Unigen_ -- "universal
antigen" -- technology is aimed at using genetically engineered
stress proteins to unlock the power of the immune system to
prevent and treat disease.  StressGen is developing
infectious-disease vaccines, therapeutic cancer vaccines, vaccine
adjuvants and carriers; and manufactures and markets
stress-response reagents to researchers worldwide.
For more information contact: Richard Glickman  (604) 774-2811


New Addition to Swine Centre

The Prairie Swine Centre (PSC) has added a new weanling unit to
its facility.  The new structure will compliment the 250 sow
farrow-to-finish operation and replace the continuous flow
nursery.  It will provide a superior environment for weanling
pigs.  The design will assist in gaining optimized levels of
trial data from pigs weaned.

PSC is a research facility that can do contract research in the
area of swine production.


New uses for Alfalfa

University of Wisconsin Biotechnology Centre (UWBC) research
team, coordinated by UWBC plant biotechnologist Sandra
Austin-Phillips, has genetically engineered alfalfa to produce
alpha-amylase, an enzyme that is widely used in food processing
and manganese-dependent lignin peroxidase (MN-P), an enzyme that
shows promise for degrading lignin and for bleaching pulp in the
biopulping process.

"Currently, most industrial enzymes are produced in
microorganisms by large-scale fermentation," says Richard
Burgess, UWBC Director and Principal Investigator of the product,
"but preliminary data show that we can genetically engineer
alfalfa to product enzymes.  We are now testing the scale-up
process to determine if producing enzymes in alfalfa is
economically feasible."

The availability of large amounts of inexpensive enzymes can fuel
emerging industries such as biopulping, biomass conversion, and
bioremediation.

UWBC is seeking companies that wish to team up with the Center
to produce commercially valuable enzymes in transgenic alfalfa.

Contact Dr. Sandra Austin-Phillips at (608) 262-7293, Fax (608)
262-6748.

Adopted from UWBC Update.

                               Š


PEOPLE WATCH

Cangene

Dr. Eric James has retired as Chairman of the Board of Cangene.
As one of the founders of the company he will remain involved on
a part-time basis and continue to hold a seat on the board.


Allelix Biopharmaceuticals Inc.

Lester Gagnon has been appointed Executive VP of Allelix
Biopharmaceuticals Inc. He will be responsible for research,
clinical and manufacturing operations.  He has 35 years of
international experience in pharmaceuticals.


Pfizer Consumer Health Care Group

Clive Hammant has been appointed Director of Leunsing for
Pfizer's Consumer Health Care Group.  He was previously Director
of Product Technology with the Animal Health Group.

Dr. Bruce Groves, former Manager of Pfizer's Animal Health
Division will assume responsibility as Director of Product
Technology with the Animal Health Group.


Sask. Environment and Resource Management

Bob Baird is the new Co-ordinator of Corporate Environmental
Management for the Saskatchewan Department of Environment and
Resource Management.  He is responsible for organizing a
Saskatchewan Environmental Managers Association and for
co-ordination of the Environmental Management Seminar Series.


PGS

Debbie Doell has been hired as a full-time technician at Plant
Genetic Systems (PGS) doubled-haploid laboratory in Saskatoon.


New Federal Cabinet Members

Ralph Goodale is now Minister of Canada Agriculture and Agrifood.
He is a former leader of the Saskatchewan Liberal Party and was
a member of the House of Commons for five years.  During that
time he was Parliamentary Secretary to the Minister of Transport
and to the Minister responsible for the Canadian Wheat Board.

Goodale piloted the Western Grain Stabilization Plan through
Parliament and assisted in the implementation of the Prairie
Branch Line Rehabilitation Program.

Sheila Copps is Deputy Prime Minister and Minister of the
Environment.  First elected in 1984 she has held a number of
critic posts since she became Deputy Leader in 1991.  She is a
former provincial member of parliament.

Anne McLellan is Minister of Natural Resources.  She has been an
active human rights advocate for many years.  McLellan holds a
Master of Law degree from Kings College University of London.

Dr. Lloyd Axworthy is Minister of Western Economic
Diversification.  He has been a member of the House of Commons
since 1979.  He has served as Minister of Employment and
Immigration, Minister of Transport and Minister responsible for
the Status of Women.  In Opposition he was External Affairs
Critic, and Chair of the Liberal Trade Task Force and the Caucus
Economic Policy Committee.

Axworthy was member of the Manitoba Legislature and professor of
political science at the University of Winnipeg.
Roy MacLaren is Minister of International Trade.  He is former
Minister of State (Finance) and Minister of Natural Reserve.  He
is the publisher of Canadian Business Magazine.  He was in the
Foreign Service for 12 years and was VP of Massey Ferguson and
president of Ogilvy & Mather, a national advertising agency.

In Opposition he was Trade Critic and chair of the Caucus
Committee on Economic Policy.

Diane Marleau is Minister of Health.  She has been a Member of
Parliament since 1988.  She is former Deputy Whip and Associate
Critic for Finance.

Prior to her election she was active in municipal government and
community affairs.

John Manley is Minister of Industry.  He was first elected to the
Commons in 1988.  He has served as Critic for Science and
Technology, Transport Center and Co-Critic for Finance.  He holds
a law degree from the University of Ottawa.

Dr. Jon Gerrard is Secretary of State for Science Research and
Development.  He is former Head of Pediatric Hematology/Oncology
at the Childrens' Hospital of Winnipeg.  He was also professor
Medicine at the University of Manitoba.

He has a special interest in the environment and is a recognized
author and naturalist.


SRC Appointments

Seven new directors were recently appointed to the Saskatchewan
Research Council (SRC) Board.

They are June Draude of Watson, vice-chairperson; Dr. Nicholas
Cercone, Regina; Robert Hawkins, Humboldt; Albert Lowe, North
Battleford; Patricia Trask, Harris; Verna Mitura, Regina; Bonnie
Missens, Saskatoon. 

Reappointed for another term are Jim Hutch, SRC president and
CEO, and Val Kononoff, Arelee.  Other board members are Doug
Anguish, Minister responsible for the SRC, Dr. Peter Nikiforuk
and Dr. Dennis Johnson, Saskatoon, and Dorlas Bratvold, Vanguard.

John Cross, president of Philom Bios, Saskatoon, is now
chairperson. 


Saskatoon Prairieland Exhibition

Rudy Friesen has been appointed Agriculture Manager of the
Prairieland Exhibition.  Friesen replaces Michael Fleury who now
works with Saskatoon Livestock Sales.  Friesen was executive
director for Foundation for Animal Care Saskatchewan Inc. 


ILCA

At its October meeting, the International Livestock Center for
Africa (ILCA) Board of Trustees elected Dr. Neville Clarke to be
the next Board Chairman.  He succeeds Dr. Dieter Bommer who will
step down as Board Chairman after the Board's meeting in May
1994.  Clarke is Vice-Chairman of the ILCA Board of Trustees and
Chairman of the Board's Audit Committee.

Clarke is Director-at-Large of the Southern Association of State
Agricultural Experiment Stations, USA.  He has also served as the
Scientific Liaison Officer between the United States Agency for
International Development (USAID) and ILRAD.


AgriCapital Corporation

AgriCapital Corporation has announced that Paul King has joined
its consulting board.  King will assist AgriCapital in serving
agribusiness clients throughout Canada.  He is past President of
F.I.S., an international seed trade federation.

King is the former President and Chairman of King Group (and its
two divisions, King Agro and King Grain) of Chatham, Ontario.

AgriCapital Corporation provides private investment banking
services to international agribusinesses.  Its services include
arranging mergers and acquisitions; structuring and securing debt
and equity financings; and providing financial consulting.

                               Š


Articles, announcements and suggestions are welcome.

For additional information or correspondence contact :

Dr. Murray McLaughlin, President
Ag-West Biotech Inc.
222 - 111 Research Drive
Saskatoon, Saskatchewan
Canada   S7N 3R2
phone:   (306) 975-1939   
fax:     (306) 975-1966  

The AgBiotech Bulletin
is published by
Westcross House Publications
608 Duchess Street
Saskatoon, Sk.  Canada  S7K 0R1

Funding assistance is provided by
The Saskatchewan Agriculture Development Fund
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