UpDate - Vol. 13, No. 8, Page 1
October 21, 1993
Research efforts lead to new commercial development

     The research efforts of Jacques J. Pene, associate professor of life
and health sciences, and doctoral candidate Ramaswamy K. Iyer will be
developed commercially through ProteinGenesis Inc., a new Delaware protein
engineering company.
     Using technology developed by Pene and Iyer, which offers significant
advantages over existing methods, the company will create novel proteins
for industrial and pharmaceutical uses. ProteinGenesis Inc., the
cooperative commercial venture, involves the two researchers, Research
Corporation Technologies (RCT) and the University of Delaware. All parties
are represented on the corporation's board of directors. RCT, of Tucson,
Ariz., commercializes technologies developed at universities and non-profit
laboratories throughout North America.
     Currently, industries that use enzymes to make detergents or paper or
to process food must rely mainly on proteins that occur naturally in many
organisms.
     To find new enzymes, scientists must screen innumerable bacterial,
fungal or other organisms in the hope of finding an enzyme with the desired
characteristics they are seeking.
     Another approach involves x-ray crystallography and computerized
molecular modeling to help researchers make intelligent guesses toward
designing new proteins. But, this technique is limited, time consuming and
expensive.
     ProteinGenesis, with its ability to generate novel proteins, will open
new vistas for protein engineering and the associated commercial markets.
     Analysts project a $1.1 billion market for industrial enzymes by the
start of the 21st century.
     RCT is managing and financing the new company, which will employ the
technology developed by Pene and Iyer. Bennett N. Cohen, an RCT technology
transfer associate, is interim president and chief executive officer of
ProteinGenesis. Pene is the company's vice president for research and
development. Iyer, who will receive his doctorate in December, will become
laboratory director. RCT, the University and the inventors all hold equity
in the Newark-based company.
     According to Cohen, during the first three to five years, the company
will focus on creating novel, improved industrial enzymes and providing
contract research.
     "Our objective is to launch a new company into a prominent market
position as rapidly as possible," Cohen said. "We will create a series of
high-value products to show the feasibility of the technology and introduce
these products for licensing. This will further prove the value of this
technology and make it desirable to industrial protein producers and
users."
     According to Costel Denson, the University's interim vice provost for
research and its representative on the board of directors of
ProteinGenesis, the arrangement with RCT and formation of ProteinGenesis is
an excellent example of how the University's research community and private
industry can cooperate to bring basic research results to commercial
realization.
     The state and surrounding community also will benefit, he added. "As
we in the state of Delaware look to develop and attract high technology
businesses to the state, this is an excellent example of technology
transfer and how the University, community, state and researchers all
benefit," Denson said.
                                                  -Ed Okonowicz