GENET archive


BUSINESS: DuPont goes the DNA dance

                                  PART I
------------------------------- GENET-news -------------------------------
TITLE:  DuPont goes the DNA dance
SOURCE: Industry Week, USA
AUTHOR: John Teresko
DATE:   01.04.2007

DuPont Does The DNA Dance

Biotechnology is reshaping the world through our medicine, food,
agriculture, materials and fuel. DuPont sees biotech as the ideal tool
to improve productivity, quality and sustainability.

April 1, 2007 -- Pork chop bearing trees and Pigs capable of
photosynthesis are still not possible, but no one in biotechnology is
ruling anything out just yet. Consider what's already been made possible
by changing the way nature works:

- Cells modified to serve as drug factories.
- Bio-based polymers with characteristics superior to hydrocarbon-based
- Disease prevention by selectively blocking genetic messages.
- Commercial production of corn-based ethanol with cost-competitive
cellulosic-derived ethanol being developed.
- Plants genetically modified to naturally resist both insects and drought.
- Plants re-engineered to produce new products such as medicines or materials.

Although referred to as an industry, in reality biotechnology is better
described as a set of techniques to alter the genetic programs of living
organisms. Biotechnology provides the opportunity for controlling
biosystems to do things now done only by physics or chemistry or perhaps
not at all. The result is technology that is encroaching on many
conventional industries doing things the old ways.

Biotech's growth characteristics present opportunity at all economic
levels. For example, regions like North Carolina see opportunities to
support and extend biotech leadership via statewide workforce
development programs. The reason: U.S. growth within biotech has
exploded since 1992, with U.S. revenues increasing from $8 billion to
more than $311 billion.

Between 1998 and 2008, North Carolina Central University (NCCU)
anticipates a 98% increase in pharmaceutical and medical-manufacturing
jobs, a 103% increase in research and development jobs in physical
engineering/life sciences, and a 146% rise in medical and diagnostic
laboratory jobs. Li-An Yeh, professor of biology at NCCU, says North
Carolina, which ranks in the top three biotechnology regions in the
U.S., is poised to lead the way in biotech education, research and
employment. (About 65% of the state's biotech companies are within 20
miles of the Durham campus.) Yeh also serves as the director of the
university's Biomanufacturing Research Institute and Technology
Enterprise (BRITE), a biotech workforce training initiative.

BRITE goes hand-in-hand with NCCU's selection as a lead university
(along with North Carolina State University) with the Biomanufacturing
and Pharmaceutical Training Consortium (BPTC). Employment goals for the
consortium, which includes the state's Community College System, target
125,000 jobs by 2023, says Susan Fleetwood, director of strategic
projects with the North Carolina Dept. of Business/Industry Division.

Since the human therapeutics and diagnostics have been the early focus
of most biotech activity, a medical connotation is still closely
associated with the word "biotechnology," but that's changing as new
applications emerge. But don't expect fewer significant developments in
medicine. For example, MIT recently demonstrated the biosynthesis of a
Hodgkins lymphoma drug (vinblastine) via manipulating the American
periwinkle plant, says Sarah O'Connor, assistant professor at MIT. In
medicine, biotechnology continues to emphasize improving on Mother
Nature instead of merely mimicking her.

DuPont's Vision Of A Biofuture

Biotechnology is rapidly becoming a more inclusive term, observes Walt
Plosila, vice president of R&D firm Battelle's technology practice. In
addition to pharmaceuticals, the bio prefix is increasingly attached to
fuel, materials, food and agriculture.

En route to that future, the wide-ranging implications of biotechnology
are not just as new alternatives for old procedures. Biotech has the
power of remaking the basic operating presumptions of companies.

As an example Plosila cites DuPont's innovative strategy of displacing
fossil fuels as building blocks of chemicals. Instead of counting on
someone drilling for hydrocarbons, DuPont's revised goal, unlike most
chemical companies, is to target economic growth via bio-based raw
materials. DuPont envisions a biofuture.

Charles O. Holliday, Jr., chairman and CEO, revealed the comprehensive
strategy at a BioVision Conference in Lyon, France. "In the 21st century
our emphasis will be on using nature's processes to build sustainable
systems and create sustainable products to address global need."

Holliday emphasized the rapid growth of that need: "Demographers project
9 billion people by 2050. We now have 6.5 billion." He continues to make
a similar projection for the demand for fiber, materials, energy and for
human health issues. "To respond to all these needs, the technologies we
adopt must address productivity, consistency, adaptability, quality and
sustainability." His conclusion: "There is no more powerful tool at our
disposal for addressing these global needs than biotechnology."

One demonstration of that power is in biotechnology's ability to tailor
crops, such as corn, to naturally resist insects without the use of
insecticides. By eliminating insecticides, both costs and side effects
are controlled and minimized. Genetic modification of plants can also
increase a crop's drought tolerance.

In agriculture, Pioneer Hi-Bred International Inc., a DuPont subsidiary,
helps execute the corporation's biotech business strategy. One example
is the development of new soybean varieties that will help answer the
need to reduce trans fats without affecting the taste of baked goods and
confectionery foods. A joint venture with Bunge Ltd., Solae Co. markets
low linolenic soybean oil to food companies.

DuPont Engineering Polymers announced its commitment to biotech last
year with two high performance polymers, Sorona and Hytrel, made from
renewable resources. DuPont Sonora with Bio-PDO (its first corn derived
polymer) will be available in mid 2007. Bio-derived Hytrel will be
available in the fourth quarter.

"With these new products, we will be able to offer our customers the
benefits of renewable sourced materials -- reduced dependence on
petrochemical sourcing and a positive impact on the environmental life
cycle of their products," says Nandan Rao, vice president, global
technology for DuPont Performance Materials.

In addition to replacing petrochemicals with renewable resources, the
manufacturing of Bio-PDO requires approximately 40% less energy than its
petrochemical-based counterpart. Estimated savings, says DuPont, are the
equivalent of about 10 million gallons of gasoline per year, based on
annual production volumes of 100 million pounds of Bio-PDO (produced by
a joint venture with Tate & Lyle).

"Both of these new products will contribute to our corporate goal of
deriving 25% of our revenue from non-depletable resources by 2010," says Rao.

The performance and processing characteristics of both Sorona and Hytrel
made with renewable resources are as good as or better than those of
current products made wholly from petrochemicals, adds Rao.

Stalking The Corn Markets

Last year dupont through its formation of DuPont Biofuels started to
engage its capabilities in agricultural biotechnology, metabolic
engineering, chemistry and process engineering. "DuPont's sci- entific
capabilities in biofuels position us well for substantial growth," says
Thomas M. Connelly, senior vice president and chief science & technology

Today, DuPont's annual revenues from global biofuels markets, largely
from agricultural inputs to fuel ethanol, are about $300 million.
Connelly says the company expects to substantially increase its
activity, resources and revenues in those markets by 2010.

One part of the strategy is teaming with the U.S. Dept. of Energy to
jointly fund research conversion of corn stover and other cellulosic
materials into biofuel. In the first quarter of 2007 DuPont, with
partner Broin Co., won one of six government grants to develop bio-
refineries that can reduce the cost of producing ethanol with nonfood
crops and agricultural waste -- grass, straw and wood chips.

The objective is to meet the national energy goals announced by
President Bush, making the cost of cellulosic ethanol competitive with
gasoline by 2012 and reducing U.S. gasoline consumption 20% in 10 years.
Corn-based ethanol is constrained by the grain's significant other
market -- food.

Being able to utilize both the grain and stover will greatly increase
productivity per acre. The other benefit of cellulosic ethanol is its
ability to sharply reduce greenhouse gases. Corn-based ethanol has only
a small effect.

DuPont uses a microorganism to convert the stover. The microorganism is
a native of the tropics where it normally lives in the sugar sap of the
agave plant, a plant that is commonly used to make tequila.

Another example of DuPont's biofuel efforts is a biobutanol development
partnership with BP. When co-blended with ethanol the benefits include
enhanced stability that permits use of existing fuel supply
infrastructure. DuPont also claims higher biofuel blends with gasoline
plus improved mileage.

In setting forth a biofuture, DuPont has set ambitious objectives for
its 2015 sustainability goals, which include:

- Double R&D investment in environmentally smart market opportunities.
- Grow annual revenue $2 billion or more from products that create
energy efficiency and/or reduce green gas emissions.
- Double annual revenue to $8 billion from non-depletable resources.

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                                  PART II
------------------------------- GENET-news -------------------------------
TITLE:  US Biotech Market Analysis
SOURCE: Research & Markets, USA
DATE:   01.03.2007

US Biotech Market Analysis

"US Biotech Market Analysis provides an updated and detailed overview of
the U.S Biotechnology industry. It examines the emerging trends and
provides exclusive forecasts, segment wise snapshots of biotechnology
industry in U.S.

Key Findings

- Growing at the rate of 13.95% from the year 2005, U.S Biotechnology
industry is expected to touch the mark of US$ 131.8 Billion by the end
of 2010.
- Biotechnology will play an important role in Agricultural sector by
developing large number of genetically modified seeds.
- The biomedical sector accounts for the major share of overall biotech
industry in US and will continue to dominate in future as well.
- The clinical trial industry will cross US$ 30 Billion mark by 2011.

Key Issues and Facts Analyzed

The research report also addresses the issues and facts that are
critical to your success:

- Major market trends in the US Biotechnology industry?
- Where will the market be after 5 years?
- What opportunities exist in US Biotechnology industry?
- What are the driving factors for the US Biotechnology industry?
- Challenges faced by Biotechnology industry?
- Who are the main players in the US Biotechnology industry?

Key Players Analyzed

This section provides the overview, key facts financial information of
prominent players in the Indian Biotechnology Industry like Chiron
Corporation, Amgen Inc., Biogen Idec Inc., Applied Biosystems,
Genentech, and Baxter International Inc.

Research Methodology Used

Information Sources

Information has been sourced from namely, books, newspapers, trade
journals, and white papers, industry portals, government agencies, trade
associations, monitoring industry news and developments, and through
access to access to more than 3000 paid databases.

Analysis Methods

The analysis methods include the following: Ratio Analysis, Historical
Trend Analysis, Linear Regression Analysis using software tools,
Judgmental Forecasting and Cause and Effect Analysis.

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