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Biotech / Medical : Monsanto Co. -- Ignore unavailable to you. Want to Upgrade?


To: Dan Spillane who wrote (1559)3/10/1999 5:08:00 PM
From: Danny Hayden  Respond to of 2539
 
DuPont plans alliance, new stock

WILMINGTON, Del., (Bloomberg) - DuPont, the biggest U.S. chemicals
company, said Wednesday it expects to announce a pharmaceutical alliance
this year and plans to issue stock to track the performance of its life
sciences businesses.

The maker of the Sustiva AIDS pill said last year that life sciences
businesses such as agriculture, drugs and biotechnology would become the
centerpiece of future earnings growth. Last week a person close to
Monsanto who is familiar with the matter said DuPont is in preliminary talks
about a business combination.

DuPont said it's in discussions with unspecified companies to bulk up its
relatively small pharmaceuticals business and help the company reach
''critical mass'' in the industry. The creation of two classes of common
shares will allow investors to separate DuPont's faster-growing life sciences
business from its traditional chemicals business.

''These are bold management moves, and it will change the way investors
look at DuPont's stock,'' said Frank Mitsch, an analyst at Deutsche Bank
Securities who raised his rating on the stock Wednesday to ''accumulate''
from ''hold.''

Life sciences contributed about $4.3 billion to last year's $24.8 billion in
sales, though after charges, the unit posted a net loss.

Wilmington, Del.-based DuPont said it expects to file to sell the tracking
stock no sooner than the end of this year, and that the move will then be
subject to shareholder approval.

With the introduction of a tracking stock, DuPont may have hit on the
solution to the biggest obstacle to an alliance with a drugmaker, an analyst
said. Still largely a chemicals maker, DuPont's stock sells for about 21 times
its estimated 1999 per-share profit, while shares of drugmakers can sell for
more than 50 times their estimated per-share profit.

By separating the more-profitable life science businesses, DuPont likely will
have a stock that trades at higher multiples of estimated future profit.

''It's been a real tight rope for DuPont and this is a creative way to do it,''
said Sano Shimoda, president of BioScience Securities, an investment
company specializing in agricultural biotechnology. ''This is a way to have
your cake and eat it too.''

The company said tax consequences of the stock issue may be affected by
the Clinton administration's fiscal 2000 budget, which is targeting tracking
stock as a tax loophole.

DuPont shares rose 2 15/16 to 56 1/2 in midday trading Wednesday.

''Clearly they've got a few drug products that are doing well, but they need
something more that has the potential to create value,'' said Rex Bentley, a
fund manager at Safeco Asset Management.

DuPont missed out on one of its best potential partners in January when
Warner-Lambert announced its plan to buy Agouron Pharmaceuticals Inc.
for $2.1 billion in stock.

''It would have been one of the ideal matches'' for DuPont, said Elise Wang,
a PaineWebber analyst who covers biotechnology companies.

If DuPont wants to bulk up its offerings of drugs to fight HIV, it could seek
alliances with one of several biotechnology companies with experimental
anti-AIDS medicines in advanced testing, Wang said. These include
Triangle Pharmaceuticals, Trimeris, BioChem Pharma and Gilead Sciences,
she said.

DuPont also might seek to bolster its HIV-drug franchise by joining forces
with one of the large drugmakers that already sells its own anti-AIDS
medicine. Bristol-Myers Squibb, for example, already has HIV drugs on the
market and is working on new ones.

One large drugmaker already has found DuPont not to be an attractive
partner. Last year, Merck, the world's biggest drugmaker, used an option to
sell its half to DuPont for $2.6 billion. The venture hadn't contributed
significantly to Merck's profit growth and wasn't likely to in the future.

Moneyline
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To: Dan Spillane who wrote (1559)3/10/1999 5:19:00 PM
From: Anthony Wong  Respond to of 2539
 
GM food scare down-under: Gene food chaos

By MICHELLE COFFEY
The Australian
10mar99

HUNDREDS of illegal "mutant" foods could soon appear on supermarket shelves
throughout Australia.

Baby food, bread, cheese, margarine and potato chips are among an estimated
500 everyday items containing genetically modified (GM) ingredients imported from
North America and Europe.

Under new standards, GM food must be tested and declared safe by Australia's
food watchdog by May 13.

But a month-long Herald Sun INSIGHT investigation has found only two of the 56
GM ingredients used by Australian food manufacturers have been approved by the
Australia New Zealand Food Authority.

In a move that could cause chaos in the $43billion food industry, the ANZFA
concedes the products will have to be stripped from shelves after May 13.

And proposed laws under which all GM food would have been labelled look set to
be overturned, leaving consumers with no way of knowing what they are eating.

The nation's peak food industry group claims GM food poses no risks.

"These products may technically be in breach of the law, but the foods would not
be on shelves if they were not safe," said Food and Grocery Council chief Mitch
Hooke.

But the Australian Consumers Association's Carole Renouf said: "Gene technology
is too new to know what, if any, long-term health and environmental consequences
there are."

The issue has polarised Britain recently, with three major supermarket chains
refusing to stock GM food.

And it is set to intensify in Australia when the first full-scale public debate begins in
Canberra today.

As a 14-member "citizens' jury" meets to discuss the pros and cons of genetic
modification, an INSIGHT investigation has discovered:

MORE than 70 per cent of Australians want every product containing GM
ingredients labelled.

FRANKLINS has become the nation's first major supermarket chain to audit every
product in its 240 stores for GM ingredients – and will label accordingly.

BAKED beans giant Heinz Wattie's will test its hundreds of ingredients by June for
GM organisms, or GMOs.

HEALTH food company Australian Natural Foods will be the first manufacturer to
have its entire range labelled "GM-Free" by the end of the year.

SANITARIUM – which has been forced make its best-selling So Good soy milk
GM-free – has introduced a policy that will track raw materials from paddock to
plate.

$26MILLION of canola – Australia's largest ever shipment – was sold to Europe in
January because we have the only guaranteed GM-free canola left in the world.

MELBOURNE will host the world's Food and Agriculture Organisation conference in
October – the first time it will be held outside Europe.

With more than 60 per cent of processed foods believed to contain GMOs, the
Australia New Zealand Food Standards Council last August agreed to new
standards to ensure the safety of GM foods.

State and territory health ministers and their New Zealand counterpart gave
companies that import crops such as soya beans and canola nine months to apply
to ANZFA for approval.

Last month the authority approved Australia's first two GM ingredients – Ingard
cottonseed and Roundup Ready soybeans.

Made by the world's leading biotech company, US giant Monsanto, the soybeans
are resistant to the Roundup herbicide. The locally grown cottonseed produces its
own "natural" pesticide, a protein that kills certain insects.

Monsanto has four more applications before ANZFA.

But the Herald Sun discovered AgrEvo – one of the world's biggest producers of
GM canola – had not even applied to ANZFA.

Canola is used in most margarines, cooking oils, frozen chips and mayonnaise.

The head of AgrEvo's Australian biotechnical division, Greg Fraser, admitted it was
very unlikely his company would have ANZFA approval by May 13.

"We cannot legally sell those products now and that means we won't be able to
support the use of our products by food manufacturers in Australia," Mr Fraser
said.

Victorian Health Minister Rob Knowles revealed there were another 50 GM
ingredients used in up to 500 products that had not applied.

"This highlights just how difficult the whole GM debate can become," Mr Knowles
said.

"All the advice available to me is there are no public health risks associated with
the use of gene technology provided they have been scientifically regulated. But by
the same token we don't want to send a message to manufacturers that our new
laws are optional."

Mr Knowles also revealed a decision by health ministers in December to label all
GM food looked set to be overturned because it was unworkable.

ANZFA had originally recommended only GM food which was substantially different
from the normal variety should be labelled.

But, in a surprise decision, ministers split 6-4 in favor of labelling all GM food.

Where manufacturers were unsure whether foods contained GMOs, a "may
contain" label would have to be affixed – a decision Mr Knowles said was
meaningless.

theaustralian.com.au



To: Dan Spillane who wrote (1559)3/10/1999 5:22:00 PM
From: Anthony Wong  Respond to of 2539
 
Sydney Morning Herald: Jury's out on food gene research
Date: 10/03/99
smh.com.au



To: Dan Spillane who wrote (1559)3/10/1999 5:25:00 PM
From: Anthony Wong  Read Replies (2) | Respond to of 2539
 
GLOBAL REPORT Signs of the food fight to come
Chrisitan Science Monitor
WEDNESDAY, MARCH 10, 1999

Gene-spliced plants and
hormone-treated beef raise ethical
questions about how much to fool
with nature.

Laurent Belsie (belsiel@csps.com)
Staff writer of The Christian Science Monitor

ST. LOUIS

Geneticists are on
the verge of
revolutionizing
agriculture and medicine in much the
same way computers have transformed
business. Labs around the world are
working on crops that could feed a
growing planet, plants that could clean up
contaminated soils, and pigs whose
organs may one day get trans-planted
into people.

But to do these things, scientists are
fooling with nature's basic building
blocks. As they do, they are kicking up
dissent around the world as one nation
tries to sell its genetically altered foods to
another's grocers.

BIO-WARS: Activists dumped 4
tons of soya beans on Downing
St., home of British Prime Minister
Tony Blair after he said
bioengineered food was safe to
eat last month.
(MATTHEW FEARN /AP)

The current food fight between the
United States and Europe - over
hormone-treated beef and genetically
altered soy beans - could be just a
prelude of arguments to come. That's
because the greatest risks probably don't
lie with today's simple genetic alterations.
Future rounds of exotic agriculture pose
bigger threats because they will put
organisms to completely new uses. The
fundamental question: How much should
science manipulate nature to care for
mankind?

And there's no going back, scientists say.
Consider the US experience. While
Europeans debate how far to proceed
with the new technology, Americans are
quietly ingesting the new foods, often
without knowing it.

"The genie can't be put back," says
Marshall Martin, an agricultural
economist at Purdue University in West
Lafayette, Ind. "Anyone who eats pizza
or cheese on their hamburger has
consumed genetically modified food....
We pulled the cork out of the bottle in a
sense with the discovery of DNA."

For example, three-quarters of America's
cheese gets its start with a bioengineered
enzyme. Nearly 1 out of 6 dairy farmers
injects his cows with a genetically
engineered growth hormone to boost
milk production. And genetically
modified crops are increasingly taking
over farmlands - with some 70 million
acres planted worldwide, 60 million of it
in North America.

This planting season promises more
inroads. For example, half of America's
soybeans, perhaps more of its cotton,
and a third of its corn could be
genetically modified - a remarkable
adoption rate in the four years since the
new seeds were introduced.

Other countries are also moving rapidly
to incorporate the technology. Last year,
some 650,000 farmers in China planted
genetically modified cotton. And this year
Monsanto, which produces the cotton
seed, expects to double that number.

Even the European Union has approved
bioengineered soybeans and corn. Small
quantities of corn, genetically modified to
resist pests, are being grown in Spain
and, if approved by France's high court,
could start showing up in the fields of
Europe's largest corn producer.

Slow acceptance

Biotech companies such as Monsanto
hope that resistance to the technology
will crumble once European farmers
begin to adopt the new strains. That
move is likely, companies say, because
the new-fangled crops typically improve
yields and cut costs.

"It's likely to be adopted because the
value of the benefits will be recognized,"
says Philip Angell, a Monsanto
spokesman.

Take cotton, one of the world's most
pest-prone crops. By incorporating the
genes of a natural insecticide, scientists
have created a pest-resistant strain that
requires fewer chemicals. It "has been
massively beneficial," says Val Giddings,
a vice president of the Biotechnology
Industry Organization in Washington.

In the three years since they began using
it, US farmers have saved the equivalent
of 850,000 gallons of pesticides - the
equivalent of 48 railroad tank cars of
chemicals.

Cutting pesticide use saves money.
According to newly released figures by
one of Britain's leading plant-research
centers, bioengineered soybeans saved
farmers an average $30 a hectare
because they used 40 percent less
herbicide. Pest-resistant corn saved $42
per hectare. (A hectare represents some
2-1/2 acres.)

Despite these benefits, environmentalists
worry the new crops pose a bigger
hazard to human health and the
environment. They've caught the ear of
many Europeans.

The environmental group Greenpeace,
for example, has mounted an effective
campaign across Europe to block the
sale of genetically modified food. In
February, it persuaded biotech giant
AgrEvo (Hoechst) not to conduct field
trials of such crops in Austria.

In January, it organized
anti-bioengineering protests at the
national offices of three European food
companies in nine countries. Thanks to a
Greenpeace suit, France's highest
administrative court in December upheld
its preliminary ban on genetically
modified corn from a Swiss firm.

The debate rings loudest in Britain, where
memories of the government's
mishandling of "mad-cow" disease remain
fresh. The issue has gone all the way to
the top: Prime Minister Tony Blair is
risking his popularity to support
genetically modified foods, while Prince
Charles says he will never eat any of
them.

Further confounding the issue have been
the findings of Arpad Pusztai, a Scottish
researcher who ignited the whole
controversy. Last summer he was quietly
feeding potatoes to rats. Then he went
public with concerns about the genetically
modified rations he was using.

On one hand, the researcher claims he's
enthusiastic about bioengineering's
potential; but he warns that it has to be
done right because genetically modified
potatoes stunted the growth of rats and
depressed their immune system.

Mr. Pusztai has not released his full
results for review by other scientists - a
traditional practice. And when an internal
audit committee evaluated his study, it
disputed the findings. But 20 scientists
have come forward since, saying Pusztai
may have a point.

Controversy builds

Whatever the outcome, even biotech
executives acknowledge the controversy
is likely to continue. "I think we have to
be very, very careful about how these
technologies are applied," says Richard
Gill, senior vice president and general
manger of BTG International Inc., a
tech-transfer company with offices in the
US, Britain, and Japan. "There needs to
be ... more information shared with
people in a form that can be understood."

Even in the United
States, activists
remain hopeful
they can slow
down the
technology. Dairy
farmer
associations and
consumer groups,
for example,
continue to battle
the milk-boosting
growth hormone.

"Americans are
expressing their
concern with
genetic engineering
and agribusiness in
general, not in a political way but in the
marketplace," says Ben Lilliston of the
Center for Food Safety.

That's why organic products are growing
so rapidly, he says, and why some
200,000 citizens complained when US
agricultural officials proposed including
bioengineered food as organic.

Concern is justified, scientists say,
because no one can predict how nature
will react when new organisms appear.
"We're not talking about killer tomatoes.
We're talking about plants that will pick
up genes," says Norm Ellstrand, a
geneticist at the University of California at
Riverside.

Genes can only transfer to relatives. So
genetically modified corn in Iowa doesn't
pose much danger because it has no wild
relatives there. But planted in central
America, it could create super-weeds
that could out-compete the corn. And the
risks increase as more of these
genetically modified plants get released
into the wild and interact.

The biggest question hangs over plants
containing many new genes so they can
take lead out of contaminated soil or
create ingredients for medicines. "The
next generation of crops is going to be
engineered for truly novel traits.... And
we don't know how those combinations
are going to play out," says Louis Myers,
a biotech specialist at Fish & Richardson,
a law firm.

Before bookmarking this page in your
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The URL for this page is:
csmonitor.com

For further information:

Campaign for Food Safety
Campaigners arrested at genetic
crop protest BBC
Genetically engineered food Safety
problems New Zealand Natural
Food Commission
Canadians unknowingly eat
genetically altered supercrops
Calgary Herald

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