Genetically modified Aussie goats set for China

Genetically modified Aussie goats set for China

SYDNEY, Australia (Reuters): An Australian research institute
and a Chinese drug company plan to genetically modify goat
embryos with human genes in order to produce the protein albumin,
used for the treatment of shock.

A base group of up to 600 modified goats will be developed by
the state-owned South Australian Research and Development
Institute (SARDI) and exported for a breeding program at China's
Youlitai Biotechnology Development Institute in Beijing.

SARDI executive director Rob Lewis said this week the gene
modification process would cause albumin, which is normally
produced by humans, to develop in goats milk.

The Chinese group will extract the albumin, and use it in the
manufacture of pharmaceuticals.

SARDI was also the senior partner in the creation earlier this
year of Matilda, a cloned merino sheep, as part of a scheme to
produce multiple copies of rare sheep with outstanding genes.

Lewis said work began earlier this year, but because of its
experimental nature, the institute expected a success rate of
only about 10 percent.

Albumin is currently derived through human blood transfusions
supplied by donors. However, the prospect of extracting the
protein from the milk was seen to be more acceptable by the
Chinese group, he told Reuters.

"We were advised by our (partners) that there are cultural
reasons why the Chinese would use serum rather than blood
products for a whole range of pharmaceutical uses," he said.

Concerns

Australian environmental group GeneEthics has raised concerns
about the regulation of the project, with its director Bob Phelps
saying genetic manipulation of goats was not clearly covered
under Australia's voluntary Genetic Manipulation Advisory
Committee (GMAC).

And it would remain unregulated under the country's Gene
Technology Bill 2000, due before Parliament in October. The Bill
is currently being assessed by the Senate Community Affairs
Reference Committee.

"These animals could therefore be developed without any public
knowledge," Phelps said.

However, the Interim Office of Gene Technology Regulator
(IOGTR), the government body in charge of Australia's emerging
gene industry, said the work was covered by GMAC guidelines as an
experimental project, and would also be covered by the new Act.

IOGTR said that in order to protect the possible patents
derived in the work the actual process would not be independently
monitored.

"These are university research projects in contained
laboratories and because of that there's potential patent
considerations further down the line," an IOGTR scientist, who
declined to be identified, said.

Lewis said SARDI was concerned about tipping off potential
competitors about the research, but believed the deal with China
would raise Australia's profile on innovative scientific
research.

"We're about promoting Australia's biotechnology industry
world wide, and this is a clear demonstration that Australia has
world-class capability in this industry," he said.