[Posted on November 7, 2007 - 1:29 PM]
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There are more and more signs that plant biotechnology has finally found its niche. Companies that have bumped along for years developing gene traits are seeing a resurgence in funding and forming corporate partnerships based on work with biomass crops for alternative transportation fuels.Most of the high-profile companies in this field, such as Ceres Inc., Targeted Growth Inc. and Mendel Biotechnology Inc., that have announced new funding deals have previously been engaged in developing gene traits for row crops that primarily have been used in animal feed. The latest to announce a major shift to biofuel research is Codexis Inc., which will extend its partnership with Royal Dutch Shell plc for five years, based largely on a program to expand research from plant biology development of generic drug ingredients to encompass next-generation biofuels.
"The application of our technology beyond its obvious use in pharmaceutical manufacture is extremely encouraging," said Codexis CEO Alan Shaw in a statement explaining the move. "But outside our doors, we are seeing a rapid rise in interdisciplinary thinking throughout the entire biotechnology industry."
While agricultural biotech companies in feed crops has always focused on yield, Codexis is aiming a little higher on the food chain, developing traits for optimized enzymes used in chemical interactions. The company has already had success in developing biocatalysts for drugs, and it is currently producing the main ingredient for a generic form of popular anti-cholesterol drug Lipitor at a cost it claims is 60% lower than previous production processes.
That kind of success allowed Codexis to raise $37 million in a Series D venture round last year from Bio*One Capital Pte. Ltd., CMEA, Pequot Ventures, Chevron Technology Ventures and Maxygen Inc., bringing total investment in the company to $72 million. Codexis' new deal will bring in an undisclosed amount of new equity capital from Shell, focused on bulking up its activity in biofuels. - Clifford Carlsen
See Sept. 27 story from The Deal.com
See Feb. 8 story from The Deal.com
See Oct. 15 story from The Deal.com
See March 27 story from The Deal newsweekly
