The strategic partnership agreement between SemBioSys Genetics Inc. and global agrosciences company DowElanco and will allow the Calgary company to scale up its operation toward commercial production.

Richard Elenko, SemBioSys’ Chairman of the Board, said, "As a result of the DowElanco investment, SemBioSys has initiated a program to scale our technology to commercial levels. We are currently developing a pilot facility here in Calgary and hope to have commercial production of our first product before the year 2000."

DowElanco has invested more than $4 million to date in SemBioSys and yesterday announced it intends to invest another $17 million over the next five years. That would see SemBioSys grow to 150 high end research, production and administration positions with the potential to generate more than $160 million in annual sales by 2005.

The company created from technology developed at The University of Calgary produces
pharmaceutical and industrial proteins by "growing" them inside oil seeds of plants. The breakthrough technology was the discovery of Dr. Maurice Moloney who is now the President of SemBioSys.

"The DowElanco investment and strategic alliance is our green light to move to the next stage of
commercial development," Dr. Moloney said. "We have production agreements with industry partners in place now and we will be seeking additional partnerships."

Dr. Moloney explained that oilseeds such as canola, flax and sunflower, have oil body proteins called oleosins. Any protein, such as an industrial enzyme or pharmaceutical component, attached to the oleosins grows with the plant. Because oleosins associate themselves with the oil phase of the seed, extraction with the introduced protein attached is a simple process. Dr. Moloney calls his production process ‘molecular farming.’

In addition to pharmaceuticals and industrial enzymes, SemBioSys has targeted other proteins such as animal feed supplements for production.

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