Yulex Corporation Leads in Developing Medical Markets for Plants: Opportunities for Collaboration with New Crops is Growing

Mar 28, 2008 - By Pete Nelson, Special to BiobasedNews.com - Link to Story

Submitted by Mr. Pete Nelson

In last month’s column, I began a discussion of “new generation” biotechnology companies and the (unique/interesting/unusual) partnerships that are being formed to develop biobased products. Many of these companies involve the use of new crops and the partnerships are formed to exploit the potential of those crops into many new markets.

Photo courtesy Yulex.com

One of these innovative companies is Yulex Corporation based in Maricopa, Arizona (www.yulex.com ). Yulex is commercializing a crop called guayule under a licensing agreement with the United States Department of Agriculture's Agricultural Research Service (USDA-ARS). Guayule is a versatile desert plant that has become a commercial source of biobased rubber latex. The crop can also be used as a cellulosic feedstock for bioethanol and other alternative energy products. The commercialization processes have been developed by noted scientist Katrina Cornish, Ph.D. who, prior to joining Yulex, worked with USDA for over 15 years developing commercial applications for the crop. Since 1997, Yulex has emerged as the market innovator producing medical grade latex for medical and consumer products. Yulex is currently marketing its high-performing natural rubber latex material to medical device manufacturers internationally in order to fulfill the demand for its products. Seventy-three percent of children with spina bifida suffer from Type I latex allergy and need alternative products. Furthermore, six percent of the general population and ten percent of healthcare workers have symptoms of latex allergy.

Recently, the company signed an agreement with the USDA-ARS and Mendel Biotechnology to develop and field-test proprietary guayule plants. They will develop plants with enhanced natural rubber latex yields and increased biomass. The company also is expanding its breeding program

"Launching this program with Mendel and the Agricultural Research Service will greatly accelerate the achievement of our long term goals which include the ability to provide an economical rubber product on a global basis while providing a regional solution for ethanol production in the Southwest United States," says Jeffrey Martin, CEO and President of Yulex Corporation. "We expect to see a vast improvement in guayule rubber yields which will allow guayule production fields to produce significantly more rubber per acre than rubber plantations in Southeast Asia."

"Using our expertise in plant regulatory genes and proprietary technology in transferring these genes, we are optimistic that we can create improved varieties of guayule that will make twice as much rubber," says Robert A. Creelman, Ph.D., senior scientist at Mendel Biotechnology and principle investigator on the project. "Since guayule grows in the United States, these improved varieties will create opportunities for American farmers, reduce our dependence on imported natural latex and rubber, and decrease our use of synthetic latex and rubber."

The goal of collaboration is to increase the amount of latex, rubber, and biomass the plant produces. Over the next three years, Yulex Corporation, Mendel Biotechnology, and USDA scientists will test the new guayule transgenic lines and enhanced rubber biosynthesis genes for yield improvements as well as stress tolerance. Yulex will conduct latex extraction and chemical tests, the USDA-ARS will perform agronomic, chemical and biochemical tests, and Mendel will carry out molecular tests on the new transgenic guayule plants.

This partnership is indicative of the interesting alliances being formed as companies try to add value to their business. Keep in mind that this is now the era of "unlikely partnerships" as evidenced by new ventures between Tyson and ConocoPhillips, and also between Chevron and Solazymes to name a few. As the opportunities unfold is is important for each of these companies, such as Yulex, to establish a position in the emerging bioeconomy for their intellectual property. A biotechnology company which owns traits and finds an outlet that is not part of the large multinationals, like Monsanto or Syngenta, is an ideal partner for these new crops companies. Dr. Cornish, Jeffrey Martin and the rest of the staff of Yulex are to be commended for building a company whose time has come.

In keeping with this discussion on new crops, BIO will be hosting a new crops panel discussion at the World Congress on Industrial Biotechnology in Chicago on Tuesday, April 29 at 4:30 p.m. The roundtable discussion of entrepreneurs actively developing new agricultural and forestry crops. This will be a guided discussion focusing on the needs of these companies who have a unique position in the emerging bioeconomy. The discussion will be guided by Randy Powell, Ph.D. of BioDimensions and Mike Karst of Entira. The discussion topics include the following:

• Specific hurdles involved in commercializing new crops that are different than the commodities.

• Opportunities to collaborate on public policy, lobbying and strategic planning.

• Discussions on sustainability and biodiversity.

• Legal issues involved in IP specifics to new crops.

• Ways to collaborate with the specialty chemicals, automotive and other sectors that may need to take advantage of specialized properties that are in various new crops but may not be in commodity crops such as unique fibers and fatty acid profiles.

• Ways to more efficiently interface with the research farms, innovative farmers, and regional networks of collaborating companies.

The session will be open to all attendees at the conference, but the guided discussion component will take place among those companies that are actively working towards commercializing new crops. A general Q&A will also be included. To register for this event and to see the schedule go to www.bio.org/worldcongress2008.

Pete Nelson is a principal in BioDimensions, LLC, a consultancy dedicated to helping companies producing plant-based products prosper. He can be reached by email at pnelson@biobased.org.

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