Gene flock fate under review

A thousand sheep inserted with human genes will continue grazing on a South Waikato research farm until a review has been completed.

The sheep's future came into question late last week when Scottish biotechnology company PPL Therapeutics - which created Dolly the cloned sheep in 1997 - announced it was laying off 90 per cent of its staff in Edinburgh and New Zealand.

PPL's New Zealand general manager of operations, George Mitchell, yesterday refused to comment, but the company's London-based spokesman, Phillip Dennis, told the Herald an official decision on the sheep's fate was yet to be made.

He said consultants KPMG were conducting the review, and until it was completed the sheep would stay at the farm.

It was "highly likely" there would be a number of job losses in New Zealand, but he had no idea how many.

PPL employs 17 people at the Whakamaru research farm, southwest of Tokoroa.

Since last week's announcement, concern has been raised by lobby group GE Free New Zealand that the flock should be destroyed humanely and that material from the sheep should not damage the environment.

The group's spokesman, Jon Carapiet, said it was not good enough for them to be buried in offal pits, and he had concerns that incinerating the sheep, as required when the project was approved, could spread waste material.

Environmental Risk Management Authority chief executive Dr Bas Walker said there were strict controls on the trial, which ensured that no transgenic material left the trial site.

If animals were killed, it would be done on site, he said.

PPL's transgenic livestock field trial involves more than 4000 sheep - 1000 of which have inserted human genes - grazing in Waikato.

PPL was the first company in New Zealand to get permission for genetic research under the Hazardous Substances and New Organisms (HSNO) Act.

It began inserting the genes in 1997 with the aim of producing a human protein in the sheep's milk that could be used in medicines to treat cystic fibrosis and emphysema.

The company was planning to buy another property so it could begin milking cloned ewes this year.

Their milk was to be frozen and sent to Edinburgh for the removal of the protein recombinant alpha-1-antitrypsin (hAAT).

Recombinant proteins are human proteins produced outside the body, often by genetic modification.

PPL worked for three years with Bayer Biological Products, which was due to carry out clinical trials and marketing, with PPL developing and making the protein.

PPL has expressed "disappointment" that their German partner effectively pulled the plug on the scheme.

- NZPA, STAFF REPORTER