Pharmaceutical Biotech Crop Company Closes Its Doors
Large Scale Biology Corporation, that led the way in trying to produce pharmaceuticals in genetically modified crops, ran out of money and shut its doors last week.
Compiled by staff
Published: Dec 27, 2005
Large Scale Biology Corporation of California has closed its doors following nearly two decades of working to produce pharmaceutical proteins in biotech crops as a faster and more inexpensive method than using biotech bacteria or animal cells.
The company used tobacco, a nonfood crop, as the main crop for its technology. Under the company's method, genes put into the tobacco plant could not be spread by pollen, a concern expressed by some opponents to the technology.
"Despite our efforts to generate revenue, obtain debt and equity funding, and sell or license selected assets at reasonable prices, our revenue and liquid assets are not sufficient to sustain our current operations," says Kevin Ryan, president and chief executive officer of the company.
"We are taking steps to preserve our assets for the benefit of our creditors and stockholders," Ryan adds.
Ronald Artale, chief operating officer and chief financial officer, says the company is talking to possible acquirers and to potential collaborators to raise money. "These discussions continue, and the Company is actively exploring alternatives."
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