Celgene Corp. has successfully demonstrated the ability of itsbioreactor system to reduce emissions of the carcinogenmethylene chloride, and the company is discussing purchase byGeneral Electric of one or more commercial-grade bioreactorunits, to be installed in the first quarter of 1992.

Celgene is just starting commercialization of its bioreactorprocess to break down methylene chloride into water, carbondioxide and salt, John Ufheil, company president and chiefexecutive officer, told BioWorld.

The demonstration of a pilot bioreactor at GE's plastics plantin Mount Vernon, Ind., was "the first in situ validation of ourtechnology," Ufheil said. With the biological action of Celgene'snaturally occurring microorganisms, GE was able to reduce itsemission of methylene chloride to levels below federalguidelines set by the Environmental Protection Agency.

Depending on the size of GE's reactors, Celgene will charge an"annual throughput fee" of $300,000 to $500,000 per reactor,Ufheil said.

The Warren, N.J., biotech company is working with othercompanies that emit the chemical, which is used in plastics,paint removers, pharmaceuticals and photographic film. Ufheilsaid that in the United States alone, 1,500 plants emitmethylene chloride in their manufacturing processes.

Celgene stock (NASDAQ:CELG) closed at $16.75, up $1.25, onWednesday. -- Roberta Friedman, Ph.D.

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