SYDNEY, Australia - Alchemia Pty Ltd. established a joint venture with Dow Chemical Inc. to make complex carbohydrates in commercial quantities for clinical use or biotechnology research.

Carbohydrates have previously proved difficult to produce in commercial quantities, a problem that has restricted their use in biotechnology.

Alchemia, of Brisbane, did not release any financial details of the deal, but it is thought to involve the Australian company contributing expertise and staff to the venture, while Dow contributes equipment as well as staff. Alchemia will receive an up-front payment plus milestone payments, as well as what amounts to half the profits.

The first molecule targeted for development and production is a trisaccharide that has several different clinical applications, including prevention of some forms of diarrhea as well as prevention of organ rejection in xenotransplantation.

Alchemia Managing Director Kevin Healey said his company has produced pilot quantities of the molecule and was in discussions with a customer over producing commercial quantities. The joint venture also is discussing the production of different molecules with other parties.

Each production order requires the joint venture to work out a different synthesis process in pilot form before starting mass production. But once in mass production the process can make tons of carbohydrates that were previously difficult to make.

Healey said that although there are a number of carbohydrate products on the market, they are usually extracted from natural sources. Other carbohydrates of considerable clinical interest have not been investigated or developed because they have been difficult to synthesize.

The Alchemia process includes a suite of chemical reagents, or building blocks, plus a series of methodologies that allow carbohydrates to be easily assembled.