By Mary Welch

Argonex Inc. and a $6.5 billion chemical specialty firm, Rohm and Haas Co., formed a joint venture called RHeoGene LLC to develop tools for use in human gene therapy applications.

The joint venture, which will be housed at the Charlottesville, Va., headquarters of Argonex, will bring together the proprietary gene-switching technology of Rohm and Haas with Argonex's immunotherapeutic product discovery technology.

"To the uninitiated this joint venture may not be obvious," said Aris Persidis, vice president of business development for Argonex. "But there is a mutual synergy. From our perspective they have a unique technology that is applicable to the human health field. I think Rohm and Haas wants to develop opportunities from its technology and catch the wonderful growing wave that's happening in gene therapy."

Philadelphia-based Rohm and Haas is one of the world's top three specialty chemical companies. Earlier this year, it acquired Morton International, the makers of Morton Salt, for $4.9 billion. Its chemical products are found in food packaging, computer circuit boards, car finishes and furniture coatings.

Privately held Argonex develops platforms for protein and peptide discovery and analysis. Its lead technology, DIRECT, combines advanced mass spectrometry with immunology to enable the rapid identification of antigens that specifically trigger human cytotoxic T-cell responses against diseased cells.

"We are a specialty chemical company but Rohm and Haas has a biotechnology group to develop competency in biotechnology in order to understand biotechnology and how the science is evolving," said Lorraine Keller, technical marketing manager, biotechnology, for Rohm and Haas. "The biotechnology department resides in the [agriculture] business and serves the interests of that department as well as the corporation as a whole."

The two companies had been in discussions for nine months before consummating the deal. Rohm and Haas owns 60 percent of the new entity, Argonex 40 percent. No other financial details were disclosed.

RHeoGene will focus on the tools necessary to deliver genes of interest and control their expression, rather than identifying and validating new genes for use in gene therapies.

"Of course we will be looking at partnering our work," Persidis said. "Who isn't?"

Although gene therapy methods could be applicable in a number of diseases in which there is a definite link between a defective gene and a disease, RHeoGene initially will only focus on two undisclosed disease indications, he said. Among those disease possibilities are cancer, infectious diseases, autoimmune, cardiovascular, neurodegenerative and metabolic disorders.

Gene switching (or ligand-induced gene expression) is a naturally occurring process by which proteins - such as hormones, enzymes and receptors - are controlled by the body so they are produced only at appropriate times and places. RHeoGene will use its technology to create gene therapy tools. A gene tool consists of the DNA components required to deliver the therapeutic gene to the correct location in the patient's body as well as components that guarantee the timing and dosage are correct to treat the disease.

RHeoGene will develop proprietary ligand chemistry and ecdysone-based receptor switches that are contributed by Rohm and Haas, which has been working on ligand chemistry and ecdysone receptor biology for more than 15 years. The company has developed a novel class of ligand that binds with high-specificity and high-affinity ecdysone receptors.

"We've had this technology and we're looking to see where it can be used," Keller said. "It's a strong and broad technology base. We believe that with Argonex and its entrepreneurial experience and familiarity in the human health field that we will see a new use of this technology from this joint venture."

As a practical matter, Rohm and Haas will contribute its ligand chemistry and ecdysone-based receptor switch technology. Argonex will add its immunotherapeutic expertise, business development, day-to-day management, laboratory infrastructure and scientific and management personnel. The company expects to hire about 20 people in the next two years. Persidis is the managing director and Mohan Philip, former director of vector development at Rhone-Poulenc Rorer Inc., of Collegeville, Pa., will serve as director of research and chief scientific officer.

"RHeoGene is a joint research company but Rohm and Haas has a powerhouse of technology sitting there that can be a significant force to move gene switching forward," Persidis said. "There will be enough to keep us off the streets and keep us busy for a while."