Escagenetics Corp. has received an $800,000 award from theNational Cancer Institute to investigate the feasibility ofscale-up and economic production of the cancer drug taxol byplant cell culture.

The three-year award also includes funds for the production inbioreactors of derivatives of taxol.

Escagenetics stock (AMEX:ESN) closed up $1 at $11 on Monday.

Taxol, which is derived from the bark and needles of thePacific yew tree, has been shown in clinical trials to beeffective in treating women with advanced breast and ovariancancer. The two cancers are responsible for more than 50,000U.S. deaths annually.

The drug works by interfering with the activity of cellmicrotubules, which play a central role in cell division and thetransport of molecules within cells. Taxol binds tubulin, theconstituent protein of microtubules, thereby preventingmicrotubules from carrying out their functions.

Supplies have been limited by traditional production methods,which require the bark of three to five mature trees to supplyenough taxol for one patient for one year.

Bristol-Myers Squibb Co. has been harvesting trees to providethe NCI with taxol for clinical trials. Semisynthetic versionsof the drug have been produced by Rhone-Poulenc of France andby researchers at Florida State University.

Escagenetics' phytoproduction technology uses fermentationprocesses that stimulate cells taken from the yew tree'sroots, leaves and stems to produce large quantities of taxol.

The San Carlos, Calif.-based company said it is discussing aresearch collaboration with Bristol-Myers to developalternatives to deriving taxol from yews. -- KB

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