WASHINGTON -- Mycogen Corp. received approval on Thursdayfrom the Environmental Protection Agency to sell twogenetically engineered biological pesticides, M-TRAK and MVPBioinsecticide, that combat beetles and caterpillar pests.

The approval, the first EPA authorization of a geneticallyengineered pesticide, requires Mycogen to conduct an extensivemonitoring program over the next six months. The San Diegocompany was granted permission for test production untilMarch 1, 1992, and expects to receive approval for fullcommercial production after that date. The company said itwould be able to produce commercial volumes of the productsduring the initial period.

M-TRAK kills Colorado potato beetles on potatoes, tomatoesand eggplants. MVP eradicates caterpillars on vegetable crops.North American farmers pay $40 million per year on chemicalpesticides to control the potato beetles and another $120million to protect vegetables from caterpillars.

M-TRAK is a genetically engineered version of an older naturalMycogen product, M-One, which was a commercial failurebecause it degraded too quickly. M-TRAK and MVP use a newerMycogen delivery system that protects the biotoxins fromdegradation, said Albert Kern, executive vice president ofcommercial development.

Mycogen's products are based on genetically engineeredBacillus thuringiensis, or Bt, a natural pesticide used fordecades to control caterpillars. Mycogen said it is developinganother product, for the beet army worm.

M-TRAK and MVP will compete with Bt-based Foil and Cutlass,sold by Ecogen Inc. The Langhorne, Pa., company was granted aU.S. patent on June 18 for use of Foil against the Coloradopotato beetle and corn borers on potato crops. The EPAapproved Foil, a naturally derived product, in 1990.

MVP will face off against Ecogen's Cutlass. John Davies,Ecogen chairman and chief executive, said that EPA approval ofCutlas comes too late for this year's potato crop, "but theywill compete in the Southern and Southwestern vegetablemarkets."

Mycogen and Ecogen should capture 20 percent to 25 percent ofthe markets for Colorado potato beetle and vegetablecaterpillar pesticides within a few years, said Davies. Mycogenstock (NASDAQ:MYCO) closed unchanged at $15.

-- Steve Usdin BioWorld Washington Bureau

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