Escagenetics Corp. announced Tuesday that it has used itstissue culture technology to produce the drug taxol at levelsgreater than those produced naturally in the bark and needlesof the Pacific yew tree.

Taxol has been shown in clinical trials to be effective intreating women with advanced breast and ovarian cancer. Thetwo cancers are responsible for more than 50,000 deaths inthe United States each year.

Taxol supplies have been limited by the scarcity of yew treesand the low concentration of the compound in the yew. It takesabout six 100-year-old trees to treat one patient annually.

Bristol-Myers Squibb Co. has been harvesting trees to providethe National Cancer Institute (NCI) with taxol for clinicaltrials. Semisynthetic versions of the drug have been producedby Rhone-Poulenc of France and by researchers at Florida StateUniversity. Attempts to produce synthetic versions have beenfoiled by the drug's complex structure.

Escagenetics of San Carlos, Calif., began working on taxol ninemonths ago and expects to scale up to commercial productionwithin the next two years. The company's phytoproductiontechnology uses fermentation processes that stimulate cellstaken from the yew tree's roots, leaves and stems to producelarge quantities of taxol. Escagenetics will look for acollaborator to conduct clinical trials.

Jerry Simmons, vice president of business development atEscagenetics, said the company has submitted a proposal tothe NCI and has talked to Bristol-Myers about developing itstaxol for medical uses.

Taxol is the first product the company has developed forpharmaceutical uses. Escagenetics has developed improvedcorn products, true potato seed and natural vanilla produceddirectly from plant cells.

Escagenetics stock (AMEX:ESN) closed at $6.50 on Tuesday, up$1.25. -- Karen Bernstein

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