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Cetus Corp. was founded a decade ago by a physician, Peter Farley, 40; a biochemist, Ronald Cape, 48; and Donald Glaser, 54, a Nobel prizewinning physicist. It uses not only gene splicing but also other genetic-engineering methods to modify microorganisms and produce such industrial chemicals as ethylene oxide (for making other chemicals and plastics), ethylene glycol (antifreeze) and alcohol. With that many different lines of interest, Cetus has had trouble concentrating its efforts. The company plans a $130-million public stock offering, possibly as soon as this week.
Biogen S.A., of Geneva, is a research-oriented firm founded in 1978 by a consortium of businessmen and scientists that included Weissmann and Harvard's Walter Gilbert, 48, a co-winner of the 1980 Nobel Prize in Chemistry. Last year it produced the first gene-spliced interferon-like human protein after sifting through 20,000 different genetic fragments. Schering-Plough and Inco (formerly International Nickel) are major investors.
Genex Corp. was started in 1977 by Molecular Biologist J. Leslie Glick, 41, to manufacture enzymes and other industrial chemicals through gene-splicing techniques. Genex, which is based in Bethesda, Md., also does testing and research jobs for other companies and now has a contract with Bristol-Myers to produce gene-spliced interferon. A major investor is Koppers Co., a chemical and engineering corporation.
The future of such firms is complicated further by the fact that few businessmen can really understand the science, and few scientists can comprehend the business mentality. Most of the new firms are tight-mouthed about their products, and the field is full of rumors that smack of the rivalry and intrigue in the early years of the railroad and automobile industries. There are stories of deposed corporate officers furtively arranging private stock sales, of disenchanted employees about to break away and start their own companies. Foreign banks lurk in the background, waving OPEC dollars. Major drug companies are now exploring the possibilities of the gene-splicing game.
Schering-Plough has bought a 16% interest in Biogen. Other drug companies are setting up their own teams. Gene splicing has also piqued the interest of oil companies that not only seek outlets for their cash but are also intrigued by the energy potential. Standard Oil of Indiana and Standard Oil of California together have a 50% stake in Cetus. Twenty percent of Genentech is owned by Lubrizol, an oil supply company. Even academic institutions like Harvard have considered backing gene-splicing firms. So high is investor interest that Molecular Biologist Norton Zinder of Rockefeller University says with a smile, "I could pick up the phone and in 20 minutes raise $25 million to start up a new company." One additional incentive for all potential investors: last June's 5-to-4 decision by the U.S. Supreme Court that man-made organisms may be patented.
Whatever gene splicing ultimately does in business, it has already created rich opportunities for biologists, long the poor cousins of science. Genentech Co-Founder Boyer has be come a millionaire many times over, at least on paper (see box). To create the organisms that