Dow spins out Pfenex as independent unit for recombinant proteins

The USA's Dow Chemical Co has formed a new independent company that will be known as Pfenex Inc through its Dow Venture Capital group. The new company, headquartered in San Diego, California, is based on human health applications of a Dow-developed technology called Pfenex Expression Technology, a robust Pseudomonas fluorescens-based platform that uses high throughput, parallel processing methodologies for optimized protein production, that has been utilized by likes of global drug giant Pfizer.

The action is consistent with the firm's strategy of active portfolio management, said Dow. Due to the long-term promise of the technology, Dow will hold a significant minority stake in Pfenex along with Signet Healthcare Partners, an experienced venture capital investor focused on the healthcare sector. Financial terms are not being disclosed

Pfenex is a biotechnology company specializing in strain engineering and protein production, helping to accelerate the development of new biopharmaceutical therapeutics and vaccines that address critical human health issues from infectious diseases to oncology. Using a high throughput parallel processing, robotically enabled approach based on the bacterium Pseudomonas fluorescens, the platform produces high quality protein for discovery, research, development and commercial use.

'We are very pleased to help establish Pfenex as an independent company that will accelerate further development of this valuable technology and help bring solutions to human health needs,' said Heinz Haller, Dow executive vice president, Performance Systems. 'As we are actively managing Dow's business portfolio, we also are maximizing value by applying the experience of Dow Venture Capital and its model for growing companies with novel and game-changing technologies that have the potential for significant equity value,' he added.

Dow's contribution to Pfenex includes Pfenex Expression Technology for human health applications, protein production assets, customer contracts and lists, process technology, trademarks, certain intellectual property and around 20 experienced employees.

Ken Van Heel, global director, Dow Venture Capital, noted: 'Dow has invested in this business over the past five years to the point that the team, technology and initial commercial success provide the basis for an independent company with the potential for significant growth in this new independent business model.'