Replies to post #3705 on GTC Biotherapeutics (fka GTCB)

[DewDiligence]

Re: Novozymes

Thanks for posting this informative write-up. A few comments:

>the company has also developed a number of animal-free recombinant versions of the widely used serum protein albumin for large-scale biomanufacturing.<

Increasing competition from recombinant albumin is one of the reasons GTC has effectively dropped its own albumin program. The overall supply is just too large for anyone to make a lot of money on albumin.

>The contamination risk from pathogens such as viruses or prions when using animal-derived ingredients, and the damage the BSE crisis caused some manufacturers, is pushing some companies towards animal-free alternatives in a bid to eliminate the threat.<

This is true, but the main fallout from this policy is IMO a preference for recombinant proteins vs plasma-derived proteins. Hence, I consider GTC a net beneficiary of this movement despite the fact that its proteins are derived from animals.

>Although firms opting for the animal-free [cell culture] ingredients will be paying for the added safety and productivity the products offer, the company was unable to disclose any specific pricing details.<

Price will be very important, of course. The most compelling long-term argument for GTC’s platform is an economic one. Regards, Dew