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Intrexon acquires maker of the GMO Arctic apple

 

By KEVIN WALKER

Michigan Correspondent

 

SUMMERLAND, British Columbia — Okanagan Specialty Fruits (OSF), the manufacturer of the first genetically modified (GMO, or GM) apple, announced last week Intrexon Corp. had finished the process of acquiring it. The Arctic apple received regulatory approval from USDA and Canadian authorities earlier this year.

"Arctic apples’ non-browning trait creates a wide array of benefits that offer value to the entire supply chain, especially consumers," said OSF President Neal Carter. "Arctic apples have been planted for 12 years, and have completed review processes with the USDA, FDA, CFIA and Health Canada, who concluded they are as safe and nutritious as traditional apple varieties.

"We look forward to bringing better versions of consumers’ favorite fruits to their grocery stores and kitchens."

OSF believes the non-browning trait of the Arctic apple will be especially beneficial to institutions such as schools, which use fresh-cut apples. OSF’s statement says the Arctic apple uses no flavor-altering chemical or antioxidant additives.

The company is planning to bring the apple to market gradually, beginning late in 2016. The Arctic Golden and Arctic Granny varieties have been approved so far. The company is planning to submit two more Arctic varieties to regulators for their approval, the Arctic Fuji and Arctic Gala.

The company also has longer-term plans to also develop GMO peaches, cherries and pears, though it’s not clear how concrete those plans are at this time.

"We are enthusiastic for the potential of the Arctic apple and the future products that will build on the OSF platform which ultimately will create novel foods that promote health and delight the consumer," said Thomas Kasser, senior vice president and head of Intrexon’s food segment.

"Powering the bioindustrial revolution in our food sector means providing an ever-growing population with easier access to healthy high-quality foods, so we look forward to seeing the OSF products, along with our other programs in plants and animals, advancing sustainable biobased solutions that improve the efficiency of food production while increasing consumer appeal and satisfaction."

Intrexon’s line of business involves synthetic biology, which refers to the use of "unnatural molecules" to mimic natural molecules with the goal of creating artificial life. It also refers to the manipulation of natural molecules to get them to behave in unnatural ways, according to information on the website http://syntheticbiology.org

Synthetic biology has produced diagnostic tools for diseases such as HIV and hepatitis viruses, as well as devices from biomolecular parts that do other "useful things."

Intrexon has an agricultural biotech division (ABD) that is focused on applying the company’s core technology to do innovative things in agriculture, to improve crop yields through complex trait engineering and "gene expression optimization," the company states on its corporate website. ABD uses the company’s library of plant specific genetic components for what the company calls "customizable DNA assembly" and trait construction.

"ABD’s breadth of expertise in model plant systems, such as Arabidopsis, rice and tobacco, facilitates proof of concept testing and validation prior to product development," the company stated.

The company is also interested in improved resistance to pests. ABD is designing a strategy to combat the soy cyst nematode, for example, a pest which threatens soybean crops and which causes significant crop losses.

The companies first announced Intrexon’s intention to acquire OSF in February. Intrexon is a publicly traded company on the New York Stock Exchange under the ticker symbol XON. It was first traded publicly in 2013 at $16 a share. As of press time it was trading at around $45 a share.

Apple’s adversaries

The Arctic apple has its opponents. The Canadian Biotechnology Action Network (CBAN), an assemblage of groups "campaigning for food sovereignty and environmental justice," denounced its country’s decision to approve the fruit.

"Our government is not listening to Canadians," said Lucy Sharratt of CBAN, back in March. "Fruit growers had asked the government not to approve this GM apple and polls show that a majority of consumers don’t want it on grocery store shelves."

"The GM apple will mislead consumers because it will look fresh even when it’s not," said Teresa Lynne of the CBAN member group Society for a GE Free BC. "The GM apple threatens the reputation of apples as fresh, wholesome food. We don’t need it."

CBAN stated it knows growers who are concerned the Arctic apple will negatively affect the entire market for apples.

"Growers are right to worry that without clear labeling many consumers will buy fewer apples just to avoid this GM apple," said Thibault Rehn of the Quebec Network Vigilance OGM, also a CBAN member group. "We need our grocery stores to step in to protect the consumer interest and the apple industry by keeping their doors closed to this GM apple."

4/29/2015