Clone sheep company to cull

Following Bayer's withdrawal from joint drug developments with Scottish cloning specialists PPL, the company's New Zealand offshoot is to cull its flock of transgenic sheep, and reduce staff numbers.

The company, which soared to fame after successfully cloning Dolly the sheep, has been hit hard by Bayer's retraction from the deal. Reports say the German giant has put the alpha-1 antitrypsin (AAT) lung therapeutic deal on ice for several years, with the result that PPL is to cut 90 per cent of its workforce, and cull its flocks of cloned sheep.

Although no comment was available from the New Zealand subsidiary, with management described as "having time off", it is understood that the latest round of sheep culling there is under way already.

NZ regulatory body ERMA reported the culling was "particularly [aimed at]... reducing the number of older sheep" from the 4000-strong flock, but it seems unlikely the NZ operation will be able to sustain the maintenance of the gene-spliced operation in the light of the Bayer pull-out.

Reports indicate that PPL's parlous financial situation is such that it has recruited accounting company KPMG to help sort out its future.

In addition, ERMA has reported that it will increase inspections on sheep from the existing three-monthly basis to a weekly basis, possibly to check none of the 4000 transgenic animals are either stolen or hidden.

Bas Walker, chief executive of ERMA New Zealand, said the relationship with PPL was still good, however. "We are maintaining close contact with them as events unfold both in New Zealand and in the UK," he said.