Setbacks for Biotech
By - Patricia Sellers

(FORTUNE Magazine) – When Advanced Genetic Sciences, a tiny biotechnology company, got the first Environmental Protection Agency permit to test genetically engineered bacteria outdoors, environmentalists protested that mutant bacteria might roam far from a test site and cause havoc (FORTUNE, February 17). The EPA took another look and discovered that the company had tested the bacteria, designed to retard frost on strawberries, on the roof of its Oakland, California, headquarters before getting permission. The EPA suspended the company's permit and levied the maximum $20,000 fine. Meanwhile, the Department of Agriculture drew fire for granting the first license for the sale of a genetically altered virus, a swine vaccine made by Biologics Corp. of Omaha, without telling the EPA.