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Chemistry & Biology
Innovations
Pichia Power: India’s Biotech Industry Puts
Unconventional Yeast to Work
Chandra Shekhar
DOI 10.1016/j.chembiol.2008.03.002
As a platform for making recombinant pro-
teins, E. coli is hard to beat. This universal
gut bacterium grows quickly and eagerly,
and—with simple genetic tinkering—will
make virtually any foreign protein. How-
ever, E. coli, a prokaryote, can’t handle
posttranslational modifications; the pro-
teins it makes are often misfolded and in-
soluble, requiring expensive processing
steps to make them usable. Mammalian
cells, in contrast, fold and modify proteins
with ease but are much harder to culture.
One organism that potentially combines
the advantages of bacterial and mamma-
lian expression systems is Pichia pastoris,
a harmless species of yeast that feeds on
methanol. Being a single-celled organism,
it is easy to grow and manipulate, while as
a eukaryote, it can perform complex ma-
nipulations on proteins. These attributes
havemadeitamainstayoftherecombinant
protein industry in India. ‘‘Pichia gives high
yields of well-expressed proteins,’’ says
Harish Iyer, head of research and develop-
ment at Biocon, the first company to mar-
ket recombinant human insulin made using
Pichia. ‘‘It is a wonderful workhorse for us.’’
Pichia’s role in biotechnology dates
back to 1969 when researchers first
learned about the organism’s remarkable
ability to feed on methanol. Since at that
time methanol could be made cheaply
from waste natural gas, oil company re-
searchers were intrigued by the idea of
using this yeast to make protein-rich ani-
mal feed. They developed the technology
to grow the organism to cell densities as
high as 130 g/l. However, the oil crisis of
the 1970s, coupled with a fall in price of
soybeans—a competing source of animal
feed protein—killed this effort.
Researchers then turned their attention
to using this prolific yeast as an expres-
sion system for foreign genes. In the early
1980s, molecular biologists at the Salk In-
stitute Biotechnology/Industrial Associ-
ate, Inc., (SIBIA), in La Jolla, CA, isolated
the principal gene for the yeast’s alcohol
oxidase promoter, which is highly effec-
tive at controlling the expression of for-
eign genes. The team went on to develop
vectors, strains, and tools for genetic ma-
nipulation of the organism. The combina-
tion of a strong promoter and very high
cell densities ‘‘resulted in strikingly high
levels of foreign proteins,’’ recalls James
Cregg, who led the SIBIA team. One of
the team’s first achievements was cloning
the surface antigen of the hepatitis B virus
(HBsAg), a process that was later re-
peated by several Indian companies with
great commercial success. In contrast,
when HBsAg is expressed in E.coli, ‘‘you
just get ‘rocks’ or inclusion bodies of mis-
folded protein that are apparently not pro-
tective against the virus,’’ says Cregg.
Since then, researchers worldwide
have used Pichia to make recombinant
versions of several dozen proteins—bac-
terial, fungal, viral, plant, and human—
with expression levels comparable to
E.coli and higher than tissue cultures.
‘‘Pichia doesn’t have toxins like E.coli
does, or viruses like tissue cultures do,’’
says Cregg. ‘‘It is an excellent expression
system, perhaps one of the best.’’
Despite its advantages, Pichia has not
been widely used in the United States
and Europe to make human therapeutics.
(One of the very few Pichia-derived inject-
able biologics approved for use in the U.S.
is a recombinant human serum albumin
made by Japan-based Mitsubishi Pharma
Corporation.) This is partly because gly-
cosylation patterns in yeast cells tend to
differ from their mammalian counterparts;
studies suggest that glycoproteins made
using fungal systems might trigger ad-
verse immune responses when injected
into mammals. More importantly, many
elements of the Pichia expression system
are protected by patents by Tucson, AZ,
based Research Corporation Technolo-
gies. ‘‘Because of patent concerns, only
a handful of U.S. companies have worked
with Pichia,’’ says Cregg. In contrast, sev-
eral Indian biotechnology companies
have embraced this yeast as a platform
for making recombinant products, en-
couraged by intellectual property regula-
tions that until recently were less stringent
than those in the U.S. and Europe.
In 1997, Hyderabad-based Shantha
Biotech announced India’s first Pichia-
derived product, a hepatitis B vaccine
based on a recombinant form of the
HBsAg antigen. Earlier work by Cregg
and other researchers provided guide-
lines for doing this, but transitioning the
technology from the lab to the factory
required a major effort. ‘‘We initially strug-
gled to get good levels of expression,’’
recalls Revathi Chaganti, then the sole
molecular biologist at the company. The
protein tended to associate with the
membrane, and it was tricky to extract it
without disturbing its structure. ‘‘Even
now we recover only about 30% of it,’’
she says. Most of the published work
dealt with shake-flask cultures; scaling
the system to industrial-size fermentors
was a challenge. ‘‘We started with a 10 L
fermentor and increased it by stages to
750 L,’’ says Chaganti. From such humble
beginnings, the company now makes
more than 100 million units of the vaccine
each year. It sells the product in more
than 50 countries and provides 40% of
UNICEF’s supply. Prior to Shantha’s ef-
fort, the multinational GlaxoSmithKline
was the sole provider of this vaccine in
India, charging more than $10 per dose;
Shanta’s entry into the market caused
its price to plunge, and it now sells at
15 cents a dose.
One organism that potentially combines the advantages of bacte-
rial and mammalian expression systems is Pichia pastoris,
a harmless species of yeast that feeds on methanol.
Chemistry & Biology 15, March 2008 ª2008 Elsevier Ltd All rights reserved 201

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During the past few years, the market
for the hepatitis B vaccine in India has
grown fiercely competitive, as several
other companies have entered the fray.
One of the contenders is Indian Immuno-
logicals, a veterinary biologics manufac-
turer for whom this vaccine was the first
foray into recombinant DNA technology
as well as the Pichia expression system.
‘‘We had 25 years of experience with
mammalian cells,’’ says V. Srinivasan, di-
rector of research and development at the
Hyderabad-based company. ‘‘Compared
to that, Pichia was a much easier system
to work with.’’ Downstream processing,
however, required more effort; it was par-
ticularly challenging to attain purity levels
of 97% and above, according to Sriniva-
san. ‘‘It is not the expression system alone
that matters–you have to couple it with
powerful downstream processing,’’ agrees
Krishna Ella, chairman and managing
director of another hepatitis B vaccine
manufacturer,
Bharat
Biotech,
who
switched to Pichia after initially working
with a Saccharomyces platform. Yet an-
other platform, Hansenula polymorpha, a
methylotrophic yeast similar to P. pastoris,
is used by Mumbai-based Wockhardt for
making its version of the vaccine.
In 2000, Biocon, India’s leading bio-
technology company, unleashed Pichia
on insulin, another hot itemin the Indian bi-
ologics market. ‘‘It was a singularly chal-
lenging project,’’ recalls Iyer, who led the
company’s effort. ‘‘Here we were, a band
of 10–20 people, competing with multina-
tionals like Eli Lilly and Novo Nordisk, with
their hundreds of researchers.’’ As with
HBsAg, expressing the protein was the
easy part. ‘‘There wasn’t much difficulty
in transforming the microbe or getting
high yield,’’ says Iyer. The challenge
came from the whole series of activities
required to commercialize the product:
extraction, purification, clinical studies,
regulatory approval, etc. It took the better
part of four years to complete these
stages. ‘‘And then one day we had our first
formulation, a vial with a label that had
Biocon’s name on it,’’ says Iyer. ‘‘It was
a tremendously rewarding moment.’’ The
product, which was released in 2004, is
now registered in around 40 countries
and sells millions of units each year.
Indian manufacturers cite several rea-
sons for choosing Pichia over other plat-
forms. For instance, Chaganti observes
that Pichia-derived proteins, in contrast
to those made using E.coli, have intact di-
sulfide bonds and don’t need expensive
refolding stages. ‘‘All you need to do is
to break open the association with the
membrane, put it on a column, and purify
it,’’ she says. However, Chaganti and
others also noted some shortcomings
with Pichia. She points out that some
proteins give poor yields unless their
gene is optimized to eliminate rare co-
dons. Further, during secretion, glycopro-
teins such as granulocyte-macrophage
colony stimulating factor (GM-CSF) get
over-glycosylated and may get N-termi-
nal amino acids cleaved off. ‘‘Because of
this we could not use Pichia for producing
GM-CSF, though the expression levels
were very good,’’ says Chaganti. Pichia’s
ability to feed on cheap methanol is a ma-
jor selling point; however, even here there
is room for improvement, says Iyer. He
points out that much of the methanol con-
sumed by the organism is burnt to pro-
duce heat instead of the ‘‘useful work’’
of making protein. ‘‘How to shunt the pro-
cess away from heat into work is a major
unsolved problem with Pichia,’’ says
Iyer. ‘‘We need to do some fundamental
work here.’’
Until recently, Indian companies were
more interested in reproducing and
adapting results from the literature than
in performing fundamental research.
However, with recent legislation that
brings Indian patent laws in compliance
with World Trade Organization (WTO)
and Trade-Related Aspects of Intellectual
Property Rights (TRIPS) requirements, the
situation is changing. Shantha Biotech,
for instance, is working for the develop-
ment of a novel Pichia-based expression
system in collaboration with the Centre
for Cellular and Molecular Biology,
a research institute in Hyderabad. Other
companies and research institutes are en-
gaged in similar efforts. ‘‘Our initial effort
was one of indigenization rather than in-
novation,’’ says biochemist P.N. Rangar-
ajan of the Indian Institute of Science in
Bangalore, who developed the Pichia
strain used by Indian Immunologicals for
their hepatitis B vaccine. ‘‘But now we
are doing more basic research and are
hoping to come up with innovative things
in Pichia.’’ He points out that despite
Pichia’s wide use in biotechnology,
many aspects of the organism—such as
how it attains such high cell densities or
how methanol turns on the expression of
its alcohol oxidase promoter—remain
a mystery. To investigate these issues fur-
ther, Rangarajan has launched a new re-
search program at the Institute. ‘‘We are
getting very exciting results,’’ he says.
Chandra Shekhar is a science writer based in
Princeton, NJ.
Chemistry & Biology
Innovations
202 Chemistry & Biology 15, March 2008 ª2008 Elsevier Ltd All rights reserved