PRAIRIE PLANTS SEEKS NEW MARKETS

Brent Zettl's company has received national publicity -- some good and some
bad -- in the past two years because of a $5.75-million, five-year contract
to grow research marijuana for Health Canada.

But in the future, Zettl would rather have Prairie Plant Systems Inc. of
Saskatoon known for being one of the leaders in the field of plant-made
pharmaceuticals (PMPs), where plants are altered through genetic
manipulation or breeding to grow drugs cheaper than they can be synthesized
in a laboratory.

Controversy arose in the past year over the fact that some of the 244
kilograms of marijuana grown last year by Prairie Plants under controlled
conditions in a vacant mine tunnel in Flin Flon had concentrations of THC
- -- the active ingredient in pot -- of 20 to 25 per cent.

The federal government had threatened shutting down the Flin Flon grow room
unless a way could be found to get pot plants growing with THC levels of
about 15 per cent.

That is the level Health Canada says would be suitable for human trials on
the value of medicinal marijuana. However, Zettl said no THC level was
targeted when the contract was let.

Zettl has been reluctant to comment in the past on the marijuana contract
other than to say the resulting high level of THC was mainly the result of
growing marijuana seeds seized and retained from illegal pot grow operations.

But at a news conference Monday, where Zettl talked about why he is heading
to Washington with the Team Saskatchewan biotech cluster, he said the
experience with the federal pot contract has strengthened his company's
argument that it has the technical expertise to be involved in plant-made
pharmaceuticals.

"The fact that we are also working with government agencies demonstrates
already a proven track record of taking a botanical and converting it to a
pharmaceutical," he said. "It has a lot of parallels with the PMP industry."

Zettl's secure Flin Flon grow chamber has not been shut down and in fact
there is currently a crop of marijuana growing that he says will meet the
government's THC requirements for running clinical trials.

"We're still producing from a line (of marijuana seeds) we recommended. We
can bring it to any concentration the researchers want through blending,"
Zettl explained. "It isn't rocket science.

"We've blazed a trail a little with the regulators. If (other companies)
ask about the kerfuffle, it's sort of like Goldilocks and the three bears.
Before it was too weak, now it's too strong, but by the time they get it,
it will be just right."

Zettl said the uneven experience with growing pot shouldn't stop major drug
companies from considering Prairie Plant Systems as the place to test-grow
PMPs.

"The good news about the situation we're in is that most people who are in
this business understand the challenges associated with producing a
pharmaceutical, especially the first time through," he said.

The company's experience in getting regulatory approvals and security
approvals are part of the "brass tacks" of making a contract happen, Zettl
said.

"We can leverage from that, because they can see we've done our job well.
They know the federal government hasn't been able to manage all the
scenarios well, but we've actually done our job that helps manage their
risk and gives the potential for going forward."

Currently, Prairie Plants has a small number of contracts to test PMPs for
pharmaceutical companies. Zettl is heading to Washington this month because
of the opportunity to meet high-ranking pharmaceutical officials from a
large number of companies.

"There is about a $40-billion market opening up for plant-made
pharmaceuticals," he said. "The goal is to get a piece of that.

"Right now, it probably represents five to 10 per cent of our business. We
have had what I call "toe-in-the-water" contracts, not only to test the
facilities we have, but our people and the quality control and the
discipline we have.

"It's a small percentage of the company right now, but that's going to be a
major focus of the company."