The Dow Chemical Company has formed a new independent company that will be known as Pfenex Inc. through its Dow Venture Capital group. The new company, headquartered in San Diego, CA, is based on human health applications of a Dow-developed technology called Pfēnex Expression Technology.

The action is consistent with Dow’s strategy of active portfolio management, according to a company statement. Dow will hold a significant minority stake in Pfenex along with Signet Healthcare Partners, a venture capital investor focused on the healthcare sector. Financial terms were not disclosed.

“We are very pleased to help establish Pfenex as an independent company that will accelerate further development of this valuable technology and help bring solutions to human health needs,” said Heinz Haller, Dow executive vice president, Performance Systems. “As we are actively managing Dow’s business portfolio, we also are maximizing value by applying the experience of Dow Venture Capital and its model for growing companies with novel and game-changing technologies that have the potential for significant equity value.”

Dow’s contribution to Pfenex includes Pfēnex Expression Technology for human health applications, protein production assets, customer contracts and lists, process technology, trademarks, certain intellectual property, and approximately 20 experienced employees.

According to a Dow press statement, “Pfenex is a biotechnology company specializing in strain engineering and protein production, helping to accelerate the development of new biopharmaceutical therapeutics and vaccines that address critical human health issues from infectious diseases to oncology. Using a high throughput parallel processing, robotically enabled approach based on the bacterium Pseudomonas fluorescens, the platform produces high quality protein for discovery, research, development and commercial use.”

“We are extremely pleased to partner with Signet Healthcare Partners in forming this new company,” said Ken Van Heel, global director, Dow Venture Capital. “Dow has invested in this business over the past five years to the point that the team, technology and initial commercial success provide the basis for an independent company with the potential for significant growth in this new independent business model.”

“We are excited about Pfēnex Expression Technology and the value of its protein expression system in surmounting barriers and shortening timelines in drug development,” said James Gale, managing director of Signet Healthcare Partners. “We are honored to be a partner of Dow in this transaction which we believe will enhance value for all Pfenex stakeholders.”