Ex Parte SHAN et al - Page 2



               Appeal No.  2000-0441                                                                     Page 2                  
               Application No. 08/866,942                                                                                        
                      5.  A cell-based method for screening for modulators of a targeted gene                                    
               expression, said method comprising steps:                                                                         
                      (a) isolating a genetic knock-in primary cell from a transgenic mouse made by                              
               homologous recombination of a targeted native allele with a transgene comprising a                                
               sequence encoding a reporter flanked by flanking sequences which effect the                                       
               homologous recombination of said transgene with said native allele, wherein the                                   
               expression of said reporter is under the control of native gene expression regulatory                             
               sequences of said native allele,                                                                                  
                      (b) determining a first reporter expression level in a first isolated cell wherein said                    
               first isolated cell is, or is a progeny of said genetic knock-in cell;                                            
                      (c) contacting a second isolated cell wherein said second isolated cell is, or is a                        
               progeny of said genetic knock-in cell with a candidate agent under conditions whereby                             
               but for the presence of said agent, said reporter is expressed at said first reporter                             
               expression level;                                                                                                 
                      (d) determining a second reporter expression level in said second isolated cell;                           
                      (e) comparing said first expression level with said second expression level,                               
               wherein a difference between said first and second expression levels indicates that said                          
               candidate agent modulates the targeted gene expression.                                                           
                      The references relied on by the examiner are:                                                              
               Foulkes et al. (Foulkes)              5,665,543                             Sep.   9, 1997                        
               Wadsworth et al. (Wadsworth)          5,720,936                             Feb. 24, 1998                         
               Skoultchi et al. (Skoultchi)          WO 91/06667                           May 16, 1991                          
                      The issue presented for review is whether claims 1-3 and 5-14 are unpatentable                             
               under 35 U.S.C. § 103 in view of Foulkes, Wadsworth and Skoultchi.                                                
                                                        DISCUSSION                                                               
                      According to the examiner, Foulkes describes genetic knock-in cells derived from                           
               established cells lines by homologous recombination of a targeted native allele with a                            
               transgene encoding a reporter, wherein the expression of the reporter is under the                                
               control of the native gene expression regulatory sequences.  Paper No. 4.  The cells                              
               are used in a reporter assay to screen candidate compounds for the ability to modulate                            
               expression of the targeted native allele.                                                                         



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