Ex Parte DIXON et al - Page 2


                 Appeal No. 2002-1367                                                          Page 2                    
                 Application No. 08/981,964                                                                              

                        phenotype, and determining whether any such detectable change                                    
                        has occurred.                                                                                    
                        7.      A host cell which is a fungus transformed with a promoter                                
                        element which controls expression of a fungal acetoacetyl CoA                                    
                        thiolase gene operably linked to a reporter system such that                                     
                        inhibition of sterol biosynthesis in the host cell leads to a detectable                         
                        change in cell phenotype.                                                                        
                        The examiner relies upon the following references:                                               
                        Kirsch et al. (Kirsch)       EP 0627491                  Dec. 7, 1994                            
                        Servouse et al. (Servouse), “Regulation of Early Enzymes of Ergosterol                           
                        Biosynthesis in Saccharomyces cerevisiae,” Biochem. J., Vol. 240, pp.                            
                        541-47 (1986)                                                                                    
                        Dequin et al. (Dequin), “Cloning, Sequencing and Analysis of the Yeast S.                        
                        uvarum ERG10 Gene Encoding Acetoacetyl CoA Thiolase,” Curr. Genet.,                              
                        Vol. 13, pp. 471-78 (1988)                                                                       
                        Hiser et al. (Hiser), “ERG10 from Saccharomyces cerevisiae Encodes                               
                        Acetoacetyl-CoA Thiolase,” J. Biol. Chem., Vol. 269, No. 50, pp. 31383-                          
                        389 (1994)                                                                                       
                        Dimster-Denk et al. (Dimster-Denk), “Feedback regulation of 3-hydroxy-3-                         
                        methylglutaryl Coenzyme A reductase in Saccharomyces cerevisiae,”                                
                        Molecular Biology of the Cell, Vol. 5, pp. 655-665 (1994)                                        
                        Claims 1-12 stand rejected under 35 U.S.C. § 103(a) as being obvious                             
                 over the combination of Kirsch, Servouse, and Dequin or Hiser.  After careful                           
                 review of the record and consideration of the issue before us, we reverse.                              
                                                     DISCUSSION                                                          
                        Claims 1-12 stand rejected under 35 U.S.C. § 103(a) as being obvious                             
                 over the combination of Kirsch, Servouse, and Dequin or Hiser.                                          










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