WO2010099195A1 - Host cells and methods of use - Google Patents

Abstract

The present invention provides genetically modified Pichia strains wherein at least one nucleic acid sequence encoding a functional gene product and/or at least one nucleic acid sequence necessary for expression of at least one functional gene product in said Pichia strain is genetically modified, wherein said gene product is responsible for proteolysis and/or glycosylation in said genetically modified Pichia strain. In particular, Pichia strains are provided wherein nucleic acid sequence encoding a functional gene product or expression of said gene product are genetically modified: PEP 4, PRBl, YPSl, YPS2, YMPl, YMP2, YMP 3 and PMT4. Also provided herein are genetically modified host cells wherein wild type parent of said genetically modified host cell comprises a gene encoding a polypeptide having at least 60% sequence identity to amino acids 1-865 of SEQ ID NO:4, SEQ ID NO:6 and SEQ ID NO: 8 wherein said gene is genetically modified in the genome of said host cell such that the gene product is reduced or eliminated in said genetically modified host cell compared with said wild type host cell.

Description

Host Cells and Methods of Use

This application claims the benefit of U.S. Provisional Application No. 61/155,706 filed 26 February 2009 which is incorporated herein in its entirety.

FIELD OF THE INVENTION

This invention is in the field of biochemical engineering. More particularly, this invention relates to genetically modified Pichia strains and methods for producing polypeptides in them.

BACKGROUND OF THE INVENTION

Therapeutic polypeptides and proteins can be expressed in a variety of host cells including bacterial cells, E. coli cells, fungal or yeast cells, cells of a microorganism, insect cells, and mammalian cells. Fungal hosts such as the methylotrophic yeast Pichia pastoris has distinct advantages for therapeutic protein expression~e.g. it does not secrete high amounts of endogenous proteins, it has a strong inducible promoter, it can be grown in defined chemical media, and it can produce high titers of recombinant proteins (Cregg et al., MoI. Biotech. 16:23-52 (2000)). Yeast and filamentous fungi have both been successfully used for the production of recombinant proteins, both intracellular and secreted (Cereghino, J. L. and J. M. Cregg 2000 FEMS Microbiology Reviews 24(1): 45 66; Harkki, A., et al. 1989 Bio-Technology 7(6): 596; Berka, R. M., et al. 1992 Abstr. Papers Amer. Chem.Soc.203: 121-BIOT; Svetina, M., et al. 2000 J. Biotechnol. 76(23): 245-251. Pichia is a remarkable host cell for expression of recombinant human serum albumin (HSA). However, the expression of other therapeutic polypeptides including polypeptides genetically fused with HSA faces the technical barriers of undesired proteolysis and glycosylation.

Heterologous proteins expressed in P. pastoris may contain additional mannose sugars resulting in "high mannose" glycans, as well as mannosylphosphate groups which impart a negative charge onto a protein. Glycosylated proteins with either high mannose glycans or charged mannans are a high risk for eliciting an immune response in humans (Takeuchi, Trends in Glycosci. & Glycotech., 9:S29-S35 (1997); Rosenfeld et al., J. Biol Chem., 249:2319-2321 (1974)). Accordingly, it is desirable to produce therapeutic peptides, polypeptides and/or proteins in fungal host systems, such that the pattern of glycosylation is identical or at least similar to that in humans.

Thus, there is a need for yeast strains, in particular Pichia strains that are capable of producing heterologous peptides, polypeptides and/or proteins with reduced proteolysis and/or glycosylation when compared with wild type strains. In addition, there is a need to identify genes within yeast strains, in particular Pichia strains, responsible for producing proteins involved in proteolytic and glycosylation pathways.

SUMMARY OF THE INVENTION

In one aspect of the present invention, genetically modified Pichia strains are provided wherein at least one nucleic acid sequence encoding a functional gene product and/or at least one nucleic acid necessary for expression of at least one gene product in said Pichia strain is genetically modified, wherein said gene product is responsible for proteolysis and/or glycosylation in said genetically modified Pichia strain.

Also provided herein are methods of producing at least one heterologous polypeptide comprising expressing said heterologous polypeptide in a genetically modified Pichia strains of the present invention. In another aspect, the present invention provides heterologously expressed peptides, polypeptides, and proteins expressed in the host cells of the present invention.

In another aspect of the present invention, an isolated polypeptide having at least 50%, 55%, 60%, 65%, 70%, 75%, 80%, 85%, 90%, 95%, 99% and/or 100% sequence identity to SEQ ID NO:4, SEQ ID NO:6 and SEQ ID NO:8 are provided. Also provided are a genetically modified host cell strain wherein said wild type parent of said host cell comprises a gene encoding a polypeptide having at least 60% sequence identity to SEQ ID NOs:4, 6 and 8 wherein said gene is genetically modified in the genome of said host cell such that the gene product or its activity is reduced or eliminated in said genetically modified host cell compared with said wild type host cell. BRIEF DESCRIPTION OF THE FIGURES

Figure 1: Novel Pichia protease Ympl identified using affinity purification and

LC/MS analysis

Figure 2: Predicted structure of YMPl (SEQ ID NO:4) showing amino acids 1-857 as SEQ ID NO: 15.

Figure 3: Protease activity assay of ympl mutant strain

Figure 4: Zymogram assay of ympl mutant strain

Figure 5: ympl knockout effect on proteolysis of heterologous protein (SEQ ID

NO:1) Figure 6: ysp2 knockout effect on proteolysis of heterologous protein (SEQ ID NO: 1)

Figure 7: yspl knockout effect on proteolysis of heterologous protein (SEQ ID NO: 1)

Figure 8: pep4 knockout effect on proteolysis of heterologous protein (SEQ ID NO: 1)

Figure 9: Buffer stability study of ympl, ymp3 mutant strains

Figure 10: Zymolyase assay results for wild type (WT), pmtl and pmt4 Pichia mutants

Figure 11: Glycosylation analysis of heterologous protein (SEQ ID NO: 1) frompmt4 mutant strain

DETAILED DESCRIPTION OF THE INVENTION "Host cell(s)" as used herein refers to a cell that has been introduced (e.g., transformed, infected or transfected) or is capable of introduction (e.g., transformation, infection or transfection) by an isolated polynucleotide sequence. Host cells of the present invention may include, but are not limited to bacterial cells, fungal cells, yeast cells, a cell of a microorganism, insect cells and mammalian cells. The host cells of the present invention of yeast and/or filamentous fungal origin may include, but are not limited to, the following families, genie, and species: Pichia pastoris, Pichia flnlandica, Pichia trehalophila, Pichia koclamae, Pichia membranaefaciens, Pichia methanolica, Pichia minuta (Ogataea minuta, Pichia lindneri), Pichia opuntiae, Pichia thermotolerans, Pichi salictaria, Pichia guercum, Pichia pijperi, Pichia stiptis, Pichia sp., Saccharomyces castelii, Saccharomyces cerevisiae, Saccharomyces kluyveri, Saccharomyces sp., Hansenula polymorpha, Kluyveromyces sp., Kluyveromyces lactis, Candida albicans, Candida sp., Aspergillus fumigatus, Aspergillus nidulans, Aspergillus niger, Aspergillus oryzae, Trichoderma reesei, Chrysosporium lucknowense, Fusarium sp., Fusarium gramineum, Fusarium venenatum, Physcomitrella patens and Neurospora crassa.

"Transformed" as known in the art, is the directed modification of an organism's genome or episome via the introduction of external DNA or RNA, or to any other stable introduction of external DNA or RNA.

"Transfected" as known in the art, is the introduction of external DNA or RNA into a microorganism, including but not limited to recombinant DNA or RNA.

"Identity," as known in the art, is a relationship between two or more polypeptide sequences or two or more polynucleotide sequences, as the case may be, as determined by comparing the sequences. In the art, "identity" also means the degree of sequence relatedness between polypeptide or polynucleotide sequences, as the case may be, as determined by the match between strings of such sequences. "Identity" can be readily calculated by known methods, including but not limited to those described in (Computational Molecular Biology, Lesk, A.M., ed., Oxford University Press, New York, 1988; Biocomputing: Informatics and Genome Projects, Smith, D.W., ed., Academic Press, New York, 1993; Computer Analysis of Sequence Data, Part I, Griffin, A.M., and Griffin, H.G., eds., Humana Press, New Jersey, 1994; Sequence Analysis in Molecular Biology, von Heinje, G., Academic Press, 1987; and Sequence Analysis Primer, Gribskov, M. and Devereux, J., eds., M Stockton Press, New York, 1991; and Carillo, H., and Lipman, D., SIAM J. Applied Math., 48: 1073 (1988). Methods to determine identity are designed to give the largest match between the sequences tested. Moreover, methods to determine identity are codified in publicly available computer programs. Computer program methods to determine identity between two sequences include, but are not limited to, the GCG program package (Devereux, J., et al, Nucleic Acids Research 12(1): 387 (1984)), BLASTP, BLASTN, and FASTA (Altschul, S.F. et al, J. Molec. Biol. 215: 403-410 (1990). The BLAST X program is publicly available from NCBI and other sources (BLAST Manual, Altschul, S., et al., NCBI NLM NIH Bethesda, MD 20894; Altschul, S., et al, J. MoI Biol. 215: 403-410 (1990). The well known Smith Waterman algorithm may also be used to determine identity.

Parameters for polypeptide sequence comparison include the following: Algorithm: Needleman and Wunsch, J. MoI Biol. 48: 443-453 (1970) Comparison matrix: BLOSSUM62 from Hentikoff and Hentikoff, Proc. Natl. Acad. Sci. USA. 89: 10915-10919 (1992) Gap Penalty: 12 Gap Length Penalty: 4

A program useful with these parameters is publicly available as the "gap" program from Genetics Computer Group, Madison WI. The aforementioned parameters are the default parameters for peptide comparisons (along with no penalty for end gaps). Parameters for polynucleotide comparison include the following: Algorithm: Needleman and Wunsch, J. MoI Biol. 48: 443-453 (1970) Comparison matrix: matches = +10, mismatch = 0 Gap Penalty: 50 Gap Length Penalty: 3

Available as: The "gap" program from Genetics Computer Group, Madison WI. These are the default parameters for nucleic acid comparisons.

A meaning for "identity" for polynucleotides and polypeptides, as the case may be, are provided in (1) and (2) below. (1) Polynucleotide embodiments further include an isolated polynucleotide comprising a polynucleotide sequence having at least a 50, 60, 70, 80, 85, 90, 95, 97 or 100% identity to a reference sequence, for example, SEQ ID NO:3, wherein said polynucleotide sequence may be identical to the reference sequence of SEQ ID NO:3 or may include up to a certain integer number of nucleotide alterations as compared to the reference sequence, wherein said alterations are selected from the group consisting of at least one nucleotide deletion, substitution, including transition and transversion, or insertion, and wherein said alterations may occur at the 5 ' or 3' terminal positions of the reference nucleotide sequence or anywhere between those terminal positions, interspersed either individually among the nucleotides in the reference sequence or in one or more contiguous groups within the reference sequence, and wherein said number of nucleotide alterations is determined by multiplying the total number of nucleotides in SEQ ID NO:3 by the integer defining the percent identity divided by 100 and then subtracting that product from said total number of nucleotides in SEQ ID NO:3, or:

n_n ≤ x_n - (x_n • y), wherein n_n is the number of nucleotide alterations, x_n is the total number of nucleotides in SEQ ID NO:3, y is 0.95 for 95%, 0.97 for 97% or 1.00 for 100%, and • is the symbol for the multiplication operator, and wherein any non-integer product of X_n and y is rounded down to the nearest integer prior to subtracting it from x_n. Alterations of a polynucleotide sequence encoding a polypeptide may create nonsense, missense or frameshift mutations in this coding sequence and thereby alter the polypeptide encoded by the polynucleotide following such alterations.

(2) Polypeptide embodiments further include an isolated polypeptide comprising a polypeptide having at least a 50, 60, 70, 80, 85, 90, 95, 97 or 100% identity to a polypeptide reference sequence, such as SEQ ID NO:4, wherein said polypeptide sequence may be identical to the reference sequence or may include up to a certain integer number of amino acid alterations as compared to the reference sequence, wherein said alterations are selected from the group consisting of at least one amino acid deletion, substitution, including conservative and non-conservative substitution, or insertion, and wherein said alterations may occur at the amino- or carboxy-terminal positions of the reference polypeptide sequence or anywhere between those terminal positions, interspersed either individually among the amino acids in the reference sequence or in one or more contiguous groups within the reference sequence, and wherein said number of amino acid alterations is determined by multiplying the total number of amino acids by the integer defining the percent identity divided by 100 and then subtracting that product from said total number of amino acids, or:

ⁿa ^{≤ x}a " (^xa • y)>

wherein n_a is the number of amino acid alterations, x_a is the total number of amino acids in the sequence, y is 0.95 for 95%, 0.97 for 97% or 1.00 for 100%, and • is the symbol for the multiplication operator, and wherein any non- integer product of x_a and y is rounded down to the nearest integer prior to subtracting it from x_a.

"Isolated" means altered "by the hand of man" from its natural state, i.e., if it occurs in nature, it has been changed or removed from its original environment, or both. For example, a polynucleotide or a polypeptide naturally present in a living organism is not "isolated," but the same polynucleotide or polypeptide separated from the coexisting materials of its natural state is "isolated," including, but not limited to, when such polynucleotide or polypeptide is introduced back into a cell.

An "isolated" or "substantially pure" nucleic acid or polynucleotide (e.g., an RNA, DNA or a mixed polymer) is one which is substantially separated from other cellular components that naturally accompany the native polynucleotide in its natural host cell, e.g., ribosomes, polymerases and genomic sequences with which it is naturally associated. The term embraces a nucleic acid or polynucleotide that (1) has been removed from its naturally occurring environment, (2) is not associated with all or a portion of a polynucleotide in which the "isolated polynucleotide" is found in nature, (3) is operatively linked to a polynucleotide which it is not linked to in nature, or (4) does not occur in nature. The term "isolated" or "substantially pure" also can be used in reference to recombinant or cloned DNA isolates, chemically synthesized polynucleotide analogs, or polynucleotide analogs that are biologically synthesized by heterologous systems. However, "isolated" does not necessarily require that the nucleic acid or polynucleotide so described has itself been physically removed from its native environment. For instance, an endogenous nucleic acid sequence in the genome of an organism is deemed "isolated" herein if a heterologous sequence is placed adjacent to the endogenous nucleic acid sequence, such that the expression of this endogenous nucleic acid sequence is altered, for example, increased, decreased or eliminated. In this context, a heterologous sequence is a sequence that is not naturally adjacent to the endogenous nucleic acid sequence, whether or not the heterologous sequence is itself endogenous (originating from the same host cell or progeny thereof) or exogenous (originating from a different host cell or progeny thereof). By way of example, a promoter sequence can be substituted (e.g., by homologous recombination) for the native promoter of a gene in the genome of a host cell, such that this gene has an altered expression pattern. This gene would now become "isolated" because it is separated from at least some of the sequences that naturally flank it.

A nucleic acid is also considered "isolated" if it contains any modifications that do not naturally occur to the corresponding nucleic acid in a genome. For instance, an endogenous coding sequence is considered "isolated" if it contains an insertion, deletion or a point mutation introduced artificially, e.g., by human intervention. An "isolated nucleic acid" also includes a nucleic acid integrated into a host cell chromosome at a heterologous site and a nucleic acid construct present as an episome. Moreover, an "isolated nucleic acid" can be substantially free of other cellular material, or substantially free of culture medium when produced by recombinant techniques, or substantially free of chemical precursors or other chemicals when chemically synthesized. As used herein "nucleic acid sequence encoding a functional gene product" refers to any portion of an encoding part of a gene. The nucleic acid sequence encoding a functional gene product may be a portion of an enzyme that is capable of doing at least one activity of the whole enzyme or an entire enzyme.

As used herein "nucleic acid necessary for expression of at least one gene product" refers to a nucleic acid sequence that encodes any portion of a gene and/or is operably linked to a nucleic acid encoding a gene product but does not necessarily comprise encoding sequence. By way of example, a nucleic acid sequence necessary for the expression of at least one gene product includes, but is not limited to, enhancers, promoters, regulatory sequences, start codons, stop codons, polyadenylation sequences, and/or encoding sequences.

As used herein "proteolysis" or "gene product responsible for proteolysis in a cell" refers to any peptide, polypeptide, protein and/or enzyme or portion thereof capable of causing the cleavage of at least one peptide, polypeptide and/or protein. The gene product responsible for proteolysis may be directly responsible for cleavage (ie, a peptidase) or it may be indirectly responsible as part of a peptidase synthesis pathway. Examples of gene products that are responsible for proteolysis in a cell include, but are not limited to, aspartyl proteases, serine proteases, secreted aspartyl proteases, secreted serine proteases, yeast methyltrophic proteases, DPP IV like endopeptidases, metalloendopeptidases, Prbl-like serine proteases, Prbl serine proteases, and CPY like carboxypeptidases. Also, included in this definition are protease that may be secreted from a cell, but still maintain some or all of it proteolysis activity, such as a secreted serine protease. A secreted protease may be responsible for proteolysis within the cell and/or outside the cell.

As used herein "glycosylation" or "gene product responsible for glycosylation in a cell" refers to any peptide, polypeptide, protein and/or enzyme or portion thereof involved in the addition of at least one saccharide moiety to a polypeptide or elongation of at least one saccharide chain in the cell. The gene product responsible for glycosylation in a cell may be directly responsible for the addition of a saccharide to a polypeptide in a cell, for example, but not limited to mannosyltranferases. Mannosyltransferases may transfer a residue from Dol-P-Man to a serine and/or threonine residue on a peptide, polypeptide and/or protein or may act to transfer a mannose residue from GPD-Man to a saccharide, thus, elongating the saccharide chain. Alternatively, the gene product responsible for glycosylation may be part of a glycosylation pathway and may be indirectly responsible for the addition of polysaccharide to a polypeptide in a cell. Examples of gene products that are responsible for glycosylation in a cell include, but are not limited to mannosyltranferases.

As used herein "yeast methyltropic protease 1 (Ympl) activity" refers to any activity that the protein identified herein as SEQ ID NO:4 can perform. For example, yeast methyltrophic protease 1 activity or Ympl activity includes, but is not limited to, an enzyme's ability to proteolytically cleave a peptide, polypeptide, or protein. In particular, Ympl activity can refer to an enzyme's ability to cleave a polypeptide comprising a fragment and/or variant of a GLP-I agonist, such as, but not limited to, human GLP-I, and/or human albumin. At least one Ympl activity includes, but is not limited to, at least one serine protease activity.

"Polynucleotide(s)" generally refers to any polyribonucleotide or polydeoxyribonucleotide, that may be unmodified RNA or DNA or modified RNA or DNA. "Polynucleotide(s)" include, without limitation, single- and double-stranded DNA, DNA that is a mixture of single- and double-stranded regions or single-, double- and triple-stranded regions, single- and double-stranded RNA, and RNA that is mixture of single- and double-stranded regions, hybrid molecules comprising DNA and RNA that may be single-stranded or, more typically, double-stranded, or triple-stranded regions, or a mixture of single- and double-stranded regions. In addition, "polynucleotide" as used herein refers to triple-stranded regions comprising RNA or DNA or both RNA and DNA. The strands in such regions may be from the same molecule or from different molecules. The regions may include all of one or more of the molecules, but more typically involve only a region of some of the molecules. One of the molecules of a triple-helical region often is an oligonucleotide. As used herein, the term "polynucleotide(s)" also includes DNAs or RNAs as described above that comprise one or more modified bases. Thus, DNAs or RNAs with backbones modified for stability or for other reasons are "polynucleotide(s)" as that term is intended herein. Moreover, DNAs or RNAs comprising unusual bases, such as inosine, or modified bases, such as tritylated bases, to name just two examples, are polynucleotides as the term is used herein. It will be appreciated that a great variety of modifications have been made to DNA and RNA that serve many useful purposes known to those of skill in the art. The term "polynucleotide(s)" as it is employed herein embraces such chemically, enzymatically or metabolically modified forms of polynucleotides, as well as the chemical forms of DNA and RNA characteristic of viruses and cells, including, for example, simple and complex cells. "Polynucleotide(s)" also embraces short polynucleotides often referred to as oligonucleotide(s).

"Polypeptide(s)" refers to any peptide or protein comprising two or more amino acids joined to each other by peptide bonds or modified peptide bonds. "Polypeptide(s)" refers to both short chains, commonly referred to as peptides, oligopeptides and oligomers and to longer chains generally referred to as proteins. Polypeptides may comprise amino acids other than the 20 gene encoded amino acids. "Polypeptide(s)" include those modified either by natural processes, such as processing and other post- translational modifications, but also by chemical modification techniques. Such modifications are well described in basic texts and in more detailed monographs, as well as in a voluminous research literature, and they are well known to those of skill in the art. It will be appreciated that the same type of modification may be present in the same or varying degree at several sites in a given polypeptide. Also, a given polypeptide may comprise many types of modifications. Modifications can occur anywhere in a polypeptide, including the peptide backbone, the amino acid side-chains, and the amino or carboxyl termini. Modifications include, for example, acetylation, acylation, ADP- ribosylation, amidation, covalent attachment of flavin, covalent attachment of a heme moiety, covalent attachment of a nucleotide or nucleotide derivative, covalent attachment of a lipid or lipid derivative, covalent attachment of phosphotidylinositol, cross-linking, cyclization, disulfide bond formation, demethylation, formation of covalent cross-links, formation of cysteine, formation of pyroglutamate, formylation, gamma-carboxylation, GPI anchor formation, hydroxylation, iodination, methylation, myristoylation, oxidation, proteolytic processing, phosphorylation, prenylation, racemization, glycosylation, lipid attachment, sulfation, gamma-carboxylation of glutamic acid residues, hydroxylation and ADP-ribosylation, selenoylation, sulfation, transfer-RNA mediated addition of amino acids to proteins, such as arginylation, and ubiquitination. See, for instance, PROTEINS - STRUCTURE AND MOLECULAR PROPERTIES, 2nd Ed., T. E. Creighton, W. H. Freeman and Company, New York (1993) and Wold, F., Posttranslational Protein Modifications: Perspectives and Prospects, pgs. 1-12 in POSTTRANSLATIONAL COVALENT MODIFICATION OF PROTEINS, B. C. Johnson, Ed., Academic Press, New York (1983); Seifter et al, Meth. Enzymol. 182:626-646 (1990) and Rattan et al, Protein Synthesis: Posttranslational Modifications and Aging, Ann. N. Y. Acad. Sci. 663: 48-62 (1992). Polypeptides may be branched or cyclic, with or without branching. Cyclic, branched and branched circular polypeptides may result from post-translational natural processes and may be made by entirely synthetic methods, as well.

"Recombinant expression system(s)" refers to expression systems or portions thereof or polynucleotides of the invention introduced, transfected or transformed into a host cell or host cell lysate for the production of the polynucleotides and polypeptides of the invention.

"Variant(s)" as the term is used herein, is a polynucleotide or polypeptide that differs from a reference polynucleotide or polypeptide respectively, but retains essential properties. A typical variant of a polynucleotide differs in nucleotide sequence from another, reference polynucleotide. Changes in the nucleotide sequence of the variant may or may not alter the amino acid sequence of a polypeptide encoded by the reference polynucleotide. Nucleotide changes may result in amino acid substitutions, additions, deletions, fusion proteins and truncations in the polypeptide encoded by the reference sequence, as discussed below. A typical variant of a polypeptide differs in amino acid sequence from another, reference polypeptide. Generally, differences are limited so that the sequences of the reference polypeptide and the variant are closely similar overall and, in many regions, identical. A variant and reference polypeptide may differ in amino acid sequence by one or more substitutions, additions, deletions in any combination. A substituted or inserted amino acid residue may or may not be one encoded by the genetic code. The present invention also includes include variants of each of the polypeptides of the invention, that is polypeptides that vary from the referents by conservative amino acid substitutions, whereby a residue is substituted by another with like characteristics. Typical such substitutions are among Ala, VaI, Leu and He; among Ser and Thr; among the acidic residues Asp and GIu; among Asn and GIn; and among the basic residues Lys and Arg; or aromatic residues Phe and Tyr. Particularly there are variants in which several, 5-10, 1-5, 1-3, 1-2 or 1 amino acids are substituted, deleted, or added in any combination. A variant of a polynucleotide or polypeptide may be a naturally occurring such as an allelic variant, or it may be a variant that is not known to occur naturally. Non- naturally occurring variants of polynucleotides and polypeptides may be made by mutagenesis techniques, by direct synthesis, and by other recombinant methods known to skilled artisans.

"Microorganism(s)" means a (i) prokaryote, including but not limited to, a member of the genus Streptococcus, Staphylococcus, Bordetella, Corynebacterium, Mycobacterium, Neisseria, Haemophilus, Actinomycetes, Streptomycetes, Nocardia, Enterobacter, Yersinia, Fancisella, Pasturella, Moraxella, Acinetobacter, Erysipelothrix, Branhamella, Actinobacillus, Streptobacillus, Listeria, Calymmatobacterium, Brucella, Bacillus, Clostridium, Treponema, Escherichia, Salmonella, Kleibsiella, Vibrio, Proteus, Erwinia, Borrelia, Leptospira, Spirillum,

Campylobacter, Shigella, Legionella, Pseudomonas, Aeromonas, Rickettsia, Chlamydia, Borrelia and Mycoplasma, and further including, but not limited to, a member of the species or group, Group A Streptococcus, Group B Streptococcus, Group C Streptococcus, Group D Streptococcus, Group G Streptococcus, Streptococcus pneumoniae, Streptococcus pyogenes, Streptococcus agalactiae, Streptococcus faecalis, Streptococcus faecium, Streptococcus durans, Neisseria gonorrheae, Neisseria meningitidis, Staphylococcus aureus, Staphylococcus epidermidis, Corynebacterium diptheriae, Gardnerella vaginalis, Mycobacterium tuberculosis, Mycobacterium bovis, Mycobacterium ulcerans, Mycobacterium leprae, Actinomyctes israelii, Listeria monocytogenes, Bordetella pertusis, Bordatella parapertusis, Bordetella bronchiseptica, Escherichia coli, Shigella dysenteήae, Haemophilus influenzae, Haemophilus aegyptius, Haemophilus parainfluenzae, Haemophilus ducreyi, Bordetella, Salmonella typhi, Citrobacter freundii, Proteus mirabilis, Proteus vulgaris, Yersinia pestis, Kleibsiella pneumoniae, Serratia marcessens, Serratia liquefaciens, Vibrio cholera, Shigella dysenterii, Shigella flexneri, Pseudomonas aeruginosa, Franscisella tularensis, Brucella abortis, Bacillus anthracis, Bacillus cereus, Clostridium perfringens, Clostridium tetani, Clostridium botulinum, Treponema pallidum, Rickettsia rickettsii and Chlamydia trachomitis, (ii) an archaeon, including but not limited to Archaebacter, and (iii) a unicellular or filamentous eukaryote, including but not limited to, a protozoan, a fungus, a member of the genus Saccharomyces, Kluveromyces, or Candida, and a member of the species Saccharomyces ceriviseae, Kluveromyces lactis, or Candida albicans.

"Bacteria(um)(l)" means a (i) prokaryote, including but not limited to, a member of the genus Streptococcus, Staphylococcus, Bordetella, Corynebacterium, Mycobacterium, Neisseria, Haemophilus, Actinomycetes, Streptomycetes, Nocardia, Enter vbacter, Yersinia, Fancisella, Pasturella, Moraxella, Acinetobacter, Erysipelothrix, Branhamella, Actinobacillus, Streptobacillus, Listeria, Calymmatobacterium, Brucella, Bacillus, Clostridium, Treponema, Escherichia, Salmonella, Kleibsiella, Vibrio, Proteus, Erwinia, Borrelia, Leptospira, Spirillum, Campylobacter, Shigella, Legionella, Pseudomonas, Aeromonas, Rickettsia, Chlamydia, Borrelia and Mycoplasma, and further including, but not limited to, a member of the species or group, Group A Streptococcus, Group B Streptococcus, Group C Streptococcus, Group D Streptococcus, Group G Streptococcus, Streptococcus pneumoniae, Streptococcus pyogenes, Streptococcus agalactiae, Streptococcus faecalis, Streptococcus faecium, Streptococcus durans, Neisseria gonorrheae, Neisseria meningitidis, Staphylococcus aureus, Staphylococcus epidermidis, Corynebacterium diptheriae, Gardnerella vaginalis, Mycobacterium tuberculosis, Mycobacterium bovis, Mycobacterium ulcerans, Mycobacterium leprae, Actinomyctes israelii, Listeria monocytogenes, Bordetella pertusis, Bordatella parapertusis, Bordetella bronchiseptica, Escherichia coli, Shigella dysenteriae, Haemophilus influenzae, Haemophilus aegyptius, Haemophilus parainfluenzae, Haemophilus ducreyi, Bordetella, Salmonella typhi, Citrobacter freundii, Proteus mirabilis, Proteus vulgaris, Yersinia pestis, Kleibsiella pneumoniae, Serratia marcessens, Serratia liquefaciens, Vibrio cholera, Shigella dysenterii, Shigella flexneri, Pseudomonas aeruginosa, Franscisella tularensis, Brucella abortis, Bacillus anthracis, Bacillus cereus, Clostridium perfringens, Clostridium tetani, Clostridium botulinum, Treponema pallidum, Rickettsia rickettsii and Chlamydia trachomitis, and (ii) an archaeon, including but not limited to Archaebacter.

As used herein, "heterologous polypeptide(s)" refers to a polypeptide not naturally synthesized by a transformed host cell or microorganism of interest and introduced into the host cell or microorganism by recombinant DNA. For example, Pichia may act as a host cell for the expression of human serum albumin, which does not occur in non-transformed or non-transfected Pichia. Heterologous polypeptides may include polypeptides that have been modified to facilitate isolation.

As used herein "affinity tag" refers to any moiety associated with a molecule that may give said molecule a selective affinity for another substance or molecule. For instance, an affinity tag may be used to facilitate purification of a molecule by providing the molecule with a selective affinity for a column's packing material. A non-limiting example of an affinity tag is a his-tag. Nucleic acid is "operably linked" when it is placed into a functional relationship with another nucleic acid sequence. For example, DNA for a presequence or secretory leader is operably linked to DNA for a polypeptide if it is expressed as a preprotein that participates in the secretion of the polypeptide; a promoter or enhancer is operably linked to a coding sequence if it affects the transcription of the sequence; or a ribosome binding site is operably linked to a coding sequence if it is positioned so as to facilitate translation. Generally, "operably linked" means that the DNA sequences being linked are contiguous, and, in the case of a secretory leader, contiguous and in reading phase. However, enhancers do not have to be contiguous. Linking is accomplished by ligation at convenient restriction sites. If such sites do not exist, the synthetic oligonucleotide adaptors or linkers are used in accordance with conventional practice.

As used herein "harvesting" cells refers to collection of cells from cell culture. Cells may be concentrated during harvest to separate them from culture broth, for instance by centrifugation or filtration. Harvesting cells may further comprise the step of lysing the cells to obtain intracellular material, such as, but not limited to polypeptides and polynucleotides. It should be understood by the skilled artisan that certain cellular material, including but not limited to, heterologously expressed polypeptide, may be released from cells during culture. Thus, a product (e.g., a heterologously expressed polypeptide) of interest may remain in culture broth after cells are harvested.

Also, provided are methods wherein the recombinant DNA construct encodes a selectable marker. Such a selectable marker provides for either positive or negative selection. Methods are also provided comprising expressing said selectable marker and comparing the amount of selectable marker produced by at least one first transformed cell of the selecting step with the amount of selectable marker produced by at least one second transformed cell of the selecting step wherein the first and second transformed cell produce the same selectable marker. As is understood in the art, selectable markers include, but are not limited to, dihydrofolate reductase (dhfr), β-galactosidase, fluorescent protein, secreted form of human placental alkaline phosphatase, beta-glucuronidase, yeast selectable markers LEU 2 and URA3, apoptosis resistant genes, and antisense oligonucleotides, as well as antibiotic resistance genes conferring the ability to grow in the presence of antibiotics including, neomycin (neo), kanamycin, geneticin, hygromycin B, puromycin, zeocin, blasticidin, nourseothricin, bialaphos, phleomycin, and ampicillin. As is also understood in the art, cells can be sorted by a variety of means, including but not limited to, visual inspection or a cell sorter such as a BD FACS Aria, which can detect expression of a selectable marker.

The term "wild type" as is understood in the art refers to a host cell or a polypeptide or polynucleotide sequence that occurs in a native population without genetic modification. For example, a "wild type parent of a host cell" refers to an unmodified strain of a host cell prior to any genetic modification being made or occurring in the genome of the host cell.

As used herein, "titer yield" refers to the concentration of a product (e.g., heterologously expressed polypeptide) in solution (e.g., culture broth or cell-lysis mixture or buffer) and it usually expressed as mg/L or g/L. An increase in titer yield may refer to an absolute or relative increase in the concentration of a product produced under two defined set of conditions.

"Incretin hormone" as used herein means any hormone that potentiates insulin secretion or otherwise raises the level or insulin. One example of an incretin hormone is GLP-I. GLP-I is an incretin secreted by intestinal L cells in response to ingestion of food. In a healthy individual, GLP-I plays an important role regulating postprandial blood glucose levels by stimulating glucose-dependent insulin secretion by the pancreas resulting in increased glucose absorption in the periphery. GLP-I also suppresses glucagon secretion, leading to reduced hepatic glucose output. In addition, GLP-I delays gastric emptying time and slows small bowel motility delaying food absorption. GLP-I promotes continued beta cell competence by stimulating transcription of genes involved in glucose dependent insulin secretion and by promoting beta-cell neogenesis (Meier, et al. Biodrugs 2003; 17 (2): 93-102). "GLP-I activity" as used herein means one or more of the activities of naturally occurring human GLP-I, including but not limited to, reducing blood and/or plasma glucose, stimulating glucose-dependent insulin secretion or otherwise raising the level or insulin, suppressing glucagon secretion, reducing fructosamine, increases glucose delivery and metabolism to the brain, delaying gastric emptying, and promoting beta cell competence, and/or neogenesis. Any of these activities and other activity associated with GLP-I activity may be caused directly or indirectly by a composition having GLP-I activity or a GLP-I agonist. By way of example, a composition having GLP-I activity may directly or indirectly stimulate glucose- dependent while the stimulation of insulin production may indirectly reduce plasma glucose levels in a mammal.

An "incretin mimetic" as used herein is a compound capable of potentiating insulin secretion or otherwise raise the level or insulin. An incretin mimetic may be capable of stimulating insulin secretion, increasing beta cell neogenesis, inhibiting beta cell apoptosis, inhibiting glucagon secretion, delaying gastric emptying and inducing satiety in a mammal. An incretin mimetic may include, but is not limited to, any polypeptide which has GLP-I activity, including but not limited to, exendin 3 and exendin 4, including any fragments and/or variants and/or conjugates thereof. As used herein "fragment," when used in reference to a polypeptide, is a polypeptide having an amino acid sequence that is the same as part but not all of the amino acid sequence of the entire naturally occurring polypeptide. Fragments may be "free-standing" or comprised within a larger polypeptide of which they form a part or region as a single continuous region in a single larger polypeptide. By way of example, a fragment of naturally occurring GLP-I would include amino acids 7 to 36 of naturally occurring amino acids 1 to 36. Furthermore, fragments of a polypeptide may also be variants of the naturally occurring partial sequence. For instance, a fragment of GLP-I comprising amino acids 7-30 of naturally occurring GLP-I may also be a variant having amino acid substitutions within its partial sequence. As used herein "conjugate" or "conjugated" refers to two molecules that are bound to each other. For example, a first polypeptide may be covalently or non- covalently bound to a second polypeptide. The first polypeptide may be covalently bound by a chemical linker or may be genetically fused to the second polypeptide, wherein the first and second polypeptide share a common polypeptide backbone. Conjugate of the present invention may comprise at least one therapeutic polypeptide conjugated to human serum albumin. Other conjugates also include, but are not limited to, at least one therapeutic polypeptides conjugated to transferrin, a single chain variable domain, and/or at least one Fc region of an antibody. Conjugates may or may not comprise a linker. As used herein "tandemly oriented" refers to two or more polypeptides that are adjacent to one another as part of the same molecule. They may be linked either covalently or non-covalently. Two or more tandemly oriented polypeptides may form part of the same polypeptide backbone. Tandemly oriented polypeptides may have direct or inverted orientation and/or may be separated by other amino acid sequences. A "domain antibody" or "dAb" may be considered the same as a "single variable domain" which is capable of binding to an antigen. A single variable domain may be a human antibody variable domain, but also includes single antibody variable domains from other species such as rodent (for example, as disclosed in WO 00/29004), nurse shark and Camelid VHH dAbs. Camelid VHH are immunoglobulin single variable domain polypeptides that are derived from species including camel, llama, alpaca, dromedary, and guanaco, which produce heavy chain antibodies naturally devoid of light chains. Such V_HH domains may be humanized according to standard techniques available in the art, and such domains are considered to be "domain antibodies". As used herein V_H includes camelid V_HH domains.

The phrase "single variable domain" refers to an antigen binding protein variable domain (for example, V_H, V_HH, V_L) that specifically binds an antigen or epitope independently of a different variable region or domain.

The term "antigen binding protein" as used herein refers to antibodies, antibody fragments and other protein constructs, such as domains, but not limited to, variable domains and domain antibodies, which are capable of binding to an antigen.

As used herein, "reduced amount" of an enzyme or fragment thereof or enzyme activity compared in a genetically modified host cell refers to a genetically modified host cell which produces less of at least one enzyme or shows less of at least one kind of enzyme activity when compared with a non-genetically modified host cell. Typically, the comparison in enzyme activity produced by a genetically modified host cell is with the wild type strain of the same species before genetic modification. However, the comparison can also be between genetically modified host and a wild type host from the genus but different species or strain or with another genetically modified strain. A reduction in at least one enzyme or enzyme activity also includes a complete abrogation of at least one enzyme or enzyme activity in which none of at least one enzyme is produced in a genetically modified host cell and/or none of at least one enzyme is functional or shows activity. Also included within this definition is a reduced amount of at least one enzyme activity. That is, enzymes which have more then one activity may maintain the amount of a first activity while a second activity of the same enzyme is reduced.

As herein used, the terms "stringent conditions" and a "stringent hybridization conditions" mean hybridization will occur only if there is at least 70% and at least 80%, but at least 95% identity between the sequences. An example of stringent hybridization conditions is overnight incubation at 42⁰C in a solution comprising: 50% formamide, 5xSSC (15OmM NaCl, 15mM trisodium citrate), 50 mM sodium phosphate (pH7.6), 5x Denhardt's solution, 10% dextran sulfate, and 20 micrograms/ml denatured, sheared salmon sperm DNA, followed by washing the filters in 0. Ix SSC at about 65⁰C. Hybridization and wash conditions are well known and exemplified in Sambrook, et al, Molecular Cloning: A Laboratory Manual, Second Edition, Cold Spring Harbor, N.Y., (1989), particularly Chapter 11 therein, the disclosure of which is hereby incorporated in its entirety by reference.

As used herein "genetic modification" or "genetically modified" refers to any suppression, substitution, deletion and/or insertion of one or more bases or of a fragment of a cell DNA sequence(s). Such genetic modification may be obtained in vitro (directly on isolated DNA) or in situ, for example by genetic engineering techniques or by exposing the cells to a mutagenic agent. Mutagenic agents include, for example, physical agents such as energetic rays (X-rays, γ-rays, UV, etc.) or chemical agents capable of reacting with different functional groups of DNA, such as alkylating agents (EMS, NQO, etc.) bialkylating agents, intercalating agents, etc. Genetic modifications may also be obtained by genetic disruption for example according to the method disclosed by Rothstein et al. (Meth. Enzymol. 194:281- 301(1991)). According to this method, part or all of a gene is replaced through homologous recombination by an in vitro modified version. Genetic modifications can also be obtained by any mutation insertion on DNA sequences, such as transposons, phages, etc. Also, as used herein "genetically modified" can refer to a gene encoding a polypeptide or a polypeptide having at least one deletion, substitution or suppression of a nucleic acid or amino acid, respectively. For example, a polypeptide in which at least one amino acid is substituted from the wild type form would be considered genetically modified.

Genetic modification may be reversed or attenuated by cellular mechanism. Alternatively, mutations can be non-reverting and or non-leaky. "Leaky mutations" include mutations that result in a partial rather than a complete inactivation of wild type function.

The genetic modifications carried by the host cells of the invention may be located in a coding region of the DNA sequence of the cell and/or in a region affecting the expression of a gene. Modifications of the invention will generally, therefore, affect gene product or regulation or promotion of gene product of proteins and/or enzymes involved in proteolysis and/or glycosylation. The reduced capacity of the cells of the invention to proteolytically cleave and/or glycosylate a heterologously expressed polypeptide may be due to structural and/or conformational changes, from the production of one or more enzymes having altered biological properties, from the absence of production of said one or more enzymes or from the production of one or more enzymes at low levels.

In one aspect of the present invention genetically modified Pichia strains are provided wherein at least one nucleic acid sequence encoding a functional gene product and/or at least one nucleic acid necessary for expression of at least one gene product in said Pichia strain is genetically modified, wherein said gene product is responsible for proteolysis and/or glycosylation in said genetically modified Pichia strain. The genetically modified Pichia strains of the present invention include, but are not limited to, Pichia wherein at least one nucleic acid sequences encoding at least one of the following a functional gene product or expression of said gene product is genetically modified: PEP4, PRBl, YPSl, YPS2, YMPl, DAP2, GRHl, PRDl, YSP3, PRB3, YMP2, and/or YMP3. Also included in the present invention are genetically modified Pichia strains which produces a reduced amount, none and/or at least one reduced activity of at least one of the following enzymes and/or type of enzyme: aspartyl proteases, serine proteases, secreted aspartyl proteases, secreted serine proteases, yeast methyltrophic proteases, DPP IV like endopeptidases, metalloendopeptidases, Prbl-like serine proteases, Prbl serine proteases, CPY like carboxypeptidases and/or mannosyltranferases compared with wild type strain. Additionally, genetically modified strains may produce an enzyme selected from: aspartyl proteases, serine proteases, secreted aspartyl proteases, secreted serine proteases, yeast methyltrophic proteases, DPP IV like endopeptidases, metalloendopeptidases, Prbl-like serine proteases, Prbl serine proteases, CPY like carboxypeptidases and/or mannosyltranferases wherein said enzyme demonstrates at least one reduced activity of said enzyme compared with a wild type strain and/or enzyme.

Genetically modified Pichia strains of the present invention also include Pichia strains wherein at least one of the following nucleic acid sequences encoding a functional gene product or expression of said gene product is genetically modified: OCHl, PMTl, PMT2, and/or PMT4. The genetically modified Pichia of the present invention produce a reduced amount, no, or reduced activity of at least one mannosyltransferase compared with wild type strain. Additionally, genetically modified strains may produce an enzyme associated with glycosylation such as at least one mannosyltransferase that has a reduced activity compared with wild type enzyme.

Genetically modified Pichia strains of the present invention include, but are not limited to genetically modified form of wild type X-33 or SMDl 163 Pichia. Genetically modified Pichia strains of the present invention include, but are not limited to genetically modified form of wild type Pichia pastoris, Pichia finlandica, Pichia trehalophila, Pichia koclamae, Pichia membranaefaciens, Pichia methanolica, Pichia minuta (Ogataea minuta, Pichia Hndneri), Pichia opuntiae, Pichia thennotolerans, Pichi salictaria, Pichia guercum, Pichia pijperi, Pichia stiptis, Pichia sp.

In another aspect of the present invention, modified Pichia strains are provided wherein the following nucleic acid sequence encoding a functional gene product or expression of said gene product are genetically modified: PEP4, PRBl, YPSl, YPS2, YMPl, YMP2, YMP3 md PMT4. The modified Pichia of the present invention produce a reduced amount, none or reduced activity of at least one of the following gene products compared with a wild type strain: aspartyl protease, serine protease, serine secreted protease and mannosyltransferase. The modified Pichia strains of the present invention, also have reduced activity of at least one of the following gene products compared with wild type strain: at least one aspartyl protease, at least one serine protease, at least one serine secreted protease and/or at least one mannosyltransferase. The genetically modified Pichia strains of the present invention may further comprise a polynucleotide capable of expressing at least one heterologous polypeptide. Polynucleotide capable of expressing at least one heterologous polypeptide include, but are not limited to, vectors, DNA transformed into the genome of the host cell, virus or part of a virus, and/or plasmids. Polynucleotide capable of expressing a heterologous polypeptide may be transformed into the genome of the Pichia and/or may be part of an expression vector and/or episomal expression system.

As is understood in the art, DNA may be transformed into a host cell by several different methods. In yeast, any convenient method of DNA transfer may be used, such as electroporation, the lithium chloride method, or the spheroplast method. To produce a stable strain suitable for high-density fermentation, it is desirable to integrate the DNA into the host chromosome. Integration occurs via homologous recombination, using techniques known in the art. For example, DNA capable of expressing at least one heterologous protein can be provided with flanking sequences homologous to sequences of the host organism. In this manner, integration occurs at a defined site in the host genome, without disruption of desirable or essential genes. Alternatively, DNA capable of expressing at least one heterologous protein is integrated into the site of an undesired gene in a host chromosome, effecting the disruption or deletion of the gene or expression of that gene product. For example, integration into the sites of the YMPl, YMP2, YMPi, PEP4, PRBl, YPSl, YPS2, DAP2, GRHl, PRDl, YSP3, PRB3, SEQ ID NO: 10, SEQ ID NO: 12 and/or SEQ ID NO: 14 genes allows the expression of the heterologous protein while preventing the expression of enzymes involved in yeast proteolysis. In other embodiments, DNA may be introduced into the host via a chromosome, plasmid, retroviral vector, or random integration into the host genome.

In another aspect of the present invention, at least one heterologous polypeptide expressed in the host cells of the present invention comprises at least one GLP-I agonist. In some aspects, the GLP-I agonist is selected from the group of: incretin hormone and/or fragment, variant and/or conjugate thereof and incretin mimetic and/or fragment, variant and/or conjugate thereof. In some aspects, at least one heterologous polypeptide has at least one GLP-I activity.

Polypeptides having GLP-I activity may comprise at least one fragment and/or variant of human GLP-I. The two naturally occurring fragments of human GLP- 1 are represented in SEQ ID NO:2.

7 8 9 10 11 12 13 14 15 16 17 His-Ala-Glu-Gly-Thr-Phe-Thr-Ser-Asp-Val-Ser- 18 19 20 21 22 23 24 25 26 27 28 Ser-Tyr-Leu-Glu-Gly-Gln-Ala-Ala-Lys-Glu-Phe-

29 30 31 32 33 34 35 36 37 Ile-Ala-Trp-Leu-Val-Lys-Gly-Arg-Xaa ( SEQ I D NO : 2 ) wherein: Xaa at position 37 is GIy (hereinafter designated as "GLP- 1(7-37)"), or - NH₂ (hereinafter designated as "GLP- 1(7-36)"). GLP-I fragments may include, but are not limited to, molecules of GLP-I comprising, or alternatively consisting of, amino acids 7 to 36 of human GLP-I (GLP- 1(7-36)). Variants of GLP-I or fragments thereof may include, but are not limited to, one, two, three, four, five or more amino acid substitutions in wild type GLP-I or in the naturally occurring fragments of GLP- 1 shown in SEQ ID NO.: 2. Variants GLP-I or fragments of GLP-I may include, but are not limited to, substitutions of an alanine residue analogous to alanine 8 of wild type GLP-I, such alanine being mutated to a glycine (hereinafter designated as "A8G") (See for example, the mutants disclosed in U.S. Pat. No. 5,545,618, herein incorporated by reference in its entirety).

In another aspect, the at least one polypeptide having GLP-I activity comprises at least one fragment and/or variant of human GLP-I fused with human serum albumin. In another aspect, at least one fragment and variant of GLP-I comprises GLP-1(7-36(A8G)). The at least one fragment and variant of GLP-I is genetically fused to human serum albumin. In another aspect, the heterologous polypeptide of the present invention comprises at least two GLP-I (7-36(A8G)) tandemly and genetically fused to the human serum albumin. The two GLP- 1(7- 36(A8G)) are genetically fused at the N-terminus of the human serum albumin. In some instances, the heterologous polypeptide comprises SEQ ID NO: 1.

HGEGTFTSDVSSYLEGQAAKEFIAWLVKGRHGEGTFTSDVSSYLEGQAAKEFIAWLVKGR 60 DAHKSEVAHRFKDLGEENFKALVLIAFAQYLQQCPFEDHVKLVNEVTEFAKTCVADESAE 120 NCDKSLHTL FGDKLCTVATLRETYGEMADCCAKQEPERNECFLQHKDDNPNLPRLVRPE 180 VDVMCTAFHDNEETFLKKYLYEIARRHPYFYAPELLFFAKRYKAAFTECCQAADKAACLL 240 PKLDELRDEGKASSAKQRLKCASLQKFGERAFKAWAVARLSQRFPKAEFAEVSKLVTDLT 300 KVHTECCHGDLLECADDRADLAKYICENQDSISSKLKECCEKPLLEKSHCIAEVENDEMP 360 ADLPSLAADFVESKDVCKNYAEAKDVFLGMFLYEYARRHPDYSWLLLRLAKTYETTLEK 420 CCAAADPHECYAKVFDEFKPLVEEPQNLIKQNCELFEQLGEYKFQNALLVRYTKKVPQVS 480 TPTLVEVSRNLGKVGSKCCKHPEAKRMPCAEDYLSVVLNQLCVLHEKTPVSDRVTKCCTE 540 SLVNRRPCFSALEVDETYVPKEFNAETFTFHADI CTLSEKERQIKKQTALVELVKHKPKA 600 TKEQLKAVMDDFAAFVEKCCKADDKETCFAEEGKKLVAASQAALGL 674

(SEQ ID NO:1)

In yet another embodiment, at least one heterologous polypeptide expressed in the host cells of the invention comprises one or more of the following: at least one antigen binding protein, at least one single variable domain, and/or at least one domain antibody. Polypeptides comprising at least one antigen binding domain may also comprise at least one polypeptide and/or peptide receptor agonist and/or antagonist. In some instances, the polypeptide agonist may be a GLP-I receptor agonist. As is understood in the art, more than one heterologous polypeptide may be expressed in the same cell. By way of example, a heterologous polypeptide having GLP-I activity can be expressed in the same cell as an antigen binding protein. The polypeptide having GLP-I activity may be expressed from the same polynucleotide as the antigen binding protein, operably linked to the nucleic acid sequenced necessary for expression. Alternatively, and by way of example, a polypeptide having GLP-I activity may be expressed independently of a second heterologous polypeptide such as an antigen binding protein, either from the same episome DNA or genome but operably linked to different polynucleotide sequences necessary for expression or from DNA sequences located on separate vectors.

Also, provided herein are genetically modified Pichia strains, wherein said strain shows reduced proteolysis of said at least one heterologous polypeptide in said strain compared with wild type Pichia. In addition, genetically modified Pichia of the present invention show reduced or no glycosylation of said at least one heterologous polypeptide in said strain compared with wild type Pichia.

In another aspect, methods are provided of producing a heterologous polypeptide comprising expressing said heterologous polypeptide in a genetically modified Pichia of the invention. Also provided are heterologous polypeptide produced in anyone of the genetically modified Pichia of the present invention.

In yet another aspect of the present invention, isolated polynucleotides having at least 50%, 55%, 60%, 65%, 70%, 75%, 80%, 85%, 90%, 95%, 99%, and/or 100% sequence identity to SEQ ID NO:3, 5, and 7 are provided. In yet another aspect of the present invention, isolated polypeptides having at least 50%, 55%, 60%, 65%, 70%, 75%, 80%, 85%, 90%, 95%, 99%, and/or 100% sequence identity to SEQ ID NO:4, 6, and 8 are provided. Further embodiments include, genetically modified host cells wherein wild type parent of said genetically modified host cell comprises a gene encoding a polypeptide having at least 50%, 55%, 60%, 65%, 70%, 75%, 80%, 85%, 90%, 95%, 99%, and/or 100% sequence identity to SEQ ID NO:4, 6, 8 wherein said gene is genetically modified in the genome of said host cell such that the gene product is reduced or eliminated in said genetically modified host cell compared with said wild type host cell. Also provided are genetically modified host cells wherein said wild type parent of said genetically modified host cell comprises a gene having at least 50%, 55%, 60%, 65%, 70%, 75%, 80%, 85%, 90%, 95%, 99%, and/or 100% sequence identity to SEQ ID NO:3, 5, and 7 wherein said gene is genetically modified in the genome of said genetically modified host cell. The genetically modified host cell of the present invention have reduced or eliminated protease activity compared with said wild type parent host cell. The genetically modified host cell of the present invention have reduced or eliminated yeast methylotropic protease (Ympl) activity. In some instances, the host cell is Pichia.

In yet another aspect of the present invention, isolated polynucleotides having at least 50%, 55%, 60%, 65%, 70%, 75%, 80%, 85%, 90%, 95%, 99%, and/or 100% sequence identity to SEQ ID NO:9, 11 and 13 are provided. In yet another aspect of the present invention, isolated polypeptides having at least 50%, 55%, 60%, 65%, 70%, 75%, 80%, 85%, 90%, 95%, 99%, and/or 100% sequence identity to SEQ ID NO: 10, 12 and 14 are provided.

As is understood in the art, the enzymatic activity of one or more enzymes produced by host cells in culture can be affected by the growth conditions of the culture. For example, the proteolytic activity of a protease produced by a host cell in culture could be decreased by altering one or more of the following conditions: pH, dissolved oxygen, temperature, osmolarity, one or more media components, specific protease inhibitors, growth time and/or rate, cell concentration, duration of culture, and/or glucose feed rate (e.g., fed batch). Addition of complex protein hydrolysates to the culture may be especially effective at inhibition of proteolysis. Moreover, the conditions may be altered at one or more specific times during the culture in such a way as to maximize the effect. Similarly, glycosylation of proteins produced in culture can be affected by similar factors. Therefore, growth conditions for reducing enzymatic activity of a host cell, such as proteolytic or glycosylation activity, in culture can be optimized by adjusting one or more of the non-limiting factors listed above.

Also, as is understood in the art production of heterologous protein in a host cell may be increased by controlling many of the same factors noted above. In addition, the addition of factors that increase vector copy number, including, but not limited to, the addition of rapamycin to growth media, may also increase production. Other factors that may increase production include, but are not limited to, co- expression of one or more chaperon proteins, such as protein disulphide isomerase (PDI). Additionally, hemoglobin (HB) can be co-expressed with at least one heterologous polypeptide in a host cell to enhance oxygen availability for oxidative metabolism, thus, increasing polypeptide production.

Heterologous proteins that are secreted from a host cell during production may comprise a leader sequence which facilitates secretion. Leader sequences may be modified to improve secretion and therefore overall production and recovery of heterolgously expressed protein; for example different leader sequences from various secreted proteins may be operably linked to the heterologous protein and assessed for enhanced expression. Alternatively, a given leader sequence may be modified by site directed mutagenesis, or by means of a combinatorial library approach to identify an improved leader sequence variant. Chimeric leader sequences, comprising regions from two or more leader peptides, may be found to improve heterologous protein expression level.

Examples The following examples illustrate various non-limiting aspects of this invention.

Example 1 - Ympl Novel Proteases

A novel protease was identified from Pichia culture supernatant using affinity purification and LC/MS analysis. Figure 1 shows a novel Pichia yeast methylotropic protease (Ympl) identified on the gel. Clarified filtered supernatant from B378 (Pichia null strain) was incubated overnight with biotinylated aprotinin. The supernatant was loaded onto a 2 mL avidin column (Pierce) and washed with PBS. The column was eluted sequentially with 0. IM Tris, 2M Sodium chloride, pH7.5, then 0. IM Sodium acetate, 2M Sodium chloride, pH4.5 and finally Biotin Elution Buffer (Pierce). The eluates were concentrated and run on SDS-PAGE. The most prominent bands, Bands 1 and 2 were excised from the gel, reduced, alkylated and digested with trypsin in situ. The tryptic peptides from each band were analyzed by liquid chromatography-tandem mass spectrometry. Un-interpreted sequence data were searched against the Pichia contig-peptide database (Integrated Genetics) using Mascot protein identification software.

The peptides generated from both Bands 1 and 2 matched an open reading frame (ORF) in a Pichia genome database. The gene was isolated and sequenced, which contains an open reading frame of 5115 bp nucleotide acids (SEQ ID NO:3) encoding a novel protein of 1704 amino acids (SEQ ID NO:4). The predicted molecular weight of the entire protein is 185.8 KD. The polynucleotide sequence of this gene from Pichia (shown in SEQ ID NO:3) shares no significant homology with any sequence in GenBank. The encoding amino acid sequence contains two structure domains: the N-terminal domain (AA 1-865) shares 30.2% identities to Hypocrea lixii serine endopeptidease, and the C-terminal domain (AA 1305-1449) shares 48% identities to LPXTG-motif cell wall anchor domain protein from Lactobacillus reuteri. However, the full-length comparison of SEQ ID NO:4 and Hypocrea lixii serine endopeptidase shows only 14.8% identity using William Pearson's LALIGN program calculates a global alignment of two sequences version 2.2u (Myers and Miller, CABIOS (1989) 4: 11-17). The predicted structure for this protease is shown in Figure 2. Its C-terminal structure and sequence are unique among all serine protease of all species. The gene was named as yeast methylotropic protease (YMPl) since it is present in methyltrophic Pichia culture. It is a novel class of protease based on its unique structure. Ympl is one of the most abundant secreted proteins in Pichia methyltrophic culture medium based on a global analysis of Pichia culture supernatant using LC/MS (data not shown).

ATGTTCCTCA AAAGTCTCCT TAGTTTTGCG TCTATCCTAA CGCTTTGCAA GGCCTGGGAT CTGGAAGATG TACAAGATGC ACCAAAGATC AAAGGTAATG AAGTACCCGG TCGCTATATC ATTGAGTATG AAGAAGCTTC CACTTCAGCA TTTGCTACCC AACTGAGAGC TGGGGGATAT GACTTTAACA TCCAATACGA CTACTCAACT GGTTCCCTTT TCAACGGAGC ATCTGTTCAA ATCAGCAACG ATAACAAAAC CACTTTCCAG GATTTGCAAA GTTTGCGTGC AGTCAAAAAT GTTTACCCAG CTACTCTCAT TACATTAGAT GAAACATTTG AGCTTGCTGA CACGAAGCCA TGGAACCCTC ATGGAATTAC CGGTGTCGAT TCTTTGCATG AGCAAGGATA TACTGGTAGT GGTGTTGTTA TTGCAGTTAT CGATACTGGT GTTGACTATA CACACCCTGC TCTGGGTGGT GGTATCGGAG ATAATTTCCC TATCAAAGCT GGTTATGATT TGTCTTCCGG TGATGGTGTC ATCACGAATG ATCCTATGGA TTGTGACGGT CATGGTACCT TTGTATCCTC CATCATTGTT GCAAATAACA AAGATATGGT TGGTGTTGCA CCAGATGCTC AGATTGTCAT GTACAAAGTG TTCCCCTGTT CTGATAGTAC TTCGACTGAC ATAGTTATGG CGGGTATGCA AAAGGCCTAT GATGATGGTC ACAAGATTAT TTCGCTATCA CTGGGATCTG ACTCGGGGTT TTCCAGTACT CCAGCTTCCT TAATGGCCAG CAGGATTGCT CAAGACAGAG TTGTTTTGGT GGCTGCTGGT AACTCTGGAG AACTTGGTCC ATTCTATGCC TCCTCCCCTG CTTCTGGGAA ACAAGTCATT TCAGTTGGAT CTGTTCAAAA CGAACAATGG ACAACCTTTC CAGTAACCTT TACCTCTTCA AACGGTGAAT CAAGGGTTTT TCCTTACCTC GCTTACAATG GTGCACAGAT TGGATTTGAT GCCGAGCTTG AGGTTGATTT TACCGAAGAA AGAGGATGCG TCTATGAACC AGAGATCTCC GCAGATAATG CGAATAAAGC TATTTTGTTA AGAAGGGGCG TCGGCTGTGT TGAAAACTTG GAATTCAATT TATTGTCTGT GGCTGGTTAC AAGGCTTACT TCTTGTACAA CTCATTTTCA AGACCATGGA GTCTCTTGAA TATTTCTCCA CTGATTGAGC TAGACAACGC TTACTCTCTT GTTGAAGAGG AAGTTGGAAT ATGGGTGAAA ACCCAAATCG ACGCCGGTAA CACCGTCAAG TTAAAGGTGA GCACGAGTGA CCAAATGTTG CCATCTGATA AAGAGTATTT GGGAGTTGGA AAGATGGATT ATTACTCCTC TCAAGGACCT GCTTATGAGC TTGAATTTTT CCCAACGATA TCCGCTCCAG GTGGAGACAG TTGGGGCGCT TGGCCCGGTG GGCAATACGG TGTTGCCTCA GGAACAAGTT TTGCTTGCCC CTATGTTGCA GGTCTTACAG CTCTTTATGA ATCGCAGTTT GGAATTCAAG ATCCCCAGGA CTATGTGAGA AAATTAGTCT CCACAGCTAC CGATCTTCAA TTATTTGACT GGAACGCAGT GAAACTTGAG ACCTCTATGA ATGCTCCACT TATTCAACAG GGAGCTGGTC TAGTGAACGC TCTTGGTTTG TTTGAGACTA AGACTGTGAT CGTGTCTGCT CCTTATTTGG AGCTCAATGA CACCATCAAT AGAGCCAGTG AGTATACCAT TCAAATTAAG AATGAGAACT CTGAGACTAT TACCTATCAA GTTGTTCACG TTCCGGGAAC TACTGTCTAC TCTAGATCAG CTTCTGGGAA CATCCCATAC CTGGTCAATC AAGATTTTGC ACCTTACGGT GATAGTGATG CTGCGACAGT TGCTCTATCC ACAGAAGAGT TGGTTTTGGG ACCAGGAGAA GTTGGTGAAG TCACTGTGAT CTTCTCTACA GAAGAAATTG ATCAAGAAAC TGCTCCAATT ATTCAGGGTA AGATTACATT TTATGGTGAT GTCATACCGA TTGCTGTTCC TTATATGGGA GTTGAAGTTG ATATTCATTC CTGGGAGCCT CTCATTGAGA GGCCTTTATC AGTGAGAATG TATTTGGATG ATGGTTCCTT AGCATATGTT GATGATGATC CTGATTATGA GTTCAATGTG TATGACTGGG ATTCTCCTAG ATTTTATTTT AACCTGAGAT ATGCAACCAA AGAAGTATCG ATTGACTTGG TGCACCCTGA TTATAGCATT GAGAACGACT ACGAATGGCC TTTAGTTTCC GGACACAACA ACTATTATGG TCCCGTGGGA TACGACTACG ATTATACCTC GGGTCAAGCC TTTTTGCCTC GTTACTTTCA ACAACGTATT AACGAACTTG GATATCTTTC TTTTTCCAGA TTTGCTAACT TTTCTGTAGT TCCTGCTGGT GAATACAAAG CTCTATTTAG AGTTTTGCTA CCATATGGAG ACTTTTGGAA CAAAGAAGAC TGGCAATTGT TTGAATCCCC AGTGTTTAAC GTCCTCGCTC CACCGAATGA AGAAAACACT ACTGAAGAGC CAACTGAGGA ATCCAGCGAG GAGCCTACCG AAGAGTCAAC GTCTGAGTCA ACTGAAGAGC CCTCTTCTGA GTCAACTGAG AAATCTAGCG AGGTGCCAAC TGAAGAAATT ACTGAAGATG CAACATCCAC AATTGATGAT GATGAAGCAT CCACCGAAAG CTCTACTGAA GAACCAAGTG CTCAGCCCAC CGGTCCTTAC TCTGATTTGA CTGTCGGTGA GGCCATTACC GACGTTAGTG TCACCAGTTT GAGGACAACT GAAGCATTTG GATACACTTC CGACTGGTTG GTTGTGTCTT TCACTTTCAA CACTACTGAC AGAGATATTA CTCTCCCACC TTACGCTGTT GTACAAGTAA CTATCCCAAA TGAACTTCAA TTCATTGCTC ATCCAGAATA CGCCCCATAC CTTGAGCCCT CATTGCAAGT TTTCTACACT AAGAATGAAA GATTAATTAT GACTAGTCAG TTCAACTACG ACACCAGAGT CATCGACTTC AAGTTTGACA ATCGAGACCA AGTAATAACT CAAGTGGAGG GAGTTGTTTA TTTCACGATG AAACTAGAAC AAGATTTCAT TTCTGCATTG GCCCCAGGTG AATACGATTT TGAATTTCAT ACATCCGTTG ATTCTTATGC TTCGACCTTT GACTTTATTC CATTGATTAG ATCCGAGCCA ATCAAATTGA TAGCAGGTGC ACCAGACGAA GTTGAATGGT TTATTGATAT TCCAAGTGCA TACAGCGATT TGGCAACGAT AGATATTAGT TCTGATATCG ATACTAATGA TAATTTGCAG CAGTACTTCT ATGATTGCTC AAAGCTCAAG TACACTATTG GAAAAGAGTT TGATCAGTGG GGTAATTTTA CAGCTGGATC AGATGGTAAC CAATACAGCA ATACCACCGA TGGGTATGTT CCAATTACTG ATTCTACCGG CTCTCCAGTA GCTGAAGTTC AATGTTTAAT GGAAAGTATC TCATTGAGTT TCACAAATAC TCTTGCTGAG GATGAAGTAT TGAGAGTTGT TCTTCACTCT TCTGCGTTTA GACGTGGTTC ATTCACCATG GCCAACGTGG TAAACGTTGA CATTACAGCT GGTGGATTGG CAAAAAGAGA ACTCTTCTCT TATATATTGG ATGAAAATTA CTATGCTAGT ACTGGATCTG AGGGGTTGGC ATTTGACGTA TTTGAAGTTG CTGATCAGGT CGAGGAGCCA ACTGAGGAGT CAACCTCAGA GGAATCTACT GAACAGGAAA CTTCCACCGA GGAACCTACC GAGGAATCAA CTGAACCTAC TGAGGAATCT ACCCAGGAAC CTACTGAAGA GCCCACCGAC GAGCCTACTT CTGAGTCAAC TGAGGAACCT TCTGAGGAGC CAACTTCTGA CGATCTCTCA ATTGACCCAA CTGCTGTACC TACCGATGAA CCTACTGAAG AGCCAACTGA GGAGCCTACT TCTGAGTCAA CTGAGGAACC TTCTGAGGAG CCAACTTCTG ACGATCTCTC AATTGACCCA ACTGCTGTAC CTACCGATGA ACCTACTGAA GAGCCAACTG AGGAGCCTAC TTCTGAGTCA ACTGAGGAAC CTTCTGAGGA GCCAACTTCT GACGATCTCT CAATTGACCC AACTGCTGTA CCTACCGATG AACCTACTGA AGAGCCAACT GAGGAGCCGA CCTCTGAGAC TACCGATGAT CCATCGATAG CACCTACTGC TGTGCCAACT TCCGACACAT CTTCTGGACA ATCGGTGGTT ACTCAAAACA CTACAGTCAC TCAGACTACC ATCACTTCAG TCTGTAATGT TTGTGCTGAG ACCCCTGTAA CAATCACTTA CACTGCACCA GTTGTGACTA AGCCAGTTTC TTACACCACC GTTACTTCAG TTTGCCATGT ATGTGCAGAG ACACCAATCA CAGTTACCTT GACGTTGCCA TGTGAAACCG AAGACGTGAC AAAGACTGCC GGCCCTAAGA CTGTCACTTA CACCGAAGTT TGCAACTCCT GTGCTGACAA GCCTATCACT TACACCTACA TCGCTCCAGA GTACACTCAA GGTGCCGAAC GTACAACAGT TACATCGGTT TGCAACGTTT GTGCTGAGAC ACCTGTAACG CTAACATACA CTGCGCCGAA AGCCAGTCGT CATACAGTTC CTTCACAATA TTCAAGTGCC GGAGAGCTCA TTTCATCCAA GGGGATCACG ATTCCTACTG TTCCTGCCCG TCCAACTGGT ACTTATAGTA AGTCTGTTGA CACTAGCCAA CGTACACTCG CTACCATTAC AAAATCTTCA GATGAGTCTA ACACTGTTAC CACTACTCAA GCCACACAAG TTTTGAGCGG TGAATCCAGT GGAATTCAAG CTGCTTCAAA CAGCACGAGC ATCTCAGCTC CAACTGTCAC TACAGCTGGG AACGAGAACT CTGGATCTAG ATTTTCGTTT GCTGGACTAT TCACAGTTCT GCCTCTTATC TTGTTCGTTA TATAA(SEQ ID NO: 3)

The polypeptide sequence encoded by the gene sequence of SEQ ID NO:3 is presented below as SEQ ID NO:4.

MFLKSLLSFA SILTLCKAWD LEDVQDAPKI KGNEVPGRYI IEYEEASTSA FATQLRAGGY DFNIQYDYST GSLFNGASVQ ISNDNKTTFQ DLQSLRAVKN VYPATLITLD ETFELADTKP WNPHGITGVD SLHEQGYTGS GVVIAVIDTG VDYTHPALGG GIGDNFPIKA GYDLSSGDGV ITNDPMDCDG HGTFVSSIIV ANNKDMVGVA PDAQIVMYKV FPCSDSTSTD IVMAGMQKAY DDGHKIISLS LGSDSGFSST PASLMASRIA QDRVVLVAAG NSGELGPFYA SSPASGKQVI SVGSVQNEQW TTFPVTFTSS NGESRVFPYL AYNGAQIGFD AELEVDFTEE RGCVYEPEIS ADNANKAILL RRGVGCVENL EFNLLSVAGY KAYFLYNSFS RPWSLLNISP LIELDNAYSL VEEEVGIWVK TQIDAGNTVK LKVSTSDQML PSDKEYLGVG KMDYYSSQGP AYELEFFPTI SAPGGDSWGA WPGGQYGVAS GTSFACPYVA GLTALYESQF GIQDPQDYVR KLVSTATDLQ LFDWNAVKLE TSMNAPLIQQ GAGLVNALGL FETKTVIVSA PYLELNDTIN RASEYTIQIK NENSETITYQ WHVPGTTVY SRSASGNIPY LVNQDFAPYG DSDAATVALS TEELVLGPGE VGEVTVIFST EEIDQETAPI IQGKITFYGD VIPIAVPYMG VEVDIHSWEP LIERPLSVRM YLDDGSLAYV DDDPDYEFNV YDWDSPRFYF NLRYATKEVS IDLVHPDYSI ENDYEWPLVS GHNNYYGPVG YDYDYTSGQA FLPRYFQQRI NELGYLSFSR FANFSWPAG EYKALFRVLL PYGDFWNKED WQLFESPVFN VLAPPNEENT TEEPTEESSE EPTEESTSES TEEPSSESTE KSSEVPTEEI TEDATSTIDD DEASTESSTE EPSAQPTGPY SDLTVGEAIT DVSVTSLRTT EAFGYTSDWL VVSFTFNTTD RDITLPPYAV VQVTIPNELQ FIAHPEYAPY LEPSLQVFYT KNERLIMTSQ FNYDTRVIDF KFDNRDQVIT QVEGWYFTM KLEQDFISAL APGEYDFEFH TSVDSYASTF DFIPLIRSEP IKLIAGAPDE VEWFIDIPSA YSDLATIDIS SDIDTNDNLQ QYFYDCSKLK YTIGKEFDQW GNFTAGSDGN QYSNTTDGYV PITDSTGSPV AEVQCLMESI SLSFTNTLAE DEVLRWLHS SAFRRGSFTM ANWNVDITA GGLAKRELFS YILDENYYAS TGSEGLAFDV FEVADQVEEP TEESTSEEST EQETSTEEPT EESTEPTEES TQEPTEEPTD EPTSESTEEP SEEPTSDDLS IDPTAVPTDE PTEEPTEEPT SESTEEPSEE TSDDLSIDPT AVPTDEPTEE PTEEPTSEST EEPSEEPTSD DLSIDPTAVP TDEPTEEPTE EPTSETTDDP SIAPTAVPTS DTSSGQSWT QNTTVTQTTI TSVCNVCAET PVTITYTAPV VTKPVSYTTV TSVCHVCAET PITVTLTLPC ETEDVTKTAG PKTVTYTEVC NSCADKPITY TYIAPEYTQG AERTTVTSVC NVCAETPVTL TYTAPKASRH TVPSQYSSAG ELISSKGITI PTVPARPTGT

YSKSVDTSQR TLATITKSSD ESNTVTTTQA TQVLSGESSG IQAASNSTSI SAPTVTTAGN

ENSGSRFSFA GLFTVLPLIL FVI. (SEQ ID NO: 4)

Example 2 - Novel Proteases

Two additional novel yeast methylotropic proteases (Ymp2 and Ymp3) were identified using similar affinity purification and LC/MS analysis as described in Example 1 from supernatant oia Pichiaympl knockout strain (see Example 3). Clarified filtered supernatant from B580 (Pichia ympl deletion strain) was incubated overnight with biotinylated AEBSF (4-(2-Aminoethyl) benzenesulfonyl fluoride hydrochloride). The supernatant was loaded onto a 10 mL avidin column (Pierce) and washed with PBS. The column was eluted sequentially with 0. IM Tris, 2M Sodium chloride, pH7.5, then 0.1M Sodium acetate, 2M Sodium chloride, pH4.5 and finally Biotin Elution Buffer (Pierce). The eluates were denatured by adding 8 M urea, and the Cys residues were reduced by reaction with 20 mM dithiothreitol (DTT) and then alkylated by reaction with 20 mM iodoacetamide. After diluting the sample to 2 M urea with 100 mM ammonium bicarbonate (pH 8.5), proteins were digested by trypsin (Sequencing grade modified trypsin, Promega, Madison, WI). The resulted peptides mixture from the digestion was desalted with a PepClean spin column (Pierce,

Rockford, IL), and analyzed by a LC-MS/MS system, in which a high pressure liquid chromatography (HPLC) with a 75 micrometer inner diameter reverse phase C18 column was on-line coupled with an ion trap mass spectrometer (Thermo, Palo Alto, CA). The mass spectrometric data acquired from LC-MS/MS analysis were used to search against the recent Non-Redundant Protein Database from GenBank as well as Pichia database (Integrated Genetics) using Mascot protein identification software. Through peptide matches, two genes, named YMP2 and YMP 3 were identified to share homologies with known proteases. YMP2 contains an open reading frame of 618 bp nucleotide acids (SEQ ID NO:5) encoding a novel protein of 205 amino acids (SEQ ID NO:6). The predicted molecular weight of the entire protein is 22.9 KD. The polynucleotide sequence of this gene from Pichia (shown in SEQ ID NO:5) shares no significant homology with any sequence in GenBank. However, the encoding amino acid sequence shares 29% identities to the Arginine/Alanine aminopeptidase from Pichia pastoris.

ATGGCTCCCA GAACACTACC AGAAGACTTA ATTCCCTCCC TATACGACTT GCACATCTAC AACTTCCAAC CCGAAAAAAA GACTTATGAT GGAGACATTG TCATCCACTT GGAGGTGAAG GAGCCCACTG ATGAAGTGGT CTTCAATGCC AAGGATTTGG AATTGAAAGA CGTACATGTC TTCCACAATG TCAACAAGTC TGAAAACGAA ATCCCCGTTA AGGAGATTGT TGATAACGAG CTCATCACAA TTAAGCTCAA AGAGAAGGTT ACTTCCGGAA CGTTGCTGGT GAATATTTCC TTCACCGGTA ACATTCAATC TGATAAAATT GGATTTTACA AGGGAGACAC AGATGTGGAA GGAAGAGTCA CATACACTAC AAACCTTACC ACTCCAAATG CCAGGTTGGC ATTCCCATGT CTTGATAACA TATTGTTGAA AGCTCCATTC AAGTTCGGAG TAACTGCCAA TCCAGGACAA TTAGTGAGTT CCATTTTGGA TCTAAGCTCT GAGGCTGACG TCTTGAATGA CAATGACGAT GTGATTGGTA CGAGATACCA ATACCAAGTG AGTGAGCCAA TAGCCCCAGC TTTACTGGAG TGGACCATTC ATATTTAA (SEQ ID NO: 5)

The polypeptide sequence encoded by the gene sequence of SEQ ID NO:5 is presented below as SEQ ID NO:6.

MAPRTLPEDL I PSLYDLHIY NFQPEKKTYD GDIVIHLEVK EPTDEWFNA KDLELKDVHV FHNVNKSENE IPVKEIVDNE LITIKLKEKV TSGTLLVNIS FTGNIQSDKI GFYKGDTDVE

GRVTYTTNLT TPNARLAFPC LDNILLKAPF KFGVTANPGQ LVSSILDLSS EADVLNDNDD

VIGTRYQYQV SEPIAPALLE WTIHI (SEQ ID NO: 6)

YMP3 contains an open reading frame of 1233 bp nucleotide acids (SEQ ID NO:7) encoding a novel protein of 410 amino acids (SEQ ID NO:8). The predicted molecular weight of the entire protein is 46.0 KD. Its amino acid sequence shares 47% identities to leucine aminopeptidase from Pichia stipitis.

ATGGTCAAAC TCATATCAAT TATAGCCCTA GTTCAACTTG TCTCTGCGAC AATTGTACCT TGGAATCTCC AGAACGTCTT ATCTGACGTC CATCACCCTT CTCTCCATCT CTTGGATTAT

ATTCAATCCT TGAAGAACGA GGTAATGTTC GATGGCGACG ATCGCAGAAT AATCAAGTTA

GGCCCCCAAG AATACCGTAT TATCACTGAA AAAGAGAAAT ACCAGTTGAA AACAGAGGGG

ATATCATTTA TCGATGTCAC CTATCAGCAT GGAGACAATG TAGAGCTGCT CTATTCCAGT

GCGCCAGTTA CCGTTCCAGA CTATCTTTAT CCGTCCAATG ATACTTTCCA TTTCAAACAA GTAAATTCTT TGATAGGTGA GATTGACATT GGCAGAATGC AGGCGTTTTT GGGAAGGTTC

TCTAGCTTCT TTACAAGATT TTACAAATCT GACAAGGGGT TGCAGAGTTC TATCTGGTTA CAAGGTGAAT TGGTTCAATT GGCCTTGAAA GATCCATCGA GGTTCAATGT TACTACTGTG GAACACCCTT GGAAGCAGAA TTCTGCCATC TTTACGATAT ACGGTGAAAA TGTTGATCCT TCGAAAGGAA AAGGGGACAT TGTAGTAGTG GGATGCCATC AAGATTCCAT AAACTTGCTT TTCCCCAACA TTCTCCGTGC TCCAGGGGCT GATGATGATG GATCTGGTGT AACTTCCAAC CTTGAAGCGC TCAGAATCAT AGTTGAAAGT GGCCTCAAGT TTCACAATAC AGTAGAGTTT CACTTTTATT CTGCCGAAGA AGGAGGACTA CTTGGCTCCC AGCAAATTTT CAGCTCGTAT AGAGCTGCAG AAGAGACTGT TGTTGCTATG CTACAACAGG ACATGACTGG ATACATCCAA AAAGCTTTAG ACCACGGGGA ATCCGACCAC TTCGGGCTAA TCACTGACCA TACAAACGCA AATCTGAATA GCTTCCTTGC ACTTTTAATC GATGCATACA CTTCAATTCC CTACAAAGAA ACCGAATGTG GGTATGCCTG CTCAGATCAT AGTTCTGCCT TGGAACATGG TTATCCATCT GCCATGGTCT TTGAAAGTAG TTTTGCCTAC ACAAATCCCT TCATCCATAG CACCCAAGAC ACAATTGACA AGATCAATTT TCCACATATG GCAGAGCAT GTCAAGTTGG TCCTGGGTTA CGTTGTAGAG TTGGGATTAG AACATTTTAG GTGA (SEQ ID NO: 7)

The polypeptide sequence encoded by the gene sequence of SEQ ID NO:7 is presented below as SEQ ID NO: 8.

MVKLISIIAL VQLVSAT IVP WNLQNVLSDV HHPSLHLLDY IQSLKNEVMF DGDDRRIIKL GPQEYRIITE KEKYQLKTEG ISFIDVTYQH GDNVELLYSS APVTVPDYLY PSNDTFHFKQ

VNSLIGEIDI GRMQAFLGRF SSFFTRFYKS DKGLQSSIWL QGELVQLALK DPSRFNVTTV

EHPWKQNSAI FTIYGENVDP SKGKGDIWV GCHQDSINLL FPNILRAPGA DDDGSGVTSN

LEALRIIVES GLKFHNTVEF HFYSAEEGGL LGSQQIFSSY RAAEETVVAM LQQDMTGYIQ

KALDHGESDH FGLITDHTNA NLNSFLALLI DAYTSIPYKE TECGYACSDH SSALEHGYPS AMVFESSFAY TNPFIHSTQD TIDKINFPHM AEHVKLVLGY VVELGLEHFR (SEQ ID NO: 8)

Additionally, three other potential proteases were identified using all known yeast proteases against Pichia database. The identified polynucleotide sequences encoding these proteases and their respective polypeptide sequences are presented in SEQ ID NOs: 9-14 below.

ATGAAATCGG TTATTTGGAG CCTTCTATCT TTGCTAGCAT TGTCGCAGGC ATTGACTATT CCATTGCTGG AAGAGCTTCA ACAGCAAACA TTTTTTAGCA AGAAAACCGT TCCTCAACAA GTTGCTGAAT TGGTGGGCAC CCATTACTCT AAGGATGAGA TAATCAGTCT ATGGAAGGAC ATTGAGCTGG ATGTACCCAG GGAAAAGATC CAAGAGGCCT TCGATAAGTT CGTAAAACAA TCAACTGCCA CTTCCCCCGT TAGAAATGAA TTTCCCTTGT CTCAGCAAGA TTGGGTGACA GTGACCAACA CCAAGTTTGA TAATTATCAA TTGAGGGTTA AAAAATCCCA CCCTGAAAAG CTAAACATTG ATAAGGTAAA GCAATCTTCG GGATACCTGG ATATCATTGA TCAAGATAAG CATCTTTTCT ATTGGTTTTT TGAATCCCGA AATGATCCGT CCACAGACCC AATCATCCTA TGGTTGAATG GTGGACCCGG CTGCTCTTCT ATTACAGGGT TGCTATTCGA AAAGATTGGC CCCAGTTACA TCACCAAAGA GATTAAGCCG GAACATAATC CTTATTCATG GAACAACAAT GCTAGTGTTA TCTTCCTTGA GCAACCGGTT GGAGTAGGAT TTTCTTACTC TTCTAAGAAA GTCGGTGATA CTGCAACTGC TGCCAAAGAT ACATATGTGT TTTTGGAGCT TTTCTTCCAA AAGTTTCCTC AGTTCCTGAC CTCTAATCTG CACATTGCTG GGGAATCGTA TGCTGGCCAT TATTTGCCCA AGATTGCTTC TGAGATTGTG TCTCACGCAG ACAAGACGTT TGACCTTTCA GGAGTCATGA TCGGTAATGG TCTTACTGAT CCTCTAATTC AGTATAAGTA CTATCAGCCA ATGGCCTGTG GAAAAGGTGG CTACAAGCAG GTCATTTCGG ACGAGGAATG TGATGAATTG GATAGGGTCT ATCCAAGATG TGAACGTTTA ACGCGGGCAT GTTATGAGTT CCAAAATTCA GTTACTTGTG TTCCGGCAAC ACTTTATTGC GACCAAAAGC TACTGAAGCC GTACACTGAC ACTGGCTTGA ATGTCTATGA TATTCGTACA ATGTGCGATG AAGGGACTGA TTTGTGTTAC AAAGAACTGG AATACGTGGA GAAGTACATG AACCAGCCTG AAGTGCAGGA AGCCGTGGGC TCTGAAGTCA GTTCTTACAA AGGTTGTGAC GATGATGTCT TCTTAAGATT TTTGTACTCT GGCGATGGAT CTAAGCCTTT CCACCAGTAT ATCACGGATG TTCTCAATGC AAGTATTCCG GTTCTGATTT ACGCAGGTGA TAAAGATTAT ATCTGTAATT GGCTAGGAAA CCAAGCTTGG GTCAATGAGC TAGAATGGAA CTTGTCTGAG GAATTCCAGG CAACTCCGAT TCGACCGTGG TTCACTTTGG ACAATAACGA TTATGCAGGA AACGTACAAA CTTATGGAAA CTTTTCCTTT CTAAGAGTAT TTGATGCTGG TCACATGGTT CCTTACAATC AACCAGTCAA CGCACTTGAC ATGGTTGTCA GATGGACACA CGGTGATTTC TCATTTGGTT ATTAA (SEQ ID: 9) MKSVIWSLLS LLALSQALTI PLLEELQQQT FFSKKTVPQQ VAELVGTHYS KDEIISLWKD

IELDVPREKI QEAFDKFVKQ STATSPVRNE FPLSQQDWVT VTNTKFDNYQ LRVKKSHPEK

LNIDKVKQSS GYLDIIDQDK HLFYWFFESR NDPSTDPIIL WLNGGPGCSS ITGLLFEKIG

PSYITKEIKP EHNPYSVJNNN ASVIFLEQPV GVGFSYSSKK VGDTATAAKD TYVFLELFFQ

KFPQFLTSNL HIAGESYAGH YLPKIASEIV SHADKTFDLS GVMIGNGLTD PLIQYKYYQP MACGKGGYKQ VISDEECDEL DPVYPRCERL TRACYEFQNS VTCVPATLYC DQKLLKPYTD

TGLNVYDIRT MCDEGTDLCY KELEYVEKYM NQPEVQEAVG SEVSSYKGCD DDVFLRFLYS

GDGSKPFHQY ITDVLNASIP VLIYAGDKDY ICNWLGNQAW VNELEWNLSE EFQATPIRPW

FTLDNNDYAG NVQTYGNFSF LPVFDAGHMV PYNQPVNALD MWRWTHGDF SFGY (SEQ ID No : 10 )

ATGATATTAC ACACCTATAT TATTCTCTCG TTATTGACTA TATTTCCTAA AGCTATTGGT CTGTCCTTGC AGATGCCAAT GGCCTTGGAA GCTAGTTATG CCTCATTAGT GGAGAAAGCA ACCCTCGCTG TTGGACAAGA AATTGATGCC ATACAAAAGG GTATTCAGCA AGGTTGGTTG GAAGTAGAGA CAAGATTTCC AACTATAGTG TCACAGTTAT CCTATAGTAC TGGCCCAAAA TTTGCGATCA AGAAGAAAGA TGCAACTTTT TGGGATTTCT ATGTTGAAAG TCAAGAGTTG CCAAACTACC GAATTAATGA AAATCTGAAA CCAATTTTCA ACCCCTATTC GTGGAATGGT AATGCTTCAA TCATCTACTT AGATCAACCG GTCAATGTTG GGTTTTCTTA TTCTTCATCA TCGGTGAGTA ACACTGTTGT TGCGGGAGAA GATGTGTATG CATTTCTTCA GCTTTTTTTT CAACACTTCC CGGAATATCA AACTAATGAC TTTCATATTG CCGGTGAATC TTATGCAGGA CATTACATTC CGGTGTTTGC AGACGAAATT TTGAGTCAAA AGAACAGAAA TTTCAATCTT ACTTCAGTCT TGATCGGAAA TGGATTAACT GACCCTTTGA CTCAATACCG ATATTACGAG CCAATGGCTT GTGGTGAAGG TGGTGCCCCG TCAGTACTGC CTGCCGATGA GTGCGAAAAT ATGCTAGTTA CCCAAGATAA ATGTTTGTCT TTAATTCAAG CATGCTACGA CTCACAGTCG GCATTCACAT GCGCACCGGC TGCCATTTAT TGTAATAACG CTCAGATGGG ACCCTATCAG AGAACTGGGA AGAATGTGTA TGATATTCGT AAGGAATGTG ATGGTGGATC CTTGTGCTAT AAGGACCTTG AATTCATCGA TACCTACTTA AATCAAAAGT TTGTTCAAGA TGCTTTGGGC GCCGAGGTCG ATACCTATGA ATCTTGCAAT TTTGAAATCA ACAGAAACTT TTTATTTGCT GGAGATTGGA TGAAACCTTA TCATGAACAT GTCAGCAGTC TCTTGAACAA AGGTTTGCCC GTTTTGATTT ACGCAGGGGA CAAAGATTTC ATTTGCAACT GGTTGGGTAA TCGAGCATGG ACTGATGTCT TGCCGTGGGT TGATGCTGAT GGTTTTGAAA AAGCCGAAGT CCAAGATTGG TTGGTTAATG GAAGGAAGGC TGGTGAATTT AAGAACTATA GCAACTTCAC CTACCTAAGG GTTTATGATG CTGGTCATAT GGCCCCATAT GATCAGCCAG AGAATTCTCA TGAAATGGTC AATAGATGGA TATCCGGAGA CTTTAGCTTT CACTAG (SEQ ID No: 11) MILHTYIILS LLTIFPKAIG LSLQMPMALE ASYASLVEKA TLAVGQEIDA IQKGIQQGWL EVETRFPTIV SQLSYSTGPK FAIKKKDATF WDFYVESQEL PNYRINENLK PIFNPYSWNG

NASIIYLDQP VNVGFSYSSS SVSNTWAGE DVYAFLQLFF QHFPEYQTND FHIAGESYAG

HYIPVFADEI LSQKNRNFNL TSVLIGNGLT DPLTQYRYYE PMACGEGGAP SVLPADECEN MLVTQDKCLS LIQACYDSQS AFTCAPAAIY CNNAQMGPYQ RTGKNVYDIR KECDGGSLCY KDLEFIDTYL NQKFVQDALG AEVDTYESCN FEINRNFLFA GDWMKPYHEH VSSLLNKGLP VLIYAGDKDF ICNWLGNRAW TDVLPWVDAD GFEKAEVQDW LVNGRKAGEF KNYSNFTYLR VYDAGHMAPY DQPENSHEMV NPWISGDFSF H (SEQ ID No: 12)

ATGCAATTGC GTCATTCCGT TGGATTGGCT ATCTTATCTG CCATAGCAGT CCAAGGATTG CTAATTCCTA ACATTGAGTC ATTACCCAGC CAGTTTGGTG CTAATGGTGA CAGTGAACAA

GGTGTATTAG CCCACCATGG TAAACATCCT AAAGTTGATA TGGCTCACCA TGGAAAGCAT

CCTAAAATCG CTAAGGATTC CAAGGGACAC CCTAAGCTTT GCCCTGAAGC TTTGAAGAAG

ATGAAAGAAG GCCACCCTTC GGCTCCAGTC ATTACTACCC ATTCCGCTTC TAAAAACTTA

ATCCCTTACT CTTATATTAT AGTCTTCAAG AAGGGTGTCA CTTCAGAGGA TATCGACTTC CACCGTGACC TTATCTCCAC TCTTCATGAA GAGTCTGTGA GCAAATTAAG AGAGTCAGAT

CCAAATCACT CATTTTTCGT TTCTAATGAG AATGGCGAAA CAGGTTACAC CGGTGACTTC

TCCGTTGGTG ACTTGCTCAA GGGTTACACC GGATACTTCA CGGATGACAC TTTAGAGCTT

ATCAGTAAGC ATCCAGCAGT TGCTTTCATT GAAAGGGATT CGAGAGTATT TGCCACCGAT

TTTGAAACTC AAAACGGTGC TCCTTGGGGT TTGGCCAGAG TCTCTCACAG AAAGCCTCTT TCCCTAGGCA GCTTCAACAA GTACTTATAT GATGGAGCTG GTGGTGAAGG TGTTACTTCC

TATGTTATCG ATACAGGTAT CCACGTCACT CACAAAGAAT TCCAGGGTAG AGCATCTTGG GGTAAGACCA TTCCAGCTGG AGACGTTGAT GACGATGGAA ACGGTCACGG AACTCACTGT GCTGGTACCA TTGCTTCTGA AAGCTACGGT GTTGCCAAGA AGGCTAATGT TGTTGCCATC AAGGTCTTGA GATCTAATGG TTCTGGTTCG ATGTCAGATG TTCTGAAGGG TGTTGAGTAT GCCACCCAAT CCCACTTGGA TGCTGTTAAA AAGGGCAACA AGAAATTTAA GGGCTCTACC GCTAACATGT CACTGGGTGG TGGTAAATCT CCTGCTTTGG ACCTTGCAGT CAATGCTGCT GTTAAGAATG GTATTCACTT TGCCGTTGCA GCAGGTAACG AAAACCAAGA TGCTTGTAAC ACCTCGCCAG CAGCTGCTGA GAATGCCATC ACCGTCGGTG CATCAACCTT ATCAGACGCT AGAGCTTACT TTTCTAACTA CGGTAAATGT GTTGACATTT TCGCTCCAGG TTTAAACATT CTTTCTACCT ACACTGGTTC GGATGACGCA ACTGCTACCT TGTCTGGTAC TTCAATGGCC TCTCCTCACA TTGCTGGTCT GTTGACTTAC TTCCTATCAT TGCAGCCTGC TGCTGGATCT CTGTACTCTA ACGGAGGATC TGAGGGTGTC ACACCTGCTC AATTGAAAAA GAACCTCCTC AAGTATGCAT CTGTCGGAGT ATTAGAGGAT GTTCCAGAAG ACACTCCAAA CCTCTTGGTT TACAATGGTG GTGGACAAAA CCTTTCTTCT TTCTGGGGAA AGGAGACAGA AGACAATGTT GCTTCCTCCG ACGATACTGG TGAGTTTCAC TCTTTTGTGA ACAAGCTTGA ATCAGCTGTT GAAAACTTGG CCCAAGAGTT TGCACATTCA GTGAAGGAGC TGGCTTCTGA ACTTATTTAG (SEQ ID No:13)

MQLRHSVGLA ILSAIAVQGL LIPNIESLPS QFGANGDSEQ GVLAHHGKHP KVDMAHHGKH PKIAKDSKGH PKLCPEALKK MKEGHPSAPV ITTHSASKNL IPYSYIIVFK KGVTSEDIDF HRDLISTLHE ESVSKLRESD PNHSFFVSNE NGETGYTGDF SVGDLLKGYT GYFTDDTLEL ISKHPAVAFI ERDSRVFATD FETQNGAPWG LARVSHRKPL SLGSFNKYLY DGAGGEGVTS YVIDTGIHVT HKEFQGRASW GKTIPAGDVD DDGNGHGTHC AGTIASESYG VAKKANWAI KVLRSNGSGS MSDVLKGVEY ATQSHLDAVK KGNKKFKGST ANMSLGGGKS PALDLAVNAA VKNGIHFAVA AGNENQDACN TSPAAAENAI TVGASTLSDA RAYFSNYGKC VDIFAPGLNI LSTYTGSDDA TATLSGTSMA SPHIAGLLTY FLSLQPAAGS LYSNGGSEGV TPAQLKKNLL KYASVGVLED VPEDTPNLLV YNGGGQNLSS FWGKETEDNV ASSDDTGEFH SFVNKLESAV ENLAQEFAHS VKELASELI (SEQ ID No: 14)

Example 3 - Protease Knockouts Several Pichia knockout strains were generated by the following methods.

The 5' end the gene to be knocked out (200-500 bp) was amplified from Pichia genomic DNA by PCR using a 5' gene specific primer and a 3' gene specific primer with a 20 bp sequence complementary to the 5' end of selection marker expression cassette, e.g. KanMX. The 3' end the gene to be knocked out (200-500 bp) was also amplified from Pichia genomic DNA by PCR using a 5' gene specific primer with a 20 bp sequence complementary to the 3' end of KanMX expression cassette and a 3' gene specific primer. In a separate PCR reaction, a proper amount of 5' product, 3 ' product, DNA containing KanMX expression cassette, and the 5' and 3' gene specific primers used before were added to make a knockout cassette which has the KanMX expression cassette flanking 5' and 3' homologous regions of the knockout gene. The DNA fragment was purified and transformed into Pichia using a standard electroporation method. The recombinant cells were selected on the YPD plates containing an antibiotic, e.g. KAN, and screened by PCR using specific primers. The resulting knockout strains were confirmed by genomic sequencing and Southern blot analysis. Single and multiple knockouts were then transformed with DNA capable of expressing a heterologous polypeptide. Each knockout strain was transformed with at least one vector encoding the therapeutic protein described by SEQ ID NO: 1. Cultures of transformed knockouts were grown and supernatants were harvested. Secreted products were run on NuPAGE MOPS gels for detection of product breakdown by proteolysis. Multiple bands of semi-purified heterologous protein were interpreted to indicate protease activity while a single band of heterologous protein at the appropriate molecular weight was interpreted as no protease activity. See Figure 5-8. Protease activity in fermentation supernatant samples was measured using a synthetic peptide with a fluorescent label and quencher with excitation and emission wavelengths of 340 and 405nm respectively. The peptide substrate was incubated with culture supernatant samples and the rate of degradation of the substrate was monitored using fluorescent HPLC. Results are expressed as increase in peak area/hr. In Figure 3, protease activity in the fermentation supernatant was around 68-285 in ympl mutant strain, while the protease activity in the control strain was around 1541- 1909. Accordingly, the mutant strain demonstrated a dramatic reduction of protease activity on the peptide.

Zymogram gel is another method to measure protease activity using casein or gelatin as substrates. In this experiment, fermentation samples were separated on acrylamide gels with either casein or gelatin incorporated into the matrix under reducing, non-denatured conditions. Following separation, the protein bands were renatured and a developing buffer was applied to provide the necessary cofactors for protease activity. The gel was incubated at 37⁰C for an extended period and then stained with coomassie blue. Areas of proteolytic activity were identified as clear areas on the gel against a blue background. The active proteases degraded the substrate not allowing the area on the gel to bind the coomassie blue. Areas on the gel lacking active protease allowed the stain to bind to the substrate, thus generating the blue background. Figure 4 showed the protease active areas using fermentation supernatants from ympl mutant strains and two control strains. The control strains had active proteases that migrated both at high and low molecular weight areas. However, the signals at the high molecular weight area were greatly diminished or missing in ympl mutant strains. These data show that the activities at the high molecular weight areas could be due to the action oiympl. Summary results for knockouts are presented in Table 5.

Further studies using buffer stability assay demonstrated the cleavage efficiency and site changes when YMPl and YPSl were deleted from the Pichia host strains. In this assay, the protein standard described by SEQ ID NO: 1 was incubated with the culture supernatants and the cleaved protein products were analyzed by mass spectrophotometry to indicate the cleavage sites and percentage of cleavage products (Table 1-4).

Using the supernatant of the fermentation broth B 804 (parental strain SMD 1163 with pmt4 deletion, see Example 4), 5 major cleavage sites were detected: Lys28/Gly29, Phe36/Thr37, Ser38/Asp39, Tyr43/Leu44 and L_ys50/Glu51 (Table 1). Table 1: Fermentation broth B804 of SMD1163_pmf4 (1:40)

Deletion of the YMPl from SMDl \63 j)mp4 (B688) diminished the cleavage sites of Phe36/Thr37, Ser38/Asp39 and Tyr43/Leu44, but maintained or increased the cleavage at Lys50/Glu51 and Lys28/Gly29 (Table 2).

Table 2: Fermentation broth B688 of ympl KO strain of SMD1163_pmf4 (1:40)

Deletion of the ypsl protease from SMDl 163 _pmt4 (B805) did not remove any cleavage sites but decreases the amount cleaved at the Lys50/Glu51site (Table 3).

Table 3: Fermentation broth B805 of ypsl KG strain of SMD1163_pmf4 (1:40)

Sequence O hr 24 hr 48 hr 5 day

Hisl-Leu645 100 73.6 37.3 6

(Trp)Leu26-Leu645 0 1.6 1.9 2.3

(Leu)Val27-Leu645 0 0 0 0

(Lys)Gly29-Leu645 0 4.9 5.6 2.7

(Phe)Thr37-Leu645 0 10 27.1 41

(Thr)Ser38-Leu645 0 0 0 0

(Ser)Asp39-Leu645 0 5.5 16 28

(Val)Ser41-Leu645 0 0 0 0

(Ser)Ser42-Leu645 0 1 2.6 4.2

(Tyr)Leu44-Leu645 0 2.3 5.6 9

(Lys)Glu51-Leu645 0 1.1 2 3.1

(Ala)Trp55-Leu645 0 0 1.9 3.8

(Trp)Leu56-Leu645 0 0 0 0 When Ympl and Ypsl proteases were both deleted from SMDl 163 _pmt4 (B803), the cleavage was significantly reduced and only occurred at Lys28/Gly29 (Table 4)

Table 4: Fermentation broth B803 of ympl/ypsl KO strain of SMD1163_pmt4 (1:40)

Sequence O hr 24 hr 48 hr 5 day

Hisl-Leu645 100 94.5 89.4 73.1

(Trp)Leu26-Leu645 0 0 0 0

(Leu)Val27-Leu645 0 0 0 0

(Lys)Gly29-Leu645 0 5.5 10.6 26.9

(Phe)Thr37-Leu645 0 0 0 0

(Thr)Ser38-Leu645 0 0 0 0

(Ser)Asp39-Leu645 0 0 0 0

(Val)Ser41-Leu645 0 0 0 0

(Ser)Ser42-Leu645 0 0 0 0

(Tyr)Leu44-Leu645 0 0 0 0

(Lys)Glu51-Leu645 0 0 0 0

(Ala)Trp55-Leu645 0 0 0 0

(Trp)Leu56-Leu645 0 0 0 0

Individual knockout oiymp2,ymp3 was made in SMDl 163. Shake flask inductions were performed on these knockout strains as well as SMDl 163 control and culture supernatants samples were taken at 24 hours post induction. Protein standard described by SEQ ID NO: 1 was incubated with these samples at 3O⁰C for 24 hour and analyzed by SDS PAGE gel.

From the PAGE analysis the deletion of ymp3 significantly decreased cleavage of the protein standard, but the ymp2 deletion has less effect on the proteolysis (See Figure 9).

Table 5

Six polypeptides are identified here, Pep4, Prbl, Ypsl, Yps2 and newly discovered Ympl, Ymp3, in Pichia that are responsible for the heterologous polypeptide (SEQ ID NO:1) degradation. Genetic knockout of these genes can significantly improve the productivity of the heterologous protein expression.

Example 4 - Mannosyltransferase knockouts

When the heterologous polypeptide (SEQ ID NO: 1) produced from Pichia wild-type strain GSl 15 was analyzed by LC/MS, multiple 162 Da mass increase isoforms were observed. Further analysis using multiple enzyme digestion and LC/MS demonstrated that glycosylation occurred in the HSA moiety, and the results were confirmed using Edman sequencing and carbohydrate composition analysis (data not shown). Carbohydrate composition analysis confirmed that these modifications were caused by 0-mannose glycosylation, which is a common post- translational modification of proteins produced in Pichia pastoris . Mannosyltransferase knockouts of Pichia strains were made using the same methods described in Example 2 for protease knockouts. Namely, a KanMX expression cassette was inserted in one of these genes responsible for glycosylation in yeast: OCHl, PMTl, PMT2, and PMT4. Knockout strains were transformed with a vector capable of expressing SEQ ID NO: 1. The phenotypic changes of these knockout strains were demonstrated using the Zymolyase sensitivity assay (Figure 10). In this experiment, exponentially growing yeast culture was diluted to OD600=0.3 in YPD supplemented with 5U/ml of Zymolyase. The cultures were incubated in room temperature with gentle shaking. Samples were collected at every 15 minutes for 2 hours and OD600 measurement was performed as an indicator of cell death.

Mannosyltransferase genes are essential for full cell wall integrity, pmtl and pmt4 knockout strains may have partial or incomplete cell walls, which may result in enhanced sensitivity to Zymolyase treatment. The data showed that both pmtl and pmt4 mutants died quickly with Zymolyase treatment. Heterologous protein was evaluated for glycosylation comparing heterologous production in genetically modified strains with wild type strains. Summary results for knockouts are presented in Table 6 below. Also see Figure 11. Results showed that Pmt4 is solely responsible for HSA glycosylation in Pichia. Apmt4 single knockout strain can produce glycosylation-free human HSA. Table 6

Example 5 - Co-expression with Chaperon Proteins Several chaperon proteins could be co-expressed with heterologous protein in a host cell to increase heterologous protein production. Examples of chaperon proteins that may be co-expressed with heterologous protein in yeast to increase heterologous production are presented in Table 7 below.

Table 7

Claims

1. A genetically modified Pichia strain wherein at least one nucleic acid sequence encoding a functional gene product and/or at least one nucleic acid sequence necessary for expression of at least one functional gene product in said Pichia strain is genetically modified, wherein said gene product is responsible for proteolysis and/or glycosylation in said genetically modified Pichia strain.

2. The genetically modified Pichia strain of claim 1, wherein at least one nucleic acid sequences encoding at least one of the following functional gene product or expression of said gene product is genetically modified: PEP 4, PRBl, YPSl, YPS2, YMPl, YMP2, YMPl, DAP2, GRHl, PRDl, YSP3, wid PRB3.

3. The genetically modified Pichia strain of claims 1 or 2, wherein said Pichia strain produces a reduced amount, none and/or a reduced activity of at least one of the following enzymes and/or type of enzyme: Arg/Ala like- aminopeptidase, aspartyl protease, serine protease, secreted aspartyl protease, secreted serine protease, methyltrophic yeast protease, DPP IV like endopeptidase, metalloendopeptidase, Prb 1 -like serine protease, Prbl serine protease, Vacuolar protease B like, Leu like-aminopeptidase CPY like carboxypeptidase and/or mannosyltranferase compared with wild type strain.

4. The genetically modified Pichia strain of any one of claims 1 to 3, wherein at least one of the following nucleic acid sequences encoding a functional gene product or expression of said gene product is genetically modified: OCHl, PMTl, PMT2, and/or PMT4.

5. The genetically modified Pichia strain of any one of claims 1 to 4, wherein said genetically modified Pichia strain is genetically modified form of wild type X-33 or SMD1163.

6. The genetically modified Pichia strain of any one of claims 1 to 5, wherein said genetically modified Pichia strain is genetically modified form of wild type Pichia pastoris, Pichia finlandica, Pichia trehalophila, Pichia koclamae, Pichia membranaefaciens, Pichia methanolica, Pichia minuta (Ogataea minuta, Pichia Hndneri), Pichia opuntiae, Pichia thermotolerans, Pichia salictaria, Pichia guercum, Pichia pijperi, Pichia stiptis, Pichia sp.

7. The genetically modified Pichia strain of any one of claims 1 to 6, wherein the following nucleic acid sequence encoding a functional gene product or expression of said gene product are genetically modified: PEP4, PRBl, YPSl, YPS2, YMPl, YMP2, YMP3, md PMT4.

8. The genetically modified Pichia strain of any one of claims 1 to 7, wherein said strain produces a reduced amount, none and/or a reduced activity of at least one mannosyltransferase compared with wild type strain.

9. The genetically modified strain of any one of claims 1 to 8, wherein at least one nucleic acid sequences encoding at least one of the following functional gene product or expression of said gene product is genetically modified: SEQ ID 0:4, SEQ ID N0:6, SEQ ID N0:8, SEQ ID NO: 10, and/or SEQ ID NO: 12.

10. The genetically modified Pichia strain of anyone of the proceeding claims further comprising at least one polynucleotide capable of expressing at least one heterologous polypeptide.

11. The genetically modified Pichia strain of claim 10, wherein said polynucleotide capable of expressing at least one heterologous polypeptide is a vector and/or episomal expression from a plasmid.

12. The genetically modified Pichia of claim 11, wherein said polynucleotide capable of expressing at least one heterologous polypeptide is transformed into the genome of the Pichia.

13. The genetically modified Pichia of any one of claims 10 to 12 wherein said at least one heterologous polypeptide comprises at least one GLP-I agonist.

14. The genetically modified Pichia of claim 13, wherein said at least one GLP-I agonist is selected from the group of: incretin hormone and/or fragment, variant and/or conjugate thereof and incretin mimetic and/or fragment, variant and/or conjugate thereof.

15. The genetically modified Pichia of any one of claims 10 to 14, wherein at least one heterologous polypeptide has GLP-I activity.

16. The genetically modified Pichia of claim 15, wherein said at least one polypeptide having GLP-I activity comprises at least one fragment and/or variant of human GLP-I fused with human serum albumin.

17. The genetically modified Pichia of claim 16, wherein said at least one fragment and variant of GLP-I comprises GLP-1(7-36(A8G)).

18. The genetically modified Pichia of claim 17, wherein the at least one fragment and variant of GLP-I is genetically fused to human serum albumin.

19. The genetically modified Pichia of claim 18, wherein at least one fragment and variant of GLP-I comprises at least two GLP-I (7-36(A8G)) tandemly and genetically fused to the human serum albumin.

20. The genetically modified Pichia of claim 19, wherein the at least two GLP- 1(7-36(A8G)) are genetically fused at the N-terminus of the human serum albumin.

21. The genetically modified Pichia of any one of claims 10 to 20, wherein the heterologous polypeptide comprises SEQ ID NO: 1.

22. The genetically modified Pichia of any of claims 10 to 21 wherein said at least one heterologous polypeptide comprises one or more of the following: at least one antigen binding protein, at least one single variable domain, and/or at least one domain antibody.

23. The genetically modified Pichia strain of any one of claims 10 to 22, wherein said strain shows reduced proteolysis of said at least one heterologous polypeptide in said strain compared with wild type Pichia.

24. The genetically modified Pichia strain of any one of claims 10 to 23, wherein said strain shows reduced or no glycosylation of said at least one heterologous polypeptide in said strain compared with wild type Pichia.

25. A method of producing a heterologous polypeptide comprising expressing said heterologous polypeptide in a genetically modified Pichia of any one of the preceding claims.

26. A heterologous polypeptide produced in anyone of the genetically modified Pichia of the proceeding claims.

27. A genetically modified host cell wherein wild type parent of said genetically modified host cell comprises a gene encoding a polypeptide having at least 60% sequence identity to amino acids 1-865 of SEQ ID NO:4 (SEQ ID NO: 15) wherein said gene is genetically modified in the genome of said host cell such that the gene product is reduced or eliminated in said genetically modified host cell compared with said wild type host cell.

28. The genetically modified host cell of claim 27, wherein said wild type parent of said genetically modified host cell comprises a gene encoding a polypeptide having at least 60% sequence identity to over the entire length of SEQ ID NO:4.

29. A genetically modified host cell wherein wild type parent of said genetically modified host cell comprises a gene having at least 60% sequence identity to SEQ ID NO:3 wherein said gene is genetically modified in the genome of said genetically modified host cell.

30. The genetically modified host cell of claims 27 or 29 wherein said genetically modified host cell has reduced or eliminated protease activity compared with said wild type parent host cell.

31. The genetically modified host cell of claims 27 to 30 wherein said host cell has reduced or eliminated methyltrophic yeast protease 1 activity.

32. The genetically modified host cell of claims 27 to 31 wherein said host cell is Pichia.

33. An isolated polynucleotide comprising a polynucleotide having at least 60% sequence identity to SEQ ID NO:3.

34. An isolated polypeptide having at least 60% sequence identity to SEQ ID NO:4.

35. An isolated polynucleotide comprising a polynucleotide having at least 60% sequence identity to SEQ ID NO:5.

36. An isolated polypeptide having at least 60% sequence identity to SEQ ID NO:6.

37. An isolated polynucleotide comprising a polynucleotide having at least 60% sequence identity to SEQ ID NO:7.

38. An isolated polypeptide having at least 60% sequence identity to SEQ ID NO:8.

39. An isolated polynucleotide comprising a polynucleotide having at least 60% sequence identity to SEQ ID NO:9.

40. An isolated polypeptide having at least 60% sequence identity to SEQ ID NO: 10.

41. An isolated polynucleotide comprising a polynucleotide having at least 60% sequence identity to SEQ ID NO: 11.

42. An isolated polypeptide having at least 60% sequence identity to SEQ ID NO: 12.

43. A genetically modified Pichia strain wherein the genome of a wild type strain of said Pichia comprises a gene having at least 85% sequence identity to a gene selected from SEQ ID NOs:3, 5, 7 and wherein when said gene having at least 85% sequence identity to SEQ ID NOs. 3, 5, and 7 is deleted, mutated or disrupted, said genetically modified Pichia strain produces less gene product of said disrupted gene than said wild type strain.

44. The genetically modified Pichia strain of claim 43 wherein the genome of a wild type strain of said Pichia comprises a gene having at least 85% to SEQ ID No.3 and wherein when SEQ ID N0:3 is deleted, mutated or disrupted, said genetically modified Pichia strain produces less SEQ ID N0:4 than said wild type strain.

45. The genetically modified Pichia strain of claim 44 wherein said genetically modified strain produces less secreted serine protease activity than said wild type strain.

46. The genetically modified Pichia strain of claim 43 wherein the genome of a wild type strain of said Pichia comprises a gene having at least 85% to SEQ ID NO.5 and wherein when SEQ ID NO: 5 is deleted, mutated or disrupted, said genetically modified Pichia strain produces less SEQ ID N0:6 than said wild type strain.

47. The genetically modified Pichia strain of claim 46 wherein said genetically modified strain produces less arg/ala aminopeptidase like activity than said wild type strain.

48. The genetically modified Pichia strain of claim 43 wherein the genome of a wild type strain of said Pichia comprises a gene having at least 85% to SEQ ID NO.7 and wherein when SEQ ID NO: 7 is deleted, mutated or disrupted, said genetically modified Pichia strain produces less SEQ ID N0:8 than said wild type strain.

49. The genetically modified Pichia strain of claim 48 wherein said genetically modified strain produces less leu aminopeptidase like activity than said wild type strain.