Domina (Dom) is a novel member of the FKH/WH transcription factor gene family of Drosophila. Two alternatively polyadenylated Dom transcripts of 2.9 and 3.9 kb encode a 719-amino-acid protein with a FKH/WH domain and a putative acidic transactivation domain. Dom is mainly expressed in the central and peripheral nervous system. Homozygous mutants show rough eyes, irregular arrangement of bristles, extended wings, defective posterior wing margins, and a severely diminished vitality and fertility. Heterozygous Dom flies are morphologically wild type but show suppression of position-effect variegation. Consistently with this chromatin effect DOM protein is accumulated in the chromocenter and, as expected from a transcription factor, is found at specific euchromatic loci. Sequence comparison suggests that DOM of Drosophila is homologous to the chordate WHN proteins. The chromatin modifying capability of DOM is probably based on the FKH/WH domain, which shows a remarkable structural similarity to the winged-helix structures of H1 and the central globular domain of H5.

Reversible epigenetic changes that alter gene expression are a characteristic of many cancers and other diseases. Biotech companies are taking note and are starting to develop new drugs to reverse such pathogenic "epimutations."

The PEV-modifying winged-helix/forkhead domain transcription factor JUMU of Drosophila is an essential protein of pleiotropic function. The correct gene dose of jumu is required for nucleolar integrity and correct nucleolus function. Overexpression of jumu results in bloating of euchromatic chromosome arms, displacement of the JUMU protein from the chromocenter and the nucleolus, fragile weak points, and disrupted chromocenter of polytene chromosomes. Overexpression of the acidic C terminus of JUMU alone causes nucleolus disorganization. In addition, euchromatic genes are overexpressed and HP1, which normally accumulates in the pericentric heterochromatin and spreads into euchromatic chromosome arms, although H3-K9 di-methylation remains restricted to the pericentric heterochromatin. The human winged-helix nude gene shows similarities to jumu and its overexpression in Drosophila causes bristle mutations.

The global financial crisis has hit biotech companies hard both in the US and Europe as venture capital dries up. Finding new sources of long-term financing for translating research into new therapeutics will be essential for maintaining innovation and new drug development by biotech companies.

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