Over the past decade the utility of the livestock mammary gland as a bioreactor for the production of recombinant human proteins has been clearly demonstrated. The benefits of transgenic protein production include safety from human viral contamination (e.g., HIV or hepatitis), low-cost, highvolume production, correct posttranslational modifications, and applicability to a wide range of complex proteins and peptides. PPL has expressed a number of human plasma-derived proteins in sheep at commercially useful levels, including fibrinogen, factor IX, and factor VII, and a nutritional protein, human α-lactalbumin, has been produced at high levels (2.4 g/L) in transgenic cows. PPL's lead product, human α-l-antitrypsin (AAT), has been produced at levels up to 35 g/L in sheep milk and is currently in phase II clinical trials for treatment of cystic fibrosis. With the advent of somatic cell nuclear transfer technology (cloning), we have seen the birth of Polly (our cloned sheep transgenic for factor IX) and a cloned bull calf, Mr. Jefferson. The use of nuclear transfer for production of transgenic animals has numerous benefits, including increased efficiency, shortened timelines, and the ability to make precise genomic modifications such as gene knockouts, which should open new avenues for transgenic protein production, as well as biomedical and agricultural applications.