Calgene Denies Report on Its Lab Tomato : Biotechnology: Firm says Campbell Soup has not backed away. But its stock takes a pounding.

Shares of agricultural biotechnology pioneer Calgene took a drubbing on the stock market Monday in response to reports that Campbell Soup, one of Calgene’s primary supporters in the development of its genetically engineered tomato, was backing away from its commitment.

Calgene characterized as “inaccurate and misleading” a report from the activist group Pure Food Campaign that Campbell Soup was withdrawing its support--a potential blow to both Calgene and the fledgling ag-biotech industry.

Roger Salquist, Calgene’s chief executive, on Monday said he was “outraged” by Pure Food’s claims, as reported in Sunday editions of the San Francisco Examiner. Campbell, the Camden, N.J., food products giant, said in a statement Monday that it has not changed its stance on the tomato.

On Monday, shares of Davis, Calif.-based Calgene closed at $16.625, down $1.25 on the NASDAQ market.

Salquist said although Campbell had funded Calgene’s research on the tomato over an eight-year period, his company didn’t yet have a product that would be suitable for use in Campbell’s soups, sauces and other processed-tomato products.

Campbell’s statement said it “does not produce any bio-engineered products, nor buy or use any bio-engineered ingredients in any of its products . . . and has no plans to do so.”

Pure Food, led by longtime biotech foe Jeremy Rifkin, has been organizing a boycott campaign against Calgene and its tomato, which is expected to be the first genetically engineered food product available to consumers. Calgene intends to begin selling its tomato to produce and grocery stores sometime this year.

On Monday, Rifkin said he was not satisfied with the response and warned the soup maker that it faces an extensive boycott.