Transgenic animals have been used
Transgenic animal models of human disease can be useful for preclinical drug testing. Animals engineered to be susceptible to human viruses, by the introduction of viral receptors or other host range determinants, can also be used for testing human vaccines.
Transgenic animals can serve as ‘factories’ that, in some cases, may produce large amounts of proteins more efficiently than the alternative expression systems such as bacteria, yeast, or mammalian cell cultures.
Transgenic mice have been engineered to express human antibodies by introducing large segments of human DNA encoding human immunoglobulin gene, and breeding these transgenic animals with strains in which the endogenous immunoglobulin loci are mutated.
In transgenic large animals such as cows or sheep, proteins of pharmaceutical value can be produced in large quantity in milk (and later purified) by introducing the appropriate gene under the control of regulatory elements that direct expression in the mammary glands.
So the correct answer is option D.