Transgenic bacteria are one that carries a transgene or a foreign gene of interest introduced using recombinant DNA technology. e. g., bacteria carrying the genes for human insulin.

In 1983, Eli Lilly an American company prepared two DNA sequences corresponding to A and B, chains of human insulin and introduced them in plasmids of E. coli to produce insulin chains. Chains A and B were produced separately, extracted and combined by creating disulfide bonds to form human insulin.