Big Foot: Celera Steps into the Genomic Market
Executive Summary
PE Corp. created Celera to exploit its high-productivity new sequencer, the Prism 3700, and build a broad set of proprietary genomic databases. The move instantly boosted sales of the new sequencer, paying for the expensive start-up in increased revenues to PE's PE Biosystems division and a dramatic increase in market value. Unlike its genomic database competitors, Celera won't charge subscribers royalties and milestones for successful use of the data. To encourage broad and continuing use of the system it hopes will become the industry standard, it plans to make money largely on subscription fees and enlarging its client base, not reach-through rights. But novel genetic data is just the hook for catching clients--Celera hopes to keep them subscribing with a program of continuous annotations and a set of bioinformatics tools that enable a level of in silico experimentation once requiring highly expensive in vitro and in vivo studies. But a raft of new and older competitors stand in the way of its bioinformatics ambitions.
You may also be interested in...
Venter Targets Life Extension With New Genomic Research Company
The former Celera CEO has raised $70 million for a new organization that will use genomic, biochemical and microbiome data to find stem cell-based treatments for aging-related disorders.
Making a New, Big Splash in the Sequencing Market
If one of the first ingredients of a successful tool company deal is to invest as little capital as possible, what then to make of the hefty $27 million raised by Helicos, a developer of high-throughput sequencing systems? The company that successfully integrates the technologies needed for single-molecule sequencing could find a fast and rewarding exit, and neither their investors nor management reject the possibility of a buy-out even before their products hit the market in a few years.
Making a New, Big Splash in the Sequencing Market
If one of the first ingredients of a successful tool company deal is to invest as little capital as possible, what then to make of the hefty $27 million raised by Helicos, a developer of high-throughput sequencing systems? The company that successfully integrates the technologies needed for single-molecule sequencing could find a fast and rewarding exit, and neither their investors nor management reject the possibility of a buy-out even before their products hit the market in a few years.