In Vivo is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Genomica Gives Up the Ghost

Executive Summary

Less than two months after Genomica announced a change in strategic direction, resulting from disappointing market penetration of its third-party enterprise bioinformatics software, the company agreed to be acquired by Exelixis for $110 million in stock--precisely the amount of cash it was sitting on, making the deal in essence a back-door follow-on offering for Exelixis. The acquirer is therefore getting Genomica's software and technology base for a song, a fact that speaks volumes about the sustainability of a software-based bioinformatics business.

You may also be interested in...



Germany's Neuer Markt Shake Out

The Neuer Markt's fall from grace is more than a reflection of the global market slump. Having soared faster and higher than most other markets, Germany's growth exchange is now suffering the worst. And its recovery is likely to take longer.

Downward Trends in Proteomics Deal Making

For more than a year, VCs have backed away from the proteomics tools group--drug companies hadn't signed the expected number and value of deals with them, and it was deal revenues that were, according to most business plans, going to support these start-ups. That pharma and biotech companies have a bigger appetite for products than for platform technology has become a truism. Licensors increasingly are finding that they must offer partners more than a discovery technology platform-either by validating targets and building value before out-licensing, or at least having the biological capability in-house to be a true collaborator.

Terra Infirma: Pharma Dealmaking 2001

With Big Pharma still trying to figure out how to create productive businesses from their mega-mergers, most of the year's high-value M&A saw biotechs buying late-stage or marketed products. But these biotechs are also, with the risk of development failure ever clearer, actively in-licensing and acquiring products and product-creating technologies in order to diversify what are often single-product portfolios. Unlike many Big Pharmas, these companies have been willing to improve existing chemical entities, often exploiting drug delivery and other pharmaceutical sciences. Meanwhile, large companies focused on late-stage in-licensing, in part because they couldn't afford acquisitions--given the valuation disparities between large companies and small ones with valuable late-stage products. Nonetheless, while more affordable than acquisitions, the high price of these deals has transferred the majority of the regulatory and commercial risk to the licensee. As for the early-stage side of the biotech industry: platform companies have not been able to sell their discovery technologies at anything like the prices they expected; as a result, many of them have merged in an effort to create product-focused discovery operations.

Related Content

Topics

Related Companies

UsernamePublicRestriction

Register

OM013164

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel