SCIENCE + TECHNOLOGY
sustain genomics operations (a single Genome Sequencer FLX by 454 Life Sciences and Roche Applied Sciences runs for about $500,000) as well as the constant need to understand the competitive structure within the genomics market, such biotech firms or pharmaceutical firms must generate creative business strategies in order to make such research a reality. Small
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with intimate knowledge in how to bring an idea to bear. This allows them to pursue aggressive avenues for drug development, such as the purchasing of chemical expertise. As market conditions improve, we may observe a resurgence in LBO and acquisitions of smaller biotech firms by these larger pharmaceuticals, increasing the efficiency of the biotech sector as well
interest of Asian biotech firms (in this case, GenCore BioTechnologies). These acquisitions have allowed for American firms to generate large profits from the research being done there as well as outsource projects to China that would be more highly regulated domestically. With the explosive growth of practical knowledge that is being generated everyday in the field
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Personal genomics has extremely wide reaching consequences in the medical field, redefining the idea of personalized healthcare, enabling healthcare providers to give patients treatments that are truly specialized to their specific genetic makeup and the genetic structure of their individual diseases.
to medium cap biotech firms rely heavily on creative financing strategies, often in the form of venture capital firms and primary and secondary equity offerings, and convertible debt offerings. However, with the poor performance of equity markets, along with the seizing up of bond markets, it will become significantly harder for such companies to attain funding through these venues. Therefore, much of the genomics development that will be conducted in the next few years will rely on large-cap pharmaceuticals. Such pharmaceutical firms are not only well-capitalized, but also have a well-established market—along
as increasing profits and valuable resources for the acquiring firms. Asian biotech firms are especially benefiting from the blossoming of genomics research due to a general lack of regulation (in both the biotech/healthcare sector as well as in capital markets), which allows for firms in emerging Asia to be highly competitive in advancing genomics research. In fact, there have been millions of dollars in FDI (foreign direct investments) from the US being siphoned into biotech companies in Asia. Companies such as Celera Genomics, based out of Rockville, MD, have directly acquired a majority
of genomics coupled with the (relatively) free flowing movement of international capital, we can expect to see that biotech will continue being one of the leading investment sectors for businesses. The field of genomics will soon become a key part of our lives as researchers rapidly develop personal devices to solve some of mankind’s most pressing medical needs. This will not only provide hope to the millions of sufferers of chronic illnesses that are currently untreatable by conventional methods, but will also provide a multitude of profitable investment areas for businesses. BT
SPRING 2009 BUSINESS TODAY 59