Selected biotech news

This week's announcement by Celera Genomics that it has DNA sequences totalling more than 90 percent of the genome in its database has certainly increased the value of Celera on the stock market. However, it has also brought the public/private genomics debate back to life. Celera officials openly admit that they have only been able to achieve this 90 percent figure by extensively drawing from public data available from the Human Genome Project. Thus it has been regarded as 'disturbing' that Celera 'clings to the right to control the use of its own data, while freely using that obtained from publicly financed sources'. Celera's use of public data means that they will probably sequence the human genome fewer times than previously planned. John Sulston, director of the Sanger Centre in Cambridge, where one third of the publicly funded sequencing is being undertaken, has pointed out that Celera's coverage of the gene is only to a depth of 1.5X, whereas the public project has already completed half of the genome sequence at 5X.

Experts have predicted that the sequencing outputs of Celera and the public project are actually running 'neck and neck' and that the total amount of new raw data needed for 'adequate coverage' of the genome could be obtained by the summer, 'provided the data from both groups are combined'.

Meanwhile, the Japan Development Bank has announced that it will set up a fund dedicated to biotechnology. Investments related to biotechnology in Japan have tended to focus on established home or foreign companies. The new 'BioIncubation Fund' will instead help new domestic companies develop. There has been a marked increase in the number of Japanese biotechnology companies in the last year, but investors and venture capitalists have been slow to invest.

Warner-Lambert and Pfizer are in discussion about a merger. If the £45 billion deal goes ahead, it will create the world's largest pharmaceutical group. Warner-Lambert was planning to merge with American Home Products (AHP), but AHP's share price has fallen dramatically and shareholder pressure has made Lodewijk de Vink, Warner-Lambert's chief executive, reconsider the now more financially attractive deal with Pfizer.