Chemistry Firms Still Second Fiddle in Biology-Chemistry Mergers

With a scarcity of well-trained chemists and exponentially increasing numbers of genomics-generated targets contributing to an already bulging lead identification/optimization bottleneck, medicinal chemistry capabilities are at a premium. Nonetheless, when it comes to market valuations, biology companies still come out on top. And Celera's recent acquisition of Axys, along with Lexicon Genetics purchase of Coelacanth help prove the point.

With a scarcity of well-trained chemists, and exponentially increasing numbers of genomics-generated targets contributing to an already bulging lead identification/optimization bottleneck, medicinal chemistry capabilities are at a premium. Nonetheless, when it comes to market valuations, biology companies still come out on top. And a series of recent deals proves the point: Oxford Asymmetry International PLC selling out to Evotec OAI[See Deal]; Vertex Pharmaceuticals Inc. acquiring Aurora Biosciences Corp. [See Deal] and, most recently, Celera Genomics Group 's (an Applera Corp. unit) acquisition of Axys Pharmaceuticals Inc.[See Deal], and Lexicon Genetics Inc. 's purchase of Coelacanth Corp. [See Deal].

Most of these deals reflect the mutual desires of the companies involved to move towards a more product-oriented business model....

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