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Proteomics Firms Turn to IT for Database Upgrade

Proteomics companies don't want to be seen as database providers, a low-valuation model once pursued by Celera and Incyte. So companies like Myriad Genetics and Oxford GlycoSciences have spun out their database businesses into JVs with IT partners, which provide cash and technology. Both partners benefit: biotechs get valued as budding drug developers and retain access to these tools, while IT companies get a foot in the door of the life sciences markets into which they wish to expand their products and services.

Genomic content providers like Incyte Genomics Inc. and Celera Genomics Group have packed up their databases and moved downstream into drug development. Despite their proximity to profitability, genomics companies built on selling discovery information just don't garner the valuations reserved for drug developers, and as customer interest wanes, database subscriptions are slipping.

Proteomics players are following suit. Like genomics players, they don't want to see their companies valued merely as database providers....

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