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redherring.com
Although it remains to be seen which organization will
be the first to map the human genome, it's already clear
who will first put the findings to practical use: the
commercial interests have won the race. Next year,
when the first phase of mapping the genome is
complete, human genetic information will be offered to
the highest bidder, spawning an entirely new industry in
biopharmaceuticals based on diagnostics, the
development of drugs, and disease treatment and
prevention at the body's genetic, rather than cellular,
level.
While the U.S. government, through its publicly
financed Human Genome Project (HGP) -- sponsored
by the National Institutes of Health, the Department of
Energy, and the Wellcome Trust of London --
continues to churn through the approximately 4 billion
units of DNA at the heart of every human cell,
companies like Incyte Pharmaceuticals (Nasdaq:
INCY) and Hyseq (Nasdaq: HYSQ) are on a faster
track: they're mapping only those areas of the genome
that promise to be profitable. And with corporations
moving so aggressively into this area of research, the
project of mapping the human genome is now as much
about generating returns on multimillion-dollar
investments as it is about pushing the envelope of
scientific discovery.
The rewards will be great. There is extraordinary
commercial value in the sequencing of the human
genome -- that is, in determining the precise
arrangement of the units of DNA in all human genes --
because it opens up the possibility that scientists and
researchers will be able to develop treatments for any
genetic disease or condition ever to insinuate itself into
the human body.
COMMERCIAL BIG BREAKS
It's a windfall opportunity for the pharmaceutical
companies, which have only scratched the surface of
the potential applications of genetic data in helping
create the blockbuster drugs of tomorrow. For
example, when Amgen (Nasdaq: AMGN) developed
Epogen, generically known as erythropoietin, in 1989,
the company had no idea that the genetically
engineered protein, which helps increase the level of
oxygen in the body by stimulating red blood cell
production, would eventually generate $2 billion in
annual sales. And Epogen is just the beginning; related
genetically engineered anti-inflammatory and
anticlotting drugs are already in the pipeline.
Of course, a good deal of controversy surrounds the
commercialization of human genetic data. (See our
interview with the activist Jeremy Rifkin: "Keep Your
Genes On," April 1999.) Celera Genomics, for
example, has drawn the most fire from the scientific
and academic communities -- as much for challenging
the HGP in the race to map the entire human genome
(both organizations are scheduled to finish next year)
as for reducing the endeavor to its basest commercial
interests. The company, headed by J. Craig Venter,
who formerly worked in the public-sector Institute for
Genomic Research, has invested $300 million so far.
Although Celera has vowed to offer all its genetic
information to "public domain," Dr. Venter's critics
note that the company will retain a monopoly on that
data: technically, the information will be available to the
public, but only those corporations that can afford
multimillion-dollar subscription fees will have any
practical access to the Celera genetic library.
SNPs OF DATA
The same is true for Incyte Pharmaceuticals, which
also operates on a multimillion-dollar subscription
basis. Incyte is even more overt in its pursuits: it is
mapping only the 10 percent of the human genome that
will garner the company the most lucrative commercial
applications. This 10 percent, which contains
single-nucleotide polymorphisms (SNPs or "snips" for
short) is thought to contain the human body's most
active "software" codes; by mapping just this subset,
companies like Incyte can get a leg up by reducing the
time required to obtain human genetic data, as well as
put it to use and help its customers do the same. Like
Celera, Incyte will charge for access to its database.
Hyseq, a biopharmaceutical company that has already
mapped 12 million human DNA units through a
subsidiary called GeneSolutions.com (see
"Rent-a-Gene.com"), plans to do the same.
Although critics of the commercialism of human genetic
mapping contend that all such data should remain free
and open, biopharmaceutical scientists and company
leaders don't necessarily agree. Comparing the final
map of the human genome to the periodic table of
elements, biotech executives argue that it's not merely
the data that's important; it's also what we can do with
it and how it can be manipulated that is of value to the
world -- and, they contend, such information can truly
be mined only under a for-profit business model. Says
Hyseq CEO Lewis Gruber, "If you want something to
happen when it comes to mapping the human genome
and developing the next generation of drugs, you
should make sure that people can find a way to make
money at it." Next year will probably prove him right. |
