Clinton and Blair suggest free access to genomic data
and the biotech sector sinks like a stone. Personally, I've never seen anything like it and I've never seen such stupidity in my life. For those out there who are not already aware, several free genomic databases already exist (for example GenBank) and the data compiled there is generally only a few months behind those in the proprietory databases created by the Genomics companies like Incyte Myriad, and Celera. The market has interpreted today's remark as meaning that no genes will be patentable. The European patent office has been threatening this already for months. Does this effect the genomics companies? Sure it does. It will be more difficult for them to protect their intellectual property if genes cannot be patented. Ultimately, though, genomics companies knew that to really protect their discoveries, novel therapeutics which address the genetic defects they discovery would be necessary. So this means that genomics companies will either have to develop drug development skills on there own or partner with existing powerhouses like Vical, Abgenix and Cambridge Antibody Technology. For the drug discovery companies and especially those in niche markets like Vical (naked DNA gene therapy), Abgenix and Cambridge Antibody Technology (human monoclonal antibody producers), Ribozyme (ribonucleic acid protease producers) and PPL therapeutics (trans-splicing technology) the worst case scenario for the genomics sector may actually serve benefit the drug discovery group because of increased competition in diseased gene identification and the subsequent increased demand for drug designers. If the worse scenario for genomics companies were to occur, a massive amount of competition would arrise from University labs. This immense competition would lead to quicker identification of disease targets and hence much more work for the drug discovery companies. Either way, the drug discovery companies are not injured at all by todays talk. And let's be frank, it is just talk. It is fascinating that the drug discovery companies were wipped so brutally today. I don't think the average investor can differentiate between a genomics company and other biotech companies. This is a serious flaw in the way investment in this sector has occurred and it is my opinion that the genomics companies have been heavily overvalued anyway. Those of us in the industry already knew that several major patenting offices around the world were threatening to make genes non patentable. The idea of patenting a gene is repugnant to any good scientist anyway and I am surprised it took this long for the general public to realize that the patenting of genes may well NOT be allowed.
Perhaps the elite drug discovery companies like Genentech, Vical, Abgenix, Medarex, Cambridge Antibody Technology, Neurocrine, Alexion, Chiron, Immunex, Amgen and Biogen, to name just a few should be placed into a separate category which more closely resembles the pharmaceutical industry. Certainly the pure genomics sector that includes Incyte, Myriad, Celera, Hyseq, Gene Logic, Genome Therapeutics, Millenium and Vertex should be placed into a class of their own because of the uncertainly regarding the legitacy of their gene loci associated patents. I've always considered patenting specific genes a kind of joke on nature anyway.
I also cannot see how today's concern about the genomics industry should effect companies like Geron, Pharming and PPL Therapeutics, the leaders in the cloning industry. No body has ever hinted that cloning methodology cannot be patented and certainly transgenic and knock out animals have always been patentable and will continue to be. PPL's successful cloning of a pig this week is clearly a major triumph for scientists in the field of xenotransplantation. It may soon be possible to make human-like tissues in pigs via human nuclear transfer to pig embryonic stem cells. Such tissues could be used for transplant without concerns of rejection. This is a huge step forward.
Today, however, we all took one huge step backward and I for one am thankful for the ignorance of the American investors who suddenly (and I mean suddenly) made companies like GERN, ONXX, VICL, NBIX and CAT, companies which I thought had run away for good, very affordable again. THANK YOU!!
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