Greg,
This isn't the paradigm at work in this rally.
The rally has two very different components. One is the hype and excitement component, the other is the fundamental component.
Perhaps CRA is the best example of the dichotomy. They certainly have the hype and excitement, and will likely win the "race" to sequence the genome. But where is their business plan? How are they actually going to make money?
What if HGSI and INCY have already locked up most of the gene patents?
From a fundamental perspective, it is clear that the gene sequencing will indeed have a significant impact. However, the impact will likely not be a short-term one. From gene to drug is still many years, and many trials and tribulations. Having great targets is not enough - just look at SNAP, with some very nice receptor IP (e.g., some unique serotonin receptors targets), but nothing but failures on the drug development side.
Of the gene-to-drug companies, MLNM is perhaps the most ambitious, but don't forget some big pharmas have been hammering away at the HGSI and INCY data for a few years already.
Some of the intermediate players like ABSC (screening) and the Mab companies are an obvious derivative play, but they have already participated fully.
Peter |
