TORONTO, Jan 30 (Reuters) - The life sciences division of IBM Corp. has said it will forge a strategic alliance with a Canadian company on Tuesday, and analysts said on Monday the link is likely to be with a division of Toronto-based MDS Inc. (Toronto:MDS.TO - news) (NYSE:MDZ - news).
International Business Machines Corp. (NYSE:IBM - news) has been striking alliances with companies involved in proteomics -- or the science of analyzing proteins to determine their role in disease -- and currently hosts the Worldwide Genome Database at the Hospital for Sick Children in Toronto.
``IBM will probably do something with MDS. There are no other proteomics companies in Toronto except a small one called Integrative Proteomics,'' said a prominent Canadian biotech analyst.
MDS has the infrastructure, laboratories, people and money, but what is missing is the technology to analyze a colossal amount of data, said the analyst.
IBM said in September that it had inked an agreement with Incyte Genomics Inc. (NasdaqNM:INCY - news) that will give Incyte access to IBM's DiscoveryLink data management software to analyze complex biological systems.
The announcement followed on a $100 million, three-year commitment by IBM to invest in the development of technology, and partnerships to interpret the genetic code.
Analysts in Toronto expect a similar alliance with MDS Proteomics in advance of a postponed initial public offering that is expected to peg the market valuation of MDS Proteomics at C$500 million to C$750 million ($333 million to $500 million).
``In Canada the only company that it could be is MDS Proteomics and their model is to build themselves into a technology platform company, so this makes sense,'' said another biotechnology analyst based in Toronto.
Shares of MDS were up 10 Canadian cents to C$24.85 in mid-afternoon trading on the Toronto Stock Exchange. On the New York Stock Exchange the shares were off 22 cents at $16.40. IBM stock was up $1.01 at $115.20 in New York. |
