Piper analyst Hancock seems to be on the same page as I am. Helping BDAL in particular, which has been weak.
>>BOSTON, Jun 1, 2001 /PRNewswire via COMTEX/ -- U.S. Bancorp Piper Jaffray Senior Biopharmaceuticals Analyst Tom Hancock believes the proteomics industry is the next key growth driver for biotechnology and biopharmaceutical companies on the heels of a successful human genome sequence. Proteomics is the study of proteins and encompasses a broad mix of analytical and biochemical tools for protein display, identification and characterization.
"Before the dust has had time to settle from the completion of the human genome sequence, biotechnology and biopharmaceutical companies are looking to build upon the genomic information with proteomic tools for the express purpose of improving drug discovery," said Hancock. "We anticipate that proteomic discoveries will enable significant improvements in the drug discovery process, with the potential to bring a host of novel, more effective drugs to market."
Hancock states that the proteomics industry includes companies that sell mass spectrometry (MS) or protein separation equipment. He goes on to say that proteomics is undergoing a technology revolution similar to the industrialization that gave rise to the genomics industry as MS suppliers continue to apply the same factory-like automated approach to protein characterization once applied to DNA sequencing.
"We believe that companies that combine competitive instrument hardware with fully integrated bioinformatics software will ultimately take home a large slice of the proteomics pie," said Hancock. "Importantly, these instrument suppliers have been the first to benefit from the proteomics industry and are likely to see proteomics-directed equipment drive revenue growth over the next several years, as proteomics companies and public efforts continue to emerge and build their instrument infrastructures."
Key players in the proteomics industry are Applied Biosystems (NYSE: ABI chart, msgs, Strong chart, msgs Buy chart, msgs, $30.76 chart, msgs, # chart, msgs) and Waters (NYSE: WAT chart, msgs, Buy chart, msgs, $49.68 chart, msgs, # chart, msgs) with Bruker Daltonics (NASDAQ: BDAL chart, msgs), ThermoFinnigan (NYSE: TMO chart, msgs) also jumping into the proteomics supplier market. "Successful protein identification requires sample preparation on the front end and useful bioinformatics tools on the back end of mass spectrometry," said Hancock. "Therefore, in addition to providing cutting-edge hardware, mass spectrometry makers are offering integrated proteomics systems that include upstream and downstream tools in order to stay competitive in the field."
In addition to having an effect on the equipment suppliers, the largest proteomics group contains companies that classify themselves as target discovery engines for the biopharmaceutical industry. The industry is building itself on top of the foundation laid by the genomics industry harnessing the deluge of DNA sequence information that provides the foundation for rapid protein identification.
"We expect companies to evolve rapidly as they transform solid instrument and data management infrastructures into drug discovery engines, providing a compelling story in the chapter of biotechnology that is likely to attract considerable attention in the years ahead," said Hancock. "Proteomics is expected to have a much longer cycle and there is no clear end point. We believe it will be a long-lived sector with much stability for investors."<<
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Cheers, Tuck |
