HYSQ execs tell songwire that the PKN news is indeed an important development for the company.
PKN and HYSQ are apparently 50/50 partners in the DNA chipset that may be included in PKN's
new technology featured in yesterday's NY Times. PKN alluded to their 'valuable "partnership with
HYSQ in this AM's conference call according to the company.
The HYSQ-PKN connection may have been missed by traders because their partnership news is
from last June -2 months before HYSQ's ipo and not included in most stock databases. HYSQ
execs say they are considering a release to remind the investment community of the connection.
Worth watching PKN 72 1/2 +4 HYSQ 14 1/2 + 1/2
5/11/98 9:59 am est
CNET is reporting that NSCP will announce sometime today a new Netcenter service called Small
Business Source. The service will include web site creation and editing tools, web hosting services,
news and information retrieval, chat rooms and other forums for small business owners. As part of
this new initiative Netcenter will offer users Netopia's NTPA Virtual Office -which allows for real
time chat and screen sharing. NTPA trading mid 8s Small Business Source will also include business
news via NewsEdge NEWZ and offerings from Preview Travel PTVL and Amazon AMZN
specifically aimed at small business owners according to CNET.
news.com
5/11/98 9:20 am est
The Sunday NY Times ran a front page story on PKN Perkin Elmer's announcement that they have
hit upon technology that may allow the human genome to be mapped much more quickly than
previously planned and at a fraction of the cost. Though not as easily understood as last week's
ENMD cancer news this announcement may actually have greater scientific impact.
From the Times story-
"The project could have wide ramifications for industry, academia and the public because it would
make possible almost overnight many developments that had been expected to unfold over the next
decade. One such development is individualized medicine, the tailoring of drugs and other treatments
to patients depending on specific variations in their DNA sequence."
Mapping the human genome was originally thought to take $3B and at least 15 years. PKN believes
that it will now be able to complete it in 3 years for about $150M. But the real importance may lie in
patents that PKN could conceivably claim if successful. PKN could arguably control patents on
components of the genome itself.
From the Times-
"Deciphering the script in which the instructions are written -- the chemical units of DNA -- would
yield a trove of knowledge about human physiology and disease, as well as the power, in principle,
to correct the errors in DNA programming that cause genetic disease. The genome, once
deciphered, is likely to be seen as the foundation of human biology, and hence is the object of
intense scientific and commercial interest. " PKN announced it will be forming a new venture with
genome expert Craig Ventner. PKN will own 80% of the new company. PKN says that they plan
on offering competitors access to this technology-presumably thru licensing.
"With the new company, Perkin-Elmer would seem for the first time to be stepping into direct
competition with the customers who buy its sequencing machines and other genome-analysis
equipment. White (PKN CEO), however, has no evident ambitions to become the Bill Gates of the
genome world. "We are anxious to talk to anyone who might feel threatened by this to make very
sure that we are doing something compatible," White said. -but that will likely be explained in a
scheduled 10AM conference call. PKN closed friday near 68.
Human genome compaonies that could benefit from this new technology include HGSI, AFFX,
VGINF. One recent ipo Nanogen appears to be in the field of genome technology. But the genome
company that appears to have the inside track to PKN and its discovery is HYSQ Hyseq. HYSQ
like the others is mapping the genome. But unlike any of its competitors HYSQ already has a deal
with PKN. PKN announced a partnership last year to use HYSQ's DNA technology and further
PKN owns a stake in HYSQ.
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