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To: Robert Rose who wrote (108353)	9/12/2000 12:50:28 PM
From: H James Morris	Respond to of 164684

Rob, don't forget San Diego ( Biotech valley) too. >September 12, 2000 The supercharged engine driving San Diego's economy got even more horsepower yesterday as Irish drugmaking giant Elan Corp. announced that it will acquire Dura Pharmaceuticals for $1.8 billion. The deal -- the second-largest buyout of a local drug company -- reflects a growing trend toward consolidation in the booming biotechnology sector, as companies join forces to develop and market a new wave of pharmaceutical breakthroughs. The result could be especially good news for San Diego County, where biotech already is a major source of high-paying jobs. The $1.8 billion that Elan will pay for Dura is second only to last year's $2.1 billion purchase of La Jolla-based Agouron Pharmaceuticals by Warner-Lambert, which itself was acquired by Pfizer. In June, San Diego's Signal Pharmaceuticals agreed to be acquired for $200 million by New Jersey-based Celgene. The Dura deal was announced yesterday amid a flurry of smaller biotechnology buyouts across the nation. Investors have been steadily pouring money into small biotech companies this year, betting on a pipeline of new drugs headed for regulatory approval -- and on the premium a large company might pay for a small one with a promising technology. Analysts agree that San Diego County, which has several small biotech companies with products in late-stage development, is likely to see more such deals in the future. "The name of the game for the drug industry is new products, and there is a dearth of new products coming out of the pipeline," said Corey Davis, an analyst with Chase H&Q.