A Genomics Payoff?

At the beginning of the year, the Applera Corporation announced that it was melding its molecular diagnostic business, Celera Diagnostics, with its drug development company, the Rockville, Md.-based genomic pioneer, Celera Genomics. This move includes a workforce reduction of about 180 positions, with 60 more on the way, nearly all of which are in small-molecule drug development. Celera's transition away from developing therapeutics in-house to focus on the diagnostic potential of genomic information signals a shift in business models for this once high-flying company that started out as a database subscriptions business, shifted to small-molecule drug development, and is now changing its focus once again. Other high-profile genomics-based drug developers, however, are seeking their own path to survival and hoped-for profitability.