Roche Spearheads Diagnostics Effort

09 July 2001 00:00  [Source: ICB Americas]

Boosting its presence in genetics-based research, Roche Holding AG will develop biochip technologies in collaboration with CombiMatrix Corp. Roche says the recent completion of the Human Genome Project has opened the market for customizable biochips.

CombiMatrix, a majority-owned subsidiary of Acacia Research Corp., develops customizable active biochips, which are semiconductor-based tools to study gene activity and proteins. Biochips enable researchers to conduct rapid iterative experiments to analyze genomic information via high-throughput screening, reducing time and cost associated with drug discovery and development.

Under the 15-year deal, Roche Diagnostics will purchase, use and resell CombiMatrix's biochips (microarrays) and related technology for the production of customizable biochips. Roche in the future may use, develop and resell licensed CombiMatrix products in diagnostic applications, providing Combi-Matrix minimum payments and royalties over the first three years for products and R&D. The arrangement also includes technology development by both parties for standardized biochips.

The deal builds upon Roche Diagnostics' recent collaborations, specifically a five year alliance with deCode genetics to develop DNA-based diagnostic and predisposition screening products. Roche is positioning its diagnostic unit toward a future drug market in five or seven years that will hinge largely on genomics and proteomics-based pharmaceuticals.

Analysts are favorable on the transitioning. "The diagnostic division remains the really important part of Roche for earnings growth, with 13-plus percent revenue growth. The deCode genetics alliance provides a strong technology platform," says Morgan Stanley analyst Duncan Moore. "They've gained market share as some of their competitors, notably, Lifescan, stumbled in recent years."

Separately, Roche has licensed from ICN Pharmaceuticals Inc. the rights to Levovirin, a second-generation hepatitis C drug in Phase I clinical tests. Roche is developing Pegasys, its pegylated version of interferon alpha-2a for hepatitis C. Roche plans to combine it with levovirin to improve treatment and strengthen its market share against Schering-Plough's pegylated interferon. Schering licensed ribavirin from ICN for combination with its recently Food & Drug Administration (FDA)-approved PEG-Intron (peginterferon alfa-2b), developed by Enzon Inc. Roche's Pegasys (peginterferon alfa-2a) is in Phase III trials. Merrill Lynch estimates sales of $150 million by 2002, rising to $625 million by 2005.

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 18 January 2010)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly