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Stocks C / Celera

URL:  http://boards.fool.com/quot-by-insisting-on-proprietary-rights-over-its-12148822.aspx

Subject:  Re: CRA News from Washington Post Date:  3/7/2000  3:58 PM
Author:  marinesci Number:  6524 of 36502

" By insisting on proprietary rights over its key loci, CRA limits the number of companies who can effectively research products based on a particular
locus. Let's remember -- there are 10 million loci on the genome, and no single biotech company has the size and/or capability to work on more than a
couple of them in a given decade [understanding that all loci are not important for disease research]."

What Celera is insisting on is proprietary rights for five years on the ability to create a commericial database for all those loci not the ability to use them. That would be dumb. Celera is a DATABASE company not a drug company, not a gene therapy company, but a database company they make their money by selling data to (currently) pharmas. How they sell access to the database is still evolving what they wanted to be surew was that another commercial gene database company couldn't also sell their data after a collaboration with the HGP. royalty fees for using their data would be great if there was way to prove that companies created a drug based on their data and if we weren't talking about 10 years from now before drugs get to market.

" Finally, unless CRA thinks they can handle [and hire] for the kind of personnel growth they would require to actually research and produce based on the
majority of their own patents (CRA has 350 employees = Merck has 57,500, for example) they can't do this alone. They need partners."

thats why they sell access to their database.



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