Zeneca Enters Gene Alliance With SEQ

UK bioscience group Zeneca has added to its alliances in the field ofgene discovery and pharmaceuticals research by entering into an agreement with US firm SEQ, based in Princeton, New Jersey, to provide further funding for the development of SEQ's proprietary DNA sequencing technology. Although financial details of the agreement have not been disclosed, Zeneca will obtain access to SEQ's gene sequencing services on preferential terms in addition to receiving the option to purchase a significant equity interest in the company.

Zeneca claims that the technology, referred to as Single Molecule Sequencing by Flouorescence, holds the potential to "achieve a fundamental breakthrough" in the speed and cost-effectiveness of DNA sequencing. Senior vice president of discovery research, Graham Boulnois, said that the deal complements the company's existing alliances with Incyte Pharmaceuticals, for use of its DNA sequence and expression data bases, and the technology access agreement in gene analysis with Molecular Dynamics and Amersham International (Marketletters passim).

Alliances Reduce Cost And Risk Furthermore, Zeneca says the deal highlights the company's strategy of entering into external alliances to augment its internal programs, which has the effect of sustaining growth and competitiveness, while at the same time managing risk. Business development manager Roger Lloyd told journalists that given the fierce competition among market leaders, it was vital to be "fleet of foot" in pursuing both early and late stage deals. Research section manager Norrie Russell echoed this sentiment and stressed the importance of ultra-high throughput sequencing to Zeneca's growth and the need to file intellectual property claims on gene targets. Dr Lloyd added that choice of partners requires careful consideration, as 40-50 deal prospects come into Zeneca per month, of which approximately 80% are unsolicited.