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Biocore
Last Updated: 5/17/2000
Reviewed By: Jorg Mitterdorfer, Ph.D.
Biacore International AB (BCOR)
Rapsgatan 7, S-754 50
Uppsala, Sweden
Phone: (212) 483-2323
http://www.biacore.com
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Imagine a Volvo:
reliable Swedish technology that's affordable, but not cheap. This describes
Biacore AB, the market leader in the development of technology for the quantitative
analysis of molecular interactions. Biacore's only serious competitor is
Evotec Biosystems AG (http://www.evotec.com, company review forthcoming),
a German company that utilizes a different technology and business model.
"Everything is great when it sits on a Chip." This header from
a H.M.S. Beagle (http://www.biomednet.com/hmsbeagle) article on DNA chips
applies nicely to the technology at the heart of Biacore's instrument product
line. Biacore's biosensor, also termed biochip, is used in combination with
fiber-optic detection technology and operates on the principle of "surface
plasmon resonance". Basically, the system detects changes in the light
reflected from the biochip's surface as molecules in solution (e.g., drugs,
proteins, or DNA) interact with molecules immobilized on the biochip (e.g.,
drug receptors, DNA-binding proteins, or antibodies). The signal generates
quantitative information that translates into kinetic and equilibrium binding
constants, which are measures of the specificity of the molecular interaction.
One major advantage of Biacore's technology is that neither interacting
molecule in the system needs to be labeled with radioactive or fluorescent
moieties. Therefore, scientists can omit laborious chemistry and their results
will not be affected by changes in the physical or chemical properties of
the molecules they are studying. The major challenge in the system lies
in the immobilization step, which occurs via high affinity molecules to
which the molecule being studied is linked.
Biacore's technology dates back to the "pre-genomics" era and
is covered by 24 patents in the US and in Europe. A search of the biomedical
literature produced over 350 papers, indicating that Biacore's technology
is becoming widely used. More importantly, the technology will likely be
of tremendous value in the "post-genomics" era. Biacore is currently
incorporating high throughput protein chips into their product platform.
The latest commercially available Biacore instrument can be used in combination
with mass spectroscopy for protein analysis. This will allow for the high
throughput discovery of potential drug targets. As advertised on the Biacore
web page, another potentially profitable area the technology can be applied
to is the food industry. For example, fortified foods (nutraceuticals) can
be analyzed for vitamin content using antibody-coated biochips. Food pathogens
can also be detected as well as residual antibiotics and hormones from meat
products.
Biacore was incorporated in 1984 as Pharmacia Biosensor AB. After introducing
the first Biacoreinstrument in 1990, the company went public in 1996. Biacore
shares are traded on Nasdaq (BCOR), the Swedish Stock Exchange (BCOR), and
in Germany at the Frankfurt and Berlin Stock Exchange (WKN: 903827). Pharmacia
Upjohn (PHA) owns 41% of the nearly 10 million outstanding shares of BCOR.
Market capitalization is currently $405 million with a return on investment
of 11% for the last twelve months and a P/E ratio of 96. BCOR has earned
a Morningstar rating of "A" for profitability and "A+"
for financial health but only a "D" for sales. A recent unaudited
report listed an increase in sales of 28% (compared to the same quarter
in 1999), mainly due to a 79% increase of sales in the Americas. Biacore's
customers include academic research institutions, biotechnology firms, and
large pharmaceutical companies.
Biacore maintains operations in the US and across the world in Europe, Japan,
Australia, and New Zealand. The company keeps close ties with its customers
through a web-based user forum, customer service support, scientific and
technical support, Biacore symposia, and a newsletter. Recently, Biacore
established several collaborations and partnerships with well known firms
including Pharmacia Upjohn, SmithKline Beecham, Boehringer Ingelheim, Millennium
Pharmaceuticals, and the University of Utah for the evaluation of new instrument
prototypes.
Beyond their names and positions, I was unable to find any more information
about the management team since the company's web page did not feature any
biographical data. One reason for this lack of information may be a recent
restructuring up senior management. At a general meeting on May 5, 2000,
Dr. Ulf Joensson, Executive Vice President and Head of Technical Operations
and Strategic Marketing, was appointed President of Biacore. The former
President and CEO, Lars-Goeran Andren, became the Executive Chairman and
now focuses on Biacore's drug discovery business. Lars-Olof Forslund is
an Executive Vice President and the CFO. Biacore has an additional 204 employees,
up 23 from one year ago.
In my opinion, Biacore is utterly credible as a "global leader in the
development, manufacture, and marketing of innovative and unique products
to detect and monitor biomolecular binding." I don't see any reason
why this will change any time soon--competitors like Evotec and patent infringement
lawsuits (Biacore won a recent trial) will only remind Biacore not to fall
asleep at the wheel of their Volvo. |
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