National Editor

"Genomics" in a company title might longer bestow the investor blessing it once did - and might even be a curse - but U.S. Genomics Inc., despite its name, raised $25 million to stay on the road toward commercializing an initial set of single molecule detection products for RNA analysis.

"The tools space was a pretty tough space to be for a while," acknowledged Courtney Harris, communications manager for the privately held, Woburn, Mass.-based firm, but she said U.S. Genomics' platform "has both near-term and long-term applications, which makes it a really stable investment."

That platform, called GeneEngine, enables single molecule detection and analysis of DNA, RNA and proteins without amplification, thus making drug development faster. GeneEngine works in the same way the body reads DNA, tracking DNA at speeds of 10,000 to 30,000 base pairs per second, linearizing it and allowing for direct reads.

"We found that our main benefit is our ability to look at single molecules," Harris said, for example, specific populations of RNA out of a total population. "Those are the first applications that will be on the market," she added, although an exact timeline has not been decided.

"We're hoping to begin the commercialization process within a year's time frame," Harris told BioWorld Today, by placing first-generation instruments at key sites such as academic institutions or other locations.

"That plan is still in the works," she added, noting that the company just brought aboard new CEO Stephen DeFalco, formerly a senior vice president of Boston-based PerkinElmer Inc., in late March.

Harris said the company intends to devise an application for functional genomics and proteomics, and aim for large-scale genome mapping, all based on GeneEngine, which combines nanofluidics, optical engineering and labeling strategies.

Mark Peterson, president of Fidelity Biosciences Group, a division of Boston-based Fidelity Investments, and Ben Bronstein, managing director of Zero Stage Capital, of Cambridge, Mass., have been named to U.S. Genomics' board, which also includes gene sequencing pioneer Craig Venter.

The financing follows a $17 million round about a year ago, and brings U.S. Genomics' total funding since its inception in 1997 to $50 million. (See BioWorld Today, April 5, 2001.)

"This will bring us to a self-sustainable position," Harris said, adding that the company's burn rate as it ramps up operations is not clear. U.S. Genomics has two academic collaborations but no corporate partners, she said.

Ultimately, the company's platform will bring the dream of personal genomics nearer, Harris predicted.

"It really means [firms using the platform will] have not only a greater understanding of the way DNA and proteins affect your life, but will be able to tailor better drugs," she said - not only for therapy but also for prevention.

"Your genotype may show you are a candidate for Alzheimer's disease at age 60, but if you start taking this drug, you may never have the symptoms," Harris said.