By Lisa Seachrist

Washington Editor

Looking to expand its reach beyond sequencing the human genome and into functional genomics and personalized medicine, Celera Genomics Group registered for a public offering of 1.615 million shares of common stock.

At the stock's (NYSE:CRA) closing price of $225 Tuesday, which was up $23, Celera would gross $363 million in the offering. The company is scheduled to undergo a 2-for-1 stock split Feb. 18. The number of shares to be sold does not reflect that stock split.

Foster City, Calif.-based PE Corp. filed the registration statement with the SEC on behalf of its operating company, Celera, and has granted the offering's underwriters an overallotment option on 242,250 shares. Should that option be exercised, the company could gross an additional $54.5 million. The offering is being co-led by Morgan Stanley Dean Witter and Goldman, Sachs & Co., both of New York. It is being co-managed by SG Cowen Securities Corp. and ING Barings LLC, both of New York.

PE Corp. and Celera, of Rockville, Md., are under an SEC-mandated quiet period and were unavailable for comment.

According to the prospectus filed with SEC, Celera intends to use the proceeds of the offering to take advantage of new market opportunities emerging in the fields of functional genomics, proteomics and personalized health/medicine. The company will also use the funds for general corporate purposes, including possible acquisitions, alliances or collaborations.

In the prospectus, Celera notes its progress to date in sequencing the human genome is well ahead of its original schedule, making it an ideal time expand into new areas. Functional genomics is the understanding of gene and protein function and expression. It involves identifying the locations, level and timing of expression in addition to the functions of the proteins and genes. Ideally, functional genomics will provide pharmaceutical companies a means of rapidly identifying high-quality, validated drug targets. Proteomics should lead to new protein drugs and new markers important in the diagnosis of disease.

Celera also proposes to use information on single nucleotide polymorphisms (SNPs) derived from its human genome sequencing effort to develop diagnostic tests. Physicians and patients would be able to establish individual genetic profiles in order to customize treatment and health planning.

The company even intends to deliver such information via the Internet in order to take advantage of portal opportunities that may create e-commerce revenue opportunities.

While a number of companies are in the SNP business, Celera cites a number of advantages it has over its competitors, including the world's largest DNA sequencing and genotyping facility; access to proprietary, comprehensive genomics information; and extensive supercomputing infrastructure and bioinformatics capabilities. In addition, as an operating group of PE Corp., Celera has early access to new technologies developed by the PE Biosystems group.

For fiscal 1999, Celera had net revenues of $12.5 million and a net loss of $44.9 million. The company reported about 26 million shares outstanding on Dec. 31.