Cracking the genetic code that defines the human organism promised to revolutionize the biotechnology industry -- but did it? A few years after Celera Genomics and the multinational, publicly funded Human Genome Project announced they'd completed their genomic maps, researchers have gained a deeper understanding of the root causes of some diseases - and opened many a can of worms.

The biggest can of worm is proteomics, the study of proteins. Genes merely contain the recipe for proteins, which interact to do the real work. Figuring out which genes encode which proteins and how the various proteins relate is the next big step in biotech. That step is pretty big: The approximately 30,000 genes in the human genome can encode anywhere from one to as many as a dozen proteins, some of which can be linked to diseases. The task of mapping the sequences of amino acids that make up all these proteins is daunting, but some firms are crazy enough to try. Large Scale Biology, Compugen, and Syrrx are among the companies heading up the proteomics charge.

A new therapy that has emerged from the biotech boom is the use of monoclonal antibodies (MAbs), proteins that attack disease invaders known as antigens. Initially MAbs were produced by inserting specific antigens into mice, which would then produce antibodies; those antibodies would be harvested and fused with endlessly replicating cells the human body won't reject and then given to patients. Chimeric (half-mouse half-human), marketed MAbs include Centocor's clot-buster ReoPro and Genentech's non-Hodgkin's lymphoma treatment Rituxan, which brought in about $1.2 billion or almost 45% of its 2002 sales. Genentech is a leader in MAb research, and such firms as Abgenix and Medarex are trying to use mice to produce fully human MAbs.

Making the wealth of info coming from genomics and proteomics useful is a Herculean feat for technology developers. The bioinformatics market, which includes the equipment used to produce raw data, the software used to analyze and manage that data, as well as the data itself, is expected to pass $2 billion by 2007. The buyers? Drug companies needing new products. The providers? They include equipment makers such as Amersham Biosciences, software developers such as InforMax, and R&D firms such as Gene Logic. However, many firms are opting to use the information they generate to make drugs themselves: Human Genome Sciences kicked off this trend. Other firms, such as LION bioscience and Discovery Partners International, offer a full spectrum of service from R&D through drug development.

While medical biotechnology often is in the news, agricultural biotech can steal headlines occasionally. The idea of messing with the genes of the food we eat continues to meet resistance by many consumers, who shy away from the genetically modified "Frankenfoods" on the market. Even druggernauts have distanced themselves: Novartis and AstraZeneca merged and spun off their agrochemicals units (as Syngenta) to focus on drugs; and Pharmacia shed its majority stake in Monsanto in late 2002 before being gobbled up by Pfizer in 2003.

The US continues to lead the charge into biotech's murky depths: It boasts some 1,300 biotech-focused companies, about 300 of which are public. Europe, the sector's perennial bridesmaid, has some 1,600 private biotech concerns but only about 100 public companies. Pressured by investors to produce results (read: profits), many larger firms have begun beefing up their operations and pipelines by buying smaller, cash-poor startups with promising drug candidates or technology in hopes of accelerating their drive to profitability. The entire sector continues to be a smorgas board for hungry traditional pharmas which themselves are looking for their next blockbuster. Johnson & Johnson in early 2003 bought 3-Dimensional Pharmaceuticals, attracted by the company's drug discovery technology and pipeline of drug candidates.

Although the Biotech Boom has faded some in the deflated economy of the early 21st century, companies are still finding funding. When venture capital firms closed their coffers to the next Internet thing, some opened them to biotechs. In 2002 the life sciences sector attracted $4.7 billion or 22% of all VC funding that year. Such firms as Burrill & Co., New Enterprise Associates, and the international investor Apax Partners continue to fertilize the seedlings of tomorrow's biotech crop.

A particular area of growth that is well-funded is biodefense. With the entire world more attuned to biological warfare threats, governments and corporations are working to find means of detecting and stopping bio-threats such as anthrax, smallpox, SARS, and other killer bugs. The National Institutes of Health saw a healthy bump in its 2003 budget as part of the US' effort to improve biodefense. This money is used by universities, corporations, and other research efforts to develop antidotes, immunizations, biosensors, and other technology. Among the companies involved are Human Genome Sciences, Pollution Research and Control, British vaccine-maker Acambis, and Commonwealth Biotechnologies. more info: http://biz.yahoo.com/ic/profile/biotrx_1494.html