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IBM invests in biotech firm

by John Geralds in Silicon Valley

30 Nov 2000

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IBM has installed a Linux-based cluster of eServers running DB2 at a US biotech company, displacing Oracle in the process. Big Blue has also made a minority equity investment in the firm.

In the latest initiative by IBM's life sciences business unit, which was formed in August, the company will install the cluster at Structural Bioinformatics (SBI) which will use IBM's DB2 Universal Database as its strategic development platform.

The database technology will be used to manage more than 2Tb of high-resolution 3D protein structures. IBM will also supply its WebSphere internet software infrastructure for accessing protein structure data on the web.

Jeff Augen, director of solution development at the life sciences unit, explained that the study of protein structures is an important part of biotechnology. "We feel SBI is a very strong leader in the field and has developed advanced technologies to generate models of proteins from primary genetic information," he said.

Although IBM has worked with other firms, including Incyte Genomics and First Genetic, this is the first equity investment it has made in a biotech company. Augen declined to reveal the financial details but said that Big Blue is a minority investor.

Using a subscription model, the two companies will work to make SBI's database of protein structure information more accessible to researchers worldwide via the internet. Joint marketing efforts are also planned.

SBI, which maintains some of the world's largest proprietary databases of atomic-resolution 3D protein structures, provides information to researchers for use in designing molecules that interact with proteins associated with diseases such as Aids, cancer, Alzheimer's and diabetes.

IBM said the latest investment is part of the company's plan to continue its efforts in the emerging biotech market, the value of which is predicted to exceed $9.5bn worldwide by 2003.

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