Applera
Encyclopedia
Applera Corporation of Norwalk, Connecticut
, at #874 on the 2007 Fortune 1000
list, was one of the largest international biotechnology
companies based in the United States. It was the successor company to what was the Life Sciences Division of Perkin-Elmer Corporation. Applera was not publicly-traded, but instead it consisted of two major groups which are publicly-traded tracking stock
s in the proteomics
industrial sector. These two groups were the S&P 500
listed Applera Corp-Applied Biosystems
Group of Foster City, California
, and Applera Corp-Celera Genomics
Group of Rockville, Maryland
. In 2006, the company spun off the Celera Genomics group and changed its name from Applera to Applied Biosystems
.
As the former Perkin-Elmer (formerly ), Applera had a history dating back to 1931. But more precisely, its history dates from 1999, when Perkin-Elmer effectively split in half, and sold off its more traditional half of the business to EG&G
Inc. (formerly ). As part of the deal, it also sold the Perkin-Elmer name, because that most properly associated with that traditional line of products, and EG&G then became the new PerkinElmer . At that point the remaining Connecticut Life Sciences
company issued its two tracking stocks, and also changed its own name to PE Corporation. The Applied Biosystems group had earlier already been renamed PE Biosystems, and it retained that name in the first incarnation of its tracking stock (formerly ). In 2000, the Applied Biosystems name was restored to the group, with the new stock ticker symbol ABI, and PE Corporation became Applera, a combination of its two components' names, Appl(iedCel)era.
In the early 1990s, Perkin-Elmer, which had been a maker of diverse electronic instruments and analytical and optical equipment, established strong ties with groups closely involved with the business of decoding the human genome
. By the late 1990s, Perkin-Elmer's Life Sciences
division had become centrally involved in highly-publicized intense competition against the public consortium that was also working on the massive task. Consequently Perkin-Elmer's people and companies became among the most famous players of the decade in biotechnology
and in that segment of the technology bubble. In the process, Perkin-Elmer divided and transformed itself into Applera, a company entirely focused in life sciences.
Beginning in 1990, the U.S. government approved financing to support the Human Genome Project
(HGP). Dr. James D. Watson
, who founded the public consortium, forecast that the project could be completed in 15 years from its 1990 starting date, at a cost of US$3 billion. The HGP was a public consortium of eight university centers funded through the U.S. Department of Energy, the National Institutes of Health
and the Wellcome Trust
of London. The government-backed project targeted completion of human DNA mapping by the year 2005.
In 1993, Perkin-Elmer acquired a key equipment maker, Applied Biosystems
, Inc., and that stock's symbol ABIO ceased trading on the NASDAQ
exchange, as it became a division of Perkin-Elmer. Michael W. Hunkapiller, Ph.D., who had been Applied Biosystem's Chairman, President and CEO since 1983, became a Senior Vice President of Perkin-Elmer, and President of the Applied and PE Biosystems Divisions.
In 1994, Perkin-Elmer reported net revenues of over $1 billion, of which Life Sciences accounted for 42% of the business. The company has 5,954 employees. The new competitive genomics
industry had formed for the development of new pharmaceuticals, based on the work of the Human Genome Project. The Applied Biosystems Division made thermal cycler
s and automated sequencers for these new genomics companies.
In 1995, Perkin-Elmer sold its 30,000th thermal cycler. To meet Human Genome Project goals, Perkin-Elmer developed mapping kits with markers every 10 million bases along each chromosome
. Also that year, DNA fingerprinting using polymerase chain reaction
(PCR) became accepted in court as reliable forensic evidence. In 1993, Perkin-Elmer had become the world's leading manufacturer of instruments and reagents for (PCR). It marketed PCR reagents kits in alliance with Hoffman-La Roche Inc.
In 1996, Perkin-Elmer acquired Tropix, Inc., a chemiluminescence company, for its life sciences division.
Inc. became President and Chief Executive Officer of Perkin-Elmer and reorganized it into two separate operating divisions, Analytical Instruments and PE Applied Biosystems. The PE Applied Biosystems division accounted for half of Perkin-Elmer's total revenue, with net revenues up by 26%.
In 1997, Perkin-Elmer revenues reached almost US$1.3 billion, of which PE Applied Biosystems was US$653 million. Acquisitions included GenScope, Inc., and Linkage Genetics, Inc., which combined with Zoogen to form PE AgGen, focused on genetic analysis services for plant and animal breeding. Partnerships were begun with Hyseq, Inc., on the new DNA chip technology, and also with Tecan U.S., Inc., on combinatorial chemistry
automation systems, and also with Molecular Informatics, Inc. on genetic data management and analysis automated systems.
In 1998, Perkin-Elmer acquired PerSeptive Biosystems (formerly ), a leader in the bio-instrumentation field where it made biomolecule
purification systems for protein analysis. Noubar B. Afeyan, Ph.D., had been the founder, Chairman, and CEO of PerSeptive, and after the acquisition he became a Senior Vice President and Chief Business Officer of Perkin-Elmer. He had earlier founded and co-built several successful life science and technology startup companies through the 1990s, after earning his Ph.D. in Biochemical Engineering
from the Massachusetts Institute of Technology
in 1987.
By 1998, Perkin-Elmer had a presence on the World Wide Web
at http://www.perkin-elmer.com.
While planning the next new generation of machines, PE Biosystems' president, Michael W. Hunkapiller, calculated that it would be possible for their own private industry to decode the human genome before the academic consortium could complete it. The company would decode all of the 3.5 billion chemical letters in the human DNA
by 2001, at a cost of only US$200 million, about 1/10 of the consortium projected cost of US$3 billion. However, it would mean starting from scratch, eight years already into the consortium's program. It was a bold prediction, given that the consortium target date set by Dr. Watson back in 1990 had been the forward year of 2005, only seven years away, and with the consortium already half the way to the completion target date by then.
Also, it meant that Dr. Hunkapiller's idea would require competing against his own customers, to all of whom Applied Biosystems sold its sequencing machines and their chemical reagents. However, he calculated that it would also mean doubling the market for that equipment.
Hunkapiller brought in Dr. J. Craig Venter to direct the project. Tony L. White, president of the Perkin-Elmer Corporation backed Hunkapiller on the venture. Perkin-Elmer's interest was driven largely by its monopoly, through the equipment of Applied Biosystems, of the market for automated DNA sequencing
machines. Dr. Venter boldly declared to the media that he would complete the genome decoding by 2001. That bold pronouncement prompted the academic consortium to accelerate their own deadline by a couple years, to 2003.
In May 1998, the company's newly formed unit to accomplish the task, Celera Genomics Group, in Rockville, Maryland, was created to become the definitive source of genomic and related medical information with the goal of sequencing the human genome by the year 2001. Celera became the primary commercial competitor to the government-funded effort of the Human Genome Project. Venter became President and Chief Scientific Officer of Celera.
At the time, Venter operated his own independent lab, The Institute for Genomic Research
(TIGR), which had developed a "random shotgun" approach to DNA decoding, making it the most prolific genome lab in the world.
At year end 1998, the PE Biosystems Group's sales reached US$940 million. Its chief new genomics
instrument was the ABI PRISM 3700 DNA Analyzer, which it had developed in conjunction with Hitachi, Ltd.
The new machine, an electrophoresis
-based genetic analysis system, cost US$300,000 each, but was a major leap beyond its predecessor, the 377, and was fully automated, allowing genetic decoding to run around the clock with little supervision. According to Venter, the machine was so revolutionary that it could decode in a single day the same amount of genetic material that most DNA labs could produce in a year.
The partnership sold hundreds of the 3700 analyzers to Celera, and also to others worldwide. The public consortium also bought one of the Applied Biosytems 3700 sequencers, and had plans to buy 200 more. The machine proved to be so fast that by late March 1999 the consortium announced that it had revised its timeline, and would release by the Spring of 2000 a "first draft sequence" for 80% of the human genome.
/A, to enter a reincorporation merger with a subsidiary of PE Corporation of Delaware. Shareholders of the New York corporation stock (NYSE:PKN) would receive shares in two new stocks instead.
On April 27, 1999, the shareholders of Perkin-Elmer Corporation approved the reorganization of Perkin-Elmer into a pure-play life science company, resulting in the name change to PE Corporation and the de-listing of the PKN stock. Each share of the Perkin-Elmer New York (PKN) was to be exchanged for one share and for ½ of a share respectively of the two new common share tracking stocks for the two component Life Sciences groups, PE Biosystems Group (NYSE:PEB) and Celera Genomics Group (NYSE:CRA). (PKN now)
On April 28, 1999, the two replacement tracking stocks for the new PE Corporation were issued to shareholders. The Pacific Stock Exchange began trading PE Corporation options for the two new stocks that day. Dr. Michael W. Hunkapiller remained as Senior Vice President of PE Corporation, and as president of PE Biosystems. Dr. Afeyan initiated and oversaw the creation of the tracking stock for Celera Genomics Group. Then later in 1999 Dr. Afeyan left, to co-found Flagship Ventures, an early stage entrepreneur
ial venture capital
firm. Dr. J. Craig Venter remained as Senior Vice President of PE Corporation and also President of Celera Genomics Group. Tony L. White remained as PE Corporation's Chairman, President and Chief Executive Officer.
Other officers who remained in PE Corporation included William B. Sawch, as Senior Vice President, General Counsel and Secretary.
On May 6, 1999,the reorganization was made effective, as the Perkin-Elmer Corporation was merged into a temporarily created subsidiary of PE Corporation, a new Delaware corporation. The recapitalization of the company resulted in issuance of the two new classes of common stock, called PE Corporation-PE Biosystems Group Common Stock and PE Corporation-Celera Genomics Group Common Stock. On that date, trading began in both new stocks on the New York Stock Exchange
, to great excitement.
On May 28, 1999 as part of the recapitalization and reorganization, the company completed the sale of its traditional business unit, the Analytical Instruments Division to EG&G Inc., along with the Perkin-Elmer name, for US$425 million. EG&G was based in Wellesley, Massachusetts
, and made products for diverse industries including automotive, medical, aerospace and photography. On July 14, 1999 that new analytical instruments maker PerkinElmer cut 350 jobs, or 12%, in its cost reduction reorganization.
On June 17, 1999 the Board of PE Corporation announced a two-for-one split of PE Biosystems Group Common Stock.
At year end 1999, after the major divestment that year of the former Analytical Instruments Division, the new PE Corporation assets totalled over US$1.5 billion, split between the two Life Sciences groups. Of that, PE Biosystems Group, with 3,500 employees had net revenues of over US$1.2 billion.
By June 2000, the genomics segment of the technology bubble was peaking. Celera Genomics (CRA) and PE Biosystems (PEB) were among five genetics pioneers leading at that time, along with Incyte Genomics , Human Genome Sciences
, and Millennium Pharmaceuticals
. All five of those stocks by then had exceeded a price above $100 a share in the market, before ultimately crashing back down.
to report its announcement of the change of its name to Applera Corporation. At the same time, PE Biosystems Group changed its name to Applied Biosystems Group, and changed its ticker symbol from PEB to ABI. Both name changes became effective November 30, 2000. Also that date, the parent corporation web site address changed from http://www.pecorporation.com to http://www.applera.com.
The combined Applera then had 5,000 employees. PE/Applied Biosystems Group's net revenues rose to almost US$1.4 billion. Celera that year made milestone headlines when it announced that it had completed the sequencing and first assembly of the two largest genomes in history, that of the fruit fly
, and of the human.
In 2001, the Applied Biosystems division of Applera reached revenues of US$1.6 billion, and developed a new workstation instrument specifically for the new field of proteomics
, which had become Celera's new core business focus, as it shifted away from gene discovery. The instrument analyzed 1,000 protein samples per hour.
In January 2002, J. Craig Venter was pushed out of Celera, when it was decided that the group would make pharmaceuticals instead. Venter lacked experience in pharmaceutical development.
On April 22, 2002, the Celera Genomics Group announced its decision to abandon what had been its core business since its 1998 inception, and to shift the role of marketing data from its genetic database over to its sister company, the Applied Biosystems Group. Celera would instead develop pharmaceutical drugs. Applera CEO Tony L. White had noted earlier that the database business would distract from pharmaceutical development.
Applied Biosystems was a better fit for the database, because Applied already had the huge sales force in place for the marketing of its instruments. Plans were to expand those sales and those of the database into an electronic commerce system.
The database itself, Celera Discovery System (CDS), would remain with Celera, because of shareholder approval complications. Celera would retain responsibility for its maintenance and support to existing customers, and would receive royalties from Applied Biosystems. The database revenues were expected to reach US$100 million for the June fiscal year end, which would be its first profitable year. But it had always faced the problem that its public competitor, the consortium project, provides free data from its own database.
In 2002, Applied Biosystems Group again posted revenues of US$1.6 billion for the year.
In 2004, the long-term Applied Biosystems president, Mike Hunkapiller, retired and Cathy Burzik, who had joined the Group in 2003, replaced him as President of Applied Biosystems Group.
Norwalk, Connecticut
Norwalk is a city in Fairfield County, Connecticut, United States. According to the 2010 U.S. Census, the population of the city is 85,603, making Norwalk sixth in population in Connecticut, and third in Fairfield County...
, at #874 on the 2007 Fortune 1000
Fortune 1000
Fortune 1000 is a reference to a list maintained by the American business magazine Fortune. The list is of the 1000 largest American companies, ranked on revenues alone...
list, was one of the largest international biotechnology
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...
companies based in the United States. It was the successor company to what was the Life Sciences Division of Perkin-Elmer Corporation. Applera was not publicly-traded, but instead it consisted of two major groups which are publicly-traded tracking stock
Tracking stock
Tracking stock or targeted stock are specialized equity offerings issued by a company that is based on the operations of a wholly owned subsidiary of a diversified firm. Therefore, the tracking stock will be traded at a price related to the operations of the specific division of the company being...
s in the proteomics
Proteomics
Proteomics is the large-scale study of proteins, particularly their structures and functions. Proteins are vital parts of living organisms, as they are the main components of the physiological metabolic pathways of cells. The term "proteomics" was first coined in 1997 to make an analogy with...
industrial sector. These two groups were the S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
listed Applera Corp-Applied Biosystems
Applied Biosystems
Applied Biosystems, Inc. started as GeneCo , was the name of a pioneer biotechnology company founded in 1981 in Foster City, California, in the San Francisco Bay Area...
Group of Foster City, California
Foster City, California
Foster City is an affluent planned city located in San Mateo County, California, 94404. As of the 2010 census, the city had a total population of 30,567. Forbes ranked Foster City #10 on their 2009 list of America's Top 25 Towns to Live Well. Money has also recognized Foster City multiple times as...
, and Applera Corp-Celera Genomics
Celera Genomics
Celera Corporation was a business unit of the Applera Corporation, but was spun off in July 2008 to become an independent publicly traded company. In May 2011 Quest Diagnostics Incorporated completed the acquisition of Celera, which thus became a wholly owned subsidiary...
Group of Rockville, Maryland
Rockville, Maryland
Rockville is the county seat of Montgomery County, Maryland, United States. It is a major incorporated city in the central part of Montgomery County and forms part of the Baltimore-Washington Metropolitan Area. The 2010 U.S...
. In 2006, the company spun off the Celera Genomics group and changed its name from Applera to Applied Biosystems
Applied Biosystems
Applied Biosystems, Inc. started as GeneCo , was the name of a pioneer biotechnology company founded in 1981 in Foster City, California, in the San Francisco Bay Area...
.
As the former Perkin-Elmer (formerly ), Applera had a history dating back to 1931. But more precisely, its history dates from 1999, when Perkin-Elmer effectively split in half, and sold off its more traditional half of the business to EG&G
EG&G
EG&G, formally known as Edgerton, Germeshausen, and Grier, Inc., is a United States national defense contractor and provider of management and technical services. The company was involved in contracting services to the United States government during World War II, and conducted weapons research and...
Inc. (formerly ). As part of the deal, it also sold the Perkin-Elmer name, because that most properly associated with that traditional line of products, and EG&G then became the new PerkinElmer . At that point the remaining Connecticut Life Sciences
Life sciences
The life sciences comprise the fields of science that involve the scientific study of living organisms, like plants, animals, and human beings. While biology remains the centerpiece of the life sciences, technological advances in molecular biology and biotechnology have led to a burgeoning of...
company issued its two tracking stocks, and also changed its own name to PE Corporation. The Applied Biosystems group had earlier already been renamed PE Biosystems, and it retained that name in the first incarnation of its tracking stock (formerly ). In 2000, the Applied Biosystems name was restored to the group, with the new stock ticker symbol ABI, and PE Corporation became Applera, a combination of its two components' names, Appl(iedCel)era.
Board of directors
The Applera Corporation Directors oversaw the parent corporation along with the operations of both tracking stock groups, and consequently they had the responsibility of fairly balancing the interests of both groups of investors in each stock.- Joseph F. Abely, Jr., Director since 1984, retired Chairman and CEO of Sea-Land Corporation
- Robert H. Hayes, Ph.D., Director since 1985, Philip Caldwell Professor at Harvard Business SchoolHarvard Business SchoolHarvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
- Richard H. Ayers, Director since 1988, retired Chairman and CEO of The Stanley Works
- Jean-Luc Bélingard, Director since 1993, CEO of Pierre Fabre S.A.
- Carolyn W. Slayman, Ph.D., Director since 1994, Sterling ProfessorSterling ProfessorA Sterling Professorship is the highest academic rank at Yale University, awarded to a tenured faculty member considered one of the best in his or her field...
and Deputy Dean of Yale University School of Medicine - Orin R. SmithOrin R. SmithOrin R. Smith was Chairman and Chief Executive Officer of the Engelhard Corporation from 1995 to 2000. He joined Engelhard as Vice President in 1977, became President in 1984. Prior to joining Engelhard, Smith served as President of M&T Chemicals. Smith served on the Advisory Board for the New...
, Director since 1995, Chairman and CEO of Engelhard Corporation - Tony L. White, Director since 1995, Chairman, President and CEO of Applera Corporation
- Georges C. St. Laurent, Jr., Director since 1996, principal of St. Laurent Properties and former CEO of Western BankWestern bankWestern bank is a title used by various financial institutions. It may refer to:* Westernbank, a bank in Mayagüez, Puerto Rico.* Canadian Western Bank , a bank located in Edmonton, Alberta, Canada....
- Arnold J. LevineArnold J. LevineArnold J. Levine, is a United States Molecular biologist. He was awarded the 1998 Louisa Gross Horwitz Prize for Biology or Biochemistry and was thefirst recipient of the Albany Medical Center Prize in Medicine and Biomedical Research in 2001 for his discovery of the tumor suppressor protein p53...
, Ph.D., Director since 1999, President and CEO of Rockefeller UniversityRockefeller UniversityThe Rockefeller University is a private university offering postgraduate and postdoctoral education. It has a strong concentration in the biological sciences. It is also known for producing numerous Nobel laureates... - Theodore E. Martin, Director since 1999, retired President and CEO of Barnes GroupBarnes GroupBarnes Group is a manufacturer of industrial and aerospace components. The company produces springs for airframes, electronics, machinery, stamping presses and turbine engines in addition to providing repair and logistics support primarily on spare parts for the aerospace industry....
Inc. - James R. Tobin, Director since 1999, President and CEO of Boston ScientificBoston ScientificThe Boston Scientific Corporation , is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, neuromodulation, neurovascular intervention,...
Corporation
History
The original Perkin-Elmer, and then its successor PE Corporation and Applera Corporation have been headquartered in Norwalk, Connecticut. The company address is at 50 Danbury Rd.In the early 1990s, Perkin-Elmer, which had been a maker of diverse electronic instruments and analytical and optical equipment, established strong ties with groups closely involved with the business of decoding the human genome
Human genome
The human genome is the genome of Homo sapiens, which is stored on 23 chromosome pairs plus the small mitochondrial DNA. 22 of the 23 chromosomes are autosomal chromosome pairs, while the remaining pair is sex-determining...
. By the late 1990s, Perkin-Elmer's Life Sciences
Life sciences
The life sciences comprise the fields of science that involve the scientific study of living organisms, like plants, animals, and human beings. While biology remains the centerpiece of the life sciences, technological advances in molecular biology and biotechnology have led to a burgeoning of...
division had become centrally involved in highly-publicized intense competition against the public consortium that was also working on the massive task. Consequently Perkin-Elmer's people and companies became among the most famous players of the decade in biotechnology
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...
and in that segment of the technology bubble. In the process, Perkin-Elmer divided and transformed itself into Applera, a company entirely focused in life sciences.
Beginning in 1990, the U.S. government approved financing to support the Human Genome Project
Human Genome Project
The Human Genome Project is an international scientific research project with a primary goal of determining the sequence of chemical base pairs which make up DNA, and of identifying and mapping the approximately 20,000–25,000 genes of the human genome from both a physical and functional...
(HGP). Dr. James D. Watson
James D. Watson
James Dewey Watson is an American molecular biologist, geneticist, and zoologist, best known as one of the co-discoverers of the structure of DNA in 1953 with Francis Crick...
, who founded the public consortium, forecast that the project could be completed in 15 years from its 1990 starting date, at a cost of US$3 billion. The HGP was a public consortium of eight university centers funded through the U.S. Department of Energy, the National Institutes of Health
National Institutes of Health
The National Institutes of Health are an agency of the United States Department of Health and Human Services and are the primary agency of the United States government responsible for biomedical and health-related research. Its science and engineering counterpart is the National Science Foundation...
and the Wellcome Trust
Wellcome Trust
The Wellcome Trust was established in 1936 as an independent charity funding research to improve human and animal health. With an endowment of around £13.9 billion, it is the United Kingdom's largest non-governmental source of funds for biomedical research...
of London. The government-backed project targeted completion of human DNA mapping by the year 2005.
In 1993, Perkin-Elmer acquired a key equipment maker, Applied Biosystems
Applied Biosystems
Applied Biosystems, Inc. started as GeneCo , was the name of a pioneer biotechnology company founded in 1981 in Foster City, California, in the San Francisco Bay Area...
, Inc., and that stock's symbol ABIO ceased trading on the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
exchange, as it became a division of Perkin-Elmer. Michael W. Hunkapiller, Ph.D., who had been Applied Biosystem's Chairman, President and CEO since 1983, became a Senior Vice President of Perkin-Elmer, and President of the Applied and PE Biosystems Divisions.
In 1994, Perkin-Elmer reported net revenues of over $1 billion, of which Life Sciences accounted for 42% of the business. The company has 5,954 employees. The new competitive genomics
Genomics
Genomics is a discipline in genetics concerning the study of the genomes of organisms. The field includes intensive efforts to determine the entire DNA sequence of organisms and fine-scale genetic mapping efforts. The field also includes studies of intragenomic phenomena such as heterosis,...
industry had formed for the development of new pharmaceuticals, based on the work of the Human Genome Project. The Applied Biosystems Division made thermal cycler
Thermal cycler
The thermal cycler is a laboratory apparatus used to amplify segments of DNA via the polymerase chain reaction process. The device has a thermal block with holes where tubes holding the PCR reaction mixtures can be inserted...
s and automated sequencers for these new genomics companies.
In 1995, Perkin-Elmer sold its 30,000th thermal cycler. To meet Human Genome Project goals, Perkin-Elmer developed mapping kits with markers every 10 million bases along each chromosome
Chromosome
A chromosome is an organized structure of DNA and protein found in cells. It is a single piece of coiled DNA containing many genes, regulatory elements and other nucleotide sequences. Chromosomes also contain DNA-bound proteins, which serve to package the DNA and control its functions.Chromosomes...
. Also that year, DNA fingerprinting using polymerase chain reaction
Polymerase chain reaction
The polymerase chain reaction is a scientific technique in molecular biology to amplify a single or a few copies of a piece of DNA across several orders of magnitude, generating thousands to millions of copies of a particular DNA sequence....
(PCR) became accepted in court as reliable forensic evidence. In 1993, Perkin-Elmer had become the world's leading manufacturer of instruments and reagents for (PCR). It marketed PCR reagents kits in alliance with Hoffman-La Roche Inc.
In 1996, Perkin-Elmer acquired Tropix, Inc., a chemiluminescence company, for its life sciences division.
PE Applied Biosystems Division
Also In 1996, Tony L. White from Baxter InternationalBaxter International
Baxter International Inc. , is an American health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions...
Inc. became President and Chief Executive Officer of Perkin-Elmer and reorganized it into two separate operating divisions, Analytical Instruments and PE Applied Biosystems. The PE Applied Biosystems division accounted for half of Perkin-Elmer's total revenue, with net revenues up by 26%.
In 1997, Perkin-Elmer revenues reached almost US$1.3 billion, of which PE Applied Biosystems was US$653 million. Acquisitions included GenScope, Inc., and Linkage Genetics, Inc., which combined with Zoogen to form PE AgGen, focused on genetic analysis services for plant and animal breeding. Partnerships were begun with Hyseq, Inc., on the new DNA chip technology, and also with Tecan U.S., Inc., on combinatorial chemistry
Combinatorial chemistry
Combinatorial chemistry involves the rapid synthesis or the computer simulation of a large number of different but structurally related molecules or materials...
automation systems, and also with Molecular Informatics, Inc. on genetic data management and analysis automated systems.
In 1998, Perkin-Elmer acquired PerSeptive Biosystems (formerly ), a leader in the bio-instrumentation field where it made biomolecule
Biomolecule
A biomolecule is any molecule that is produced by a living organism, including large polymeric molecules such as proteins, polysaccharides, lipids, and nucleic acids as well as small molecules such as primary metabolites, secondary metabolites, and natural products...
purification systems for protein analysis. Noubar B. Afeyan, Ph.D., had been the founder, Chairman, and CEO of PerSeptive, and after the acquisition he became a Senior Vice President and Chief Business Officer of Perkin-Elmer. He had earlier founded and co-built several successful life science and technology startup companies through the 1990s, after earning his Ph.D. in Biochemical Engineering
Biochemical engineering
Biochemical engineering is a branch of chemical engineering or biological engineering that mainly deals with the design and construction of unit processes that involve biological organisms or molecules, such as bioreactors...
from the Massachusetts Institute of Technology
Massachusetts Institute of Technology
The Massachusetts Institute of Technology is a private research university located in Cambridge, Massachusetts. MIT has five schools and one college, containing a total of 32 academic departments, with a strong emphasis on scientific and technological education and research.Founded in 1861 in...
in 1987.
PE Biosystems Division
In 1998, Perkin-Elmer formed the PE Biosystems division, by consoliding Applied Biosystems, PerSeptive Biosystems, Tropix and PE Informatics. Informatics was formed from the Perkin-Elmer combination of two other acquisitions, Molecular Informatics and Nelson Analytical Systems, with existing units of Perkin-Elmer.By 1998, Perkin-Elmer had a presence on the World Wide Web
World Wide Web
The World Wide Web is a system of interlinked hypertext documents accessed via the Internet...
at http://www.perkin-elmer.com.
While planning the next new generation of machines, PE Biosystems' president, Michael W. Hunkapiller, calculated that it would be possible for their own private industry to decode the human genome before the academic consortium could complete it. The company would decode all of the 3.5 billion chemical letters in the human DNA
DNA
Deoxyribonucleic acid is a nucleic acid that contains the genetic instructions used in the development and functioning of all known living organisms . The DNA segments that carry this genetic information are called genes, but other DNA sequences have structural purposes, or are involved in...
by 2001, at a cost of only US$200 million, about 1/10 of the consortium projected cost of US$3 billion. However, it would mean starting from scratch, eight years already into the consortium's program. It was a bold prediction, given that the consortium target date set by Dr. Watson back in 1990 had been the forward year of 2005, only seven years away, and with the consortium already half the way to the completion target date by then.
Also, it meant that Dr. Hunkapiller's idea would require competing against his own customers, to all of whom Applied Biosystems sold its sequencing machines and their chemical reagents. However, he calculated that it would also mean doubling the market for that equipment.
Hunkapiller brought in Dr. J. Craig Venter to direct the project. Tony L. White, president of the Perkin-Elmer Corporation backed Hunkapiller on the venture. Perkin-Elmer's interest was driven largely by its monopoly, through the equipment of Applied Biosystems, of the market for automated DNA sequencing
DNA sequencing
DNA sequencing includes several methods and technologies that are used for determining the order of the nucleotide bases—adenine, guanine, cytosine, and thymine—in a molecule of DNA....
machines. Dr. Venter boldly declared to the media that he would complete the genome decoding by 2001. That bold pronouncement prompted the academic consortium to accelerate their own deadline by a couple years, to 2003.
In May 1998, the company's newly formed unit to accomplish the task, Celera Genomics Group, in Rockville, Maryland, was created to become the definitive source of genomic and related medical information with the goal of sequencing the human genome by the year 2001. Celera became the primary commercial competitor to the government-funded effort of the Human Genome Project. Venter became President and Chief Scientific Officer of Celera.
At the time, Venter operated his own independent lab, The Institute for Genomic Research
The Institute for Genomic Research
The Institute for Genomic Research was a non-profit genomics research institute founded in 1992 by Craig Venter in Rockville, Maryland, United States. It is now a part of the J. Craig Venter Institute.-History:...
(TIGR), which had developed a "random shotgun" approach to DNA decoding, making it the most prolific genome lab in the world.
At year end 1998, the PE Biosystems Group's sales reached US$940 million. Its chief new genomics
Genomics
Genomics is a discipline in genetics concerning the study of the genomes of organisms. The field includes intensive efforts to determine the entire DNA sequence of organisms and fine-scale genetic mapping efforts. The field also includes studies of intragenomic phenomena such as heterosis,...
instrument was the ABI PRISM 3700 DNA Analyzer, which it had developed in conjunction with Hitachi, Ltd.
Hitachi, Ltd.
is a Japanese multinational conglomerate headquartered in Marunouchi 1-chome, Chiyoda, Tokyo, Japan. The company is the parent of the Hitachi Group as part of the larger DKB Group companies...
The new machine, an electrophoresis
Electrophoresis
Electrophoresis, also called cataphoresis, is the motion of dispersed particles relative to a fluid under the influence of a spatially uniform electric field. This electrokinetic phenomenon was observed for the first time in 1807 by Reuss , who noticed that the application of a constant electric...
-based genetic analysis system, cost US$300,000 each, but was a major leap beyond its predecessor, the 377, and was fully automated, allowing genetic decoding to run around the clock with little supervision. According to Venter, the machine was so revolutionary that it could decode in a single day the same amount of genetic material that most DNA labs could produce in a year.
The partnership sold hundreds of the 3700 analyzers to Celera, and also to others worldwide. The public consortium also bought one of the Applied Biosytems 3700 sequencers, and had plans to buy 200 more. The machine proved to be so fast that by late March 1999 the consortium announced that it had revised its timeline, and would release by the Spring of 2000 a "first draft sequence" for 80% of the human genome.
PE Corporation
On March 19, 1999 Perkin-Elmer Corporation, as a New York corporation, filed SEC Form S-4Form S-4
Form S-4 is a form filed with the U.S. Securities and Exchange Commission relating to a business combination or exchange offer. This filing contains details relating to share distribution, amounts, terms, and other relating to any merger or exchange offers....
/A, to enter a reincorporation merger with a subsidiary of PE Corporation of Delaware. Shareholders of the New York corporation stock (NYSE:PKN) would receive shares in two new stocks instead.
On April 27, 1999, the shareholders of Perkin-Elmer Corporation approved the reorganization of Perkin-Elmer into a pure-play life science company, resulting in the name change to PE Corporation and the de-listing of the PKN stock. Each share of the Perkin-Elmer New York (PKN) was to be exchanged for one share and for ½ of a share respectively of the two new common share tracking stocks for the two component Life Sciences groups, PE Biosystems Group (NYSE:PEB) and Celera Genomics Group (NYSE:CRA). (PKN now)
On April 28, 1999, the two replacement tracking stocks for the new PE Corporation were issued to shareholders. The Pacific Stock Exchange began trading PE Corporation options for the two new stocks that day. Dr. Michael W. Hunkapiller remained as Senior Vice President of PE Corporation, and as president of PE Biosystems. Dr. Afeyan initiated and oversaw the creation of the tracking stock for Celera Genomics Group. Then later in 1999 Dr. Afeyan left, to co-found Flagship Ventures, an early stage entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
ial venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
firm. Dr. J. Craig Venter remained as Senior Vice President of PE Corporation and also President of Celera Genomics Group. Tony L. White remained as PE Corporation's Chairman, President and Chief Executive Officer.
Other officers who remained in PE Corporation included William B. Sawch, as Senior Vice President, General Counsel and Secretary.
On May 6, 1999,the reorganization was made effective, as the Perkin-Elmer Corporation was merged into a temporarily created subsidiary of PE Corporation, a new Delaware corporation. The recapitalization of the company resulted in issuance of the two new classes of common stock, called PE Corporation-PE Biosystems Group Common Stock and PE Corporation-Celera Genomics Group Common Stock. On that date, trading began in both new stocks on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
, to great excitement.
On May 28, 1999 as part of the recapitalization and reorganization, the company completed the sale of its traditional business unit, the Analytical Instruments Division to EG&G Inc., along with the Perkin-Elmer name, for US$425 million. EG&G was based in Wellesley, Massachusetts
Wellesley, Massachusetts
Wellesley is a town in Norfolk County, Massachusetts, United States. It is part of Greater Boston. The population was 27,982 at the time of the 2010 census.It is best known as the home of Wellesley College and Babson College...
, and made products for diverse industries including automotive, medical, aerospace and photography. On July 14, 1999 that new analytical instruments maker PerkinElmer cut 350 jobs, or 12%, in its cost reduction reorganization.
On June 17, 1999 the Board of PE Corporation announced a two-for-one split of PE Biosystems Group Common Stock.
At year end 1999, after the major divestment that year of the former Analytical Instruments Division, the new PE Corporation assets totalled over US$1.5 billion, split between the two Life Sciences groups. Of that, PE Biosystems Group, with 3,500 employees had net revenues of over US$1.2 billion.
By June 2000, the genomics segment of the technology bubble was peaking. Celera Genomics (CRA) and PE Biosystems (PEB) were among five genetics pioneers leading at that time, along with Incyte Genomics , Human Genome Sciences
Human Genome Sciences
Human Genome Sciences is a biopharmaceutical corporation founded in 1992. It uses the human DNA sequence to develop protein and antibody drugs. As of 2008, it has drugs under development to treat such diseases as hepatitis C, systemic lupus erythmatosis, anthrax disease, cancer, rheumatoid...
, and Millennium Pharmaceuticals
Millennium Pharmaceuticals
Millennium Pharmaceuticals, Inc., The Takeda Oncology Company is a biopharmaceutical company based in Cambridge, Massachusetts. The Company markets Velcade for injection, a cancer product, and has a growing clinical development pipeline of product candidates...
. All five of those stocks by then had exceeded a price above $100 a share in the market, before ultimately crashing back down.
Applera
On November 28, 2000 PE Corporation filed SEC Form 8-KForm 8-K
Form 8-K is a very broad form used to notify investors of any material event that is important to shareholders or the United States Securities and Exchange Commission. This is one of the most common types of forms filed with the SEC...
to report its announcement of the change of its name to Applera Corporation. At the same time, PE Biosystems Group changed its name to Applied Biosystems Group, and changed its ticker symbol from PEB to ABI. Both name changes became effective November 30, 2000. Also that date, the parent corporation web site address changed from http://www.pecorporation.com to http://www.applera.com.
The combined Applera then had 5,000 employees. PE/Applied Biosystems Group's net revenues rose to almost US$1.4 billion. Celera that year made milestone headlines when it announced that it had completed the sequencing and first assembly of the two largest genomes in history, that of the fruit fly
Drosophila melanogaster
Drosophila melanogaster is a species of Diptera, or the order of flies, in the family Drosophilidae. The species is known generally as the common fruit fly or vinegar fly. Starting from Charles W...
, and of the human.
In 2001, the Applied Biosystems division of Applera reached revenues of US$1.6 billion, and developed a new workstation instrument specifically for the new field of proteomics
Proteomics
Proteomics is the large-scale study of proteins, particularly their structures and functions. Proteins are vital parts of living organisms, as they are the main components of the physiological metabolic pathways of cells. The term "proteomics" was first coined in 1997 to make an analogy with...
, which had become Celera's new core business focus, as it shifted away from gene discovery. The instrument analyzed 1,000 protein samples per hour.
In January 2002, J. Craig Venter was pushed out of Celera, when it was decided that the group would make pharmaceuticals instead. Venter lacked experience in pharmaceutical development.
On April 22, 2002, the Celera Genomics Group announced its decision to abandon what had been its core business since its 1998 inception, and to shift the role of marketing data from its genetic database over to its sister company, the Applied Biosystems Group. Celera would instead develop pharmaceutical drugs. Applera CEO Tony L. White had noted earlier that the database business would distract from pharmaceutical development.
Applied Biosystems was a better fit for the database, because Applied already had the huge sales force in place for the marketing of its instruments. Plans were to expand those sales and those of the database into an electronic commerce system.
The database itself, Celera Discovery System (CDS), would remain with Celera, because of shareholder approval complications. Celera would retain responsibility for its maintenance and support to existing customers, and would receive royalties from Applied Biosystems. The database revenues were expected to reach US$100 million for the June fiscal year end, which would be its first profitable year. But it had always faced the problem that its public competitor, the consortium project, provides free data from its own database.
In 2002, Applied Biosystems Group again posted revenues of US$1.6 billion for the year.
In 2004, the long-term Applied Biosystems president, Mike Hunkapiller, retired and Cathy Burzik, who had joined the Group in 2003, replaced him as President of Applied Biosystems Group.