Proteome Systems moves to contract work

Platform technology company Proteome Systems is to offer its first contract-fee based operation in a joint initiative with Massachusetts-based Charles River Laboratories (CRL).

The new facility, Charles River Proteomic Services, will offer proteomics services to major drug companies and bitotechs. Describing the venture as a "totally new approach' for the Sydney-based firm, deputy CEO John Martin said the opening of the new Worcester-based facility would be a major step for the company.

"Offering a contract fee service through Charles River is a significant change. Previously all our services have been on a value-based fee basis, but the link to their recognised brand will give us the opportunity to use this new approach," he said.

Proteome has taken a 20 per cent stake in the new company, which expects significant business servicing early-stage testing of animal trials and models.

"We expect clients to be the big drug companies and biotechs -- many have said they see proteomics as being very important to the approval process, as many have found it is very easy to get almost to approval stage and then get knocked back," he said.

The joint venture will use one of the first significant installations of IBM's Regatta Systems bioinformatics equipment, and was: "arguably one of the biggest capacity proteomics contract services in the US," said Martin.

The joint venture came about after CRL instigated a search for a proteomics partner to complement its existing drug discovery services. Martin claimed the clincher for the deal was Proteome Systems' broad and deep technical knowledge -- not the ability to sell simple "box technology".

"We had to fight to get this deal. There were many other big, established companies also identified by CRL and keen for the business. The key issue for CRL was our knowledge, as well as our technology. They knew they wanted more than just a hardware and software package -- they needed capability embedded in the technology. That's what we offered," he said.

Martin noted that one area which held out great promise for the Charles River Proteomic Services operation was toxicity testing.

"Even the big drug companies have failures in the final phases of their trials procedures. The very experienced CRL people and our systems can together give a good handle on drug safety much earlier on in the trials process -- saving a great deal of money," he said.

If the joint facility proves as successful as Proteome Systems hopes it will be, the company has its sights set on similar ventures in Asia and Europe. As yet, Proteome is not looking at similar facilities as cash cows, claimed Martin, but more as platforms to prove the industrial robustness of the company's products.

"There are already other opportunities coming up in Japan and China as a result of this deal. Governments in those areas are happy to spend money in this area so the possibilities are definitely good," he noted.