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TWST: Will you begin by telling us about the approach that you’ve taken to the science of genomics and to evaluating the investment opportunities associated with the sector?

Dr. Duncan: First of all, I have a scientific background. I have training in pharmacology, a PhD in neuro pharmacology. I understand molecular biology well because of my experiences in the past with that discipline. So we focus on technology and try to understand how companies are differentiating their technology platform from others. But unlike some of the analysts on the Street, we are not simply taken with technologies. We try to emphasize understanding management’s expertise and, most importantly, understanding the business strategy that is being articulated by management. So we look for a broad-based business model that is supported by both management expertise and an enabling technology.

TWST: What is there about the science of genomics that has led to such hope that cures will be found for diseases such as cancer, Alzheimer’s, diabetes and many other unmet needs?

Dr. Duncan: I really think that the answer lies in the possibility for discovering novel drug targets, and by the way, discovering many more targets. Right now, most of the drugs that are available work on an estimated 500 or fewer targets. A drug target might be an enzyme or cell surface receptor, but essentially it’s a protein whose function can be modulated by a drug to create a therapeutic benefit. The contribution of genomics to this process is that genomics information and the new biological tools that are available are facilitating a greater understanding of the linkage between genes and diseases. By understanding new factors that affect diseases, you might be able to come up with a radically increased portfolio of drug targets that can be modulated to make therapy effective.

TWST: Tularik was the fourth stock.

Dr. Duncan: Tularik (Nasdaq:TLRK) is a strong buy company because we think it illustrates very nicely one of the ways that genomics is going to be used, and that is to enable the discoveries of biology around novel targets that can give rise to small molecule development. I think Tularik is one of the leading biotech small molecule developers, and it is a company that’s building a platform around the understanding of the biological process called gene transcription. It turns out that many drugs modulate gene transcription, which means turning on and off genes directly or indirectly. Tularik is working to understand gene transcription processes and apply the lessons learned across disease models to identify drug opportunities. And it can really provide for some leverage on the business model. If you understand that process, for example, in one cancer, you might be able to apply it to another. So these are very biologically attuned people at Tularik, and by the way, they also have four drugs in the clinic right now, and we expect one to two additional drugs to be entered into the clinic by the year-end. So this is genomics at its best. It’s the way I think the new tools of biology and genomics information will be used — in the discovery and development of small molecule drug candidates.