Memo

Draft memo:

In the era when longevity is thought to be influenced only by environment and lifestyle, Centagenetix found that there is a genetic linkage on chromosome 4 to longevity. In addition to its effort in finding which gene on chromosome 4 that plays significant role in longevity, Centagenetix wants to develop a Single Nucleotide Polymorphisms (SNPs) database- compiling every single nucleotide variance in people who live longer (centenarian). Even though the idea offered by Centagenetix is novel and has lucrative potential in aging-related field, I would strongly suggest Foley (associate of the MPM venture capital) not to invest in Centagenetix based on four reasons.

First, Centagenetix does not neither own 400 samples that it used to draw a finding in chromosome 4 and it does not nor own the technology needed to create a SNPs database. Centagenetix plans to subcontract it to Qiagen for the first 6 months while it is still searching and preparing the best technology for SNPs analysis to do work in-house (pg11). Beth Israel Deaconess Medical Center (BIDMC), the hospital where Perls (one of the founder of Centagenetix) recruited and studied the DNA samples of centenarian, own the samples. MPM has to buy an exclusive license of the patent application on chromosome 4 and current and future centenarian samples.

However, BIDMC had sold cell lines from 400 centenarian for $400,000 to Whitehead Institute. Out of 400 samples, 110 cell lines had been given to Whitehead and BIDMC had received $140,000 payment. BIDMC also gave Whitehead an exclusive right to commercialize any discoveries made using the cell lines. Whitehead Institute has the capability of creating SNPs database through its large public genomic laboratory and high throughput analytical equipment. Had the Whitehead Institute wanted to develop a SNPs database from centenarian samples, Centagenetix would lose half of its existential reason.

Centagenetix feel that, at least 1000 samples are needed to...