On December 21, genomic-content provider Incyte Genomics (Palo Alto, CA) agreed to acquire privately held Proteome (Beverly, MA) for $77 million in cash and stock. The merger adds annotation and reference data from Proteome's BioKnowledge Library—covering more than 50,000 human, mouse, rat, worm, yeast, and other model organism proteins—to Incyte's genetic information databases. Whereas Proteome's 25 biotech and pharma clients add to Incyte's customer list, estimates put Proteome's 2000 subscription revenues at less than $5 million, and analysts note that Incyte has already heavily penetrated the big pharma market. “While this adds a little more value to their dataset, I wouldn't call it a great acquisition,” says Gruntal & Co. (New York) analyst Darren Mac. “Incyte is trying to diversify its content base, but to create value what it really needs to do is to move downstream into drug discovery and development.” According to Proteome, Incyte will continue to make the BioKnowledge library, which allows researchers to compare genetic data across different species, freely available to Proteome's academic customers.