Intel has co-led a $100 million investment round that is expected to push commercial development of a start-up's DNA sequencing platform.

The single-molecule, real-time (SMRT) DNA sequencing platform from four-year-old Pacific Bioscience is expected to allow for the first time the observation of natural DNA synthesis by a DNA polymerase as it occurs.

Pacific Bioscience's technology is based on the SMRT chip, which permits observation of individual fluorophores against a dense background of labelled nucleotides by maintaining a high signal-to-noise ratio, and phospholinked nucleotides, which produce a completely natural DNA strand through what the company describes as "fast, accurate, and processive" DNA synthesis.

The Menlo Park, California-based company believes SMRT will lead to a transformation in the field of DNA sequencing that will facilitate sequencing of individual genomes as part of routine medical care. Pacific Bioscience has estimated its next-generation sequencer will be available as early as 2010 and has anticipated that by 2013, its technology will be able to sequence a genome in 15 minutes.

In contrast, the Human Genome Project, funded at many laboratories around the US by the Department of Energy (DOE) and the National Institutes of Health (NIH), took some 13 years to produce only rough drafts for each human chromosome in 2003.

"With the backdrop of a difficult market, we believe that this substantial investment by our current and new investors validates the promise of our SMRT technology to change the field of DNA sequencing and spark a true revolution in medical care," said Hugh Martin, chairman and CEO of Pacific Biosciences, in a statement.

"These funds from a combination of key institutional investors as well as Intel, a world class provider of semiconductor technology, will enable us to surge forward with an aggressive development program and stay on track to commercialise our technology in 2010."

While Intel's latest investments areas include solar module making and mobile broadband, the company began expressing its interest in the biochip vertical in 2004 and at that time inked an agreement to work with Acacia Research's CombiMatrix group on a platform technology to produce customisable active biochips. Then in 2006, Intel General Manager Pat Gelsinger confirmed the company's interest in biochips, discussing Intel's work at the single protein level with Electronic News.

Other industry companies that have shown interest or made investment in genetics research include IBM, Motorola, and Texas Instruments.

The Pacific Biosciences series E investment round was co-led by Intel Capital and Deerfield Capital Management. Other new investors included Morgan Stanley, Redmile Group, T. Rowe Price, and a large financial institution that Pacific Biosciences did not name. All previous investors participated in the financing, including Mohr Davidow Ventures, Kleiner Perkins Caufield and Byers, Alloy Ventures, Maverick Capital, AllianceBernstein, DAG Ventures, and Teachers' Private Capital.

By Suzanne Deffree, Managing Editor, News - Electronic News