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HP Looking To Hawk More Gear, Services To Life Science Firms; Research Spending Rising Fast; With Compaq on board, company may have edge, but IBM is looming large.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| September 03, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: MURRAY COLEMAN

Investors are still waiting for biotech to take off.

But many big technology firms aren't biding their time. IBM Corp., Sun Microsystems Inc. and others see biotech as a huge market -- even before biotech patents and products get approved.

They're focusing on supplying the information technology and services that drug makers and biologists need to do basic research.

Fresh off its $19 billion merger with Compaq, Hewlett-Packard Co. is joining the party. It offers a wide range of technology that could be vital to biotech research.

"The combination of HP and Compaq technologies puts us into a clear leadership role in this market," said Ty Rabe, HP's director of high-performance technical computing. "We're definitely in a strong position after the merger to grow with this market."

At a time of huge cuts in corporate spending, biotech research and development is still growing fast. The life sciences industry will spend $38 billion on R&D in 2006 vs. $12 billion last year, estimates International Data Corp.

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