Call it a case of growth by acquisition.

Neurome Inc. purchased substantially all the assets of Digital Gene Technologies Inc., bringing on board a platform technology to accelerate the pace of target discovery and development. Called TOGA (Total Gene Expression Analysis), the technology's gene expression-based surveys are designed to characterize the role of target molecules implicated in disease areas.

Other assets include gene expression assays, existing datasets and know-how related to vaccine development programs. The La Jolla, Calif.-based company also is acquiring an entire patent estate that includes data and discoveries generated in commercial and academic research programs.

Terms of the deal between the privately held companies were not disclosed.

Neurome, which does contract brain research while simultaneously pursuing its own internal and collaborative investigations, said the acquisition would allow it to expand beyond its current core technologies in quantitative molecular neuropathology. Its portfolio of neuroanatomical mapping and morphometric tools includes products called MiceSlice, NeuroZoom, BrainArchive and BrainPrints. Used collectively, the technologies produce databases that depict and integrate gene expression patterns in a 3-dimensional context of the brain's structures, circuits and cells, and the company deploys the databases to discover and develop gene targets for enhancing brain function and treating brain-based disease.

Neurome's technologies have drawn partners such as Wyeth, of Madison, N.J.; La Jolla Pharmaceutical Co., of San Diego; and Elan Corp. plc, of Dublin, Ireland.

It noted that the newly acquired TOGA technology allows for the measurement of gene expression levels of both known and novel genes, and shortens the time required to identify and evaluate gene expression levels in various disease models. The acquisition also includes assets relating to a new mechanism for oral delivery of vaccines and other large molecules. The company plans to continue developing the vaccine research program, which is the subject of grants from the National Institutes of Health in Bethesda, Md., and expects to begin animal testing early next year.

Neurome raised $9 million in Series A funding at the same time it entered the deal with Elan, an investor in the first-round financing. Digital Gene Technologies, also based in La Jolla, made an investment as well. (See BioWorld Today, Oct. 23, 2000.)

Executives at Neurome did not return calls seeking comment.