Hybritech Joins in Buying Stake in Gen-Probe

A group of investors that includes San Diego-based Hybritech has made a $7-million equity investment in Gen-Probe, a San Diego-based company that has been developing a series of speedy and effective DNA tests to determine the presence of infectious disease-causing microorganisms.

In addition to Hybritech, a biotechnology firm that recently announced its intention to be acquired by Eli Lilly & Co., an Indianapolis-based drug company, the investors include the C.W. Group, Fairfield Venture Partners, the Mayfield Fund, Kleiner Perkins, Caufield & Byers and Grace Ventures.

Gen-Probe, which has received Food and Drug Administration approval to market a DNA test that determines the presence of the bacterium which causes Legionnaires’ Disease, plans to introduce DNA tests for pneumonia and tuberculosis.

Gen-Probe was founded in 1984 by David E. Kohner, Thomas H. Adams and Howard C. Birndorf.

DNA industry analysts have predicted that the infectious disease product market will grow to $1 billion by 1990, from the current $300 million. DNA test products are expected to grow to $325 from $18 million.