deCODE Genetics has emerged from bankruptcy with a streamlined, diagnostics-oriented business model. In the near term, the privately held firm expects to offer its genomics discovery capabilities on a service basis, echoing the original genomics platform specialists of the late 1990s, including deCODE itself, which did largely unsuccessful technology deals focused on using genetic insight to generate therapies. The difference? It is now using genetic information to assess disease risk and better manage patient health, a strategy it thinks will succeed as the field of personalized medicine diagnostics continues to gain traction.

The company's decision to exit diabetes research is not necessarily surprising given the development and commercial challenges in the therapeutic area, but it's not insignificant either.

ArQule's lead candidate, ARQ 531, is a novel BTK inhibitor in Phase II development that could work in patients with B-cell malignancies resistant to existing BTK inhibitors like Imbruvica.