Roche, a leader in the diagnostics business, has been selling the test as a kind of ingredient to be used by diagnostic testing laboratories in building their own tests.

Analysts said the agreement with New York University should be regarded as a long-term investment that could provide new leads for Chiron's diagnostics business within a few years.

Almost 95% of sales come from liquid handling, but much a lot of their research and marketing efforts focus on their diagnostics business.

Mr. White said Celera would get a larger share of the future profits of the diagnostics business to offset its current spending.

But Ms. Ordoñez, who now runs Celera's diagnostics business, has little experience in drug development.

Ms. Ordoñez, who now runs Celera's diagnostics business, has little experience in drug development but will now have that task.

This is another reason he has kept acquisitive eyes on Roche, which has a thriving diagnostics business and is a leader in anticancer drugs.

Earnings from Abbott's diagnostics business, which makes testing kits for AIDS, thyroid diseases and hepatitis, were also restrained, reflecting worldwide pressure to keep prices low.

At Chiron, a multinational biotechnology firm that was acquired by Novartis in 1996, he headed the diagnostics business, which brought the latest immunodiagnostics to market.

Eventually, the molecular diagnostics business might have its own publicly traded stock, as do Applied Bio and Celera.