Does Access to Patent Information Help Technological Acquisitions?

Technology acquirers face significant information asymmetry when identifying appropriate acquisition targets. Employing plausibly exogenous variation in technological information gathering costs caused by staggered openings of patent libraries, we find that firms become more active in technological acquisitions following local patent library openings. In addition, acquirers prefer targets that are geographically close or are similar in technological space to a lesser extent, technology M&A completion rates increase, acquirers’ abnormal announcement returns are higher, and long-term stock returns of combined firms are better. Acquirers’ access to patent libraries also leads to greater post-merger innovation output through fostering more collaboration between acquirers’ and targets’ inventors. Overall, our study sheds new light on the importance of information gathering costs in corporate takeovers and the search for human capital synergies

Crystal structure of a thermostable Bacillus DNA polymerase l large fragment at 2.1 Å resolution

AbstractBackground: The study of DNA polymerases in the Pol l family is central to the understanding of DNA replication and repair. DNA polymerases are used in many molecular biology techniques, including PCR, which require a thermostable polymerase. In order to learn about Pol l function and the basis of thermostability, we undertook structural studies of a new thermostable DNA polymerase.Results: A DNA polymerase large, Klenow-like, fragment from a recently identified thermostable strain of Bacillus stearothermophilus (BF) was cloned, sequenced, overexpressed and characterized. Its crystal structure was determined to 2.1 Å resolution by the method of multiple isomorphous replacement.Conclusions: This structure represents the highest resolution view of a Pol l enzyme obtained to date. Comparison of the three Pol l structures reveals no compelling evidence for many of the specific interactions that have been proposed to induce thermostability, but suggests that thermostability arises from innumerable small changes distributed throughout the protein structure. The polymerase domain is highly conserved in all three proteins. The N-terminal domains are highly divergent in sequence, but retain a common fold. When present, the 3′-5′ proofreading exonuclease activity is associated with this domain. Its absence is associated with changes in catalytic residues that coordinate the divalent ions required for activity and in loops connecting homologous secondary structural elements. In BF, these changes result in a blockage of the DNA-binding cleft

Anti-phospholipid human monoclonal antibodies inhibit CCR5-tropic HIV-1 and induce β-chemokines

Traditional antibody-mediated neutralization of HIV-1 infection is thought to result from the binding of antibodies to virions, thus preventing virus entry. However, antibodies that broadly neutralize HIV-1 are rare and are not induced by current vaccines. We report that four human anti-phospholipid monoclonal antibodies (mAbs) (PGN632, P1, IS4, and CL1) inhibit HIV-1 CCR5-tropic (R5) primary isolate infection of peripheral blood mononuclear cells (PBMCs) with 80% inhibitory concentrations of <0.02 to ∼10 µg/ml. Anti-phospholipid mAbs inhibited PBMC HIV-1 infection in vitro by mechanisms involving binding to monocytes and triggering the release of MIP-1α and MIP-1β. The release of these β-chemokines explains both the specificity for R5 HIV-1 and the activity of these mAbs in PBMC cultures containing both primary lymphocytes and monocytes

Banks’ Interventions and Firms’ Innovation: Evidence from Debt Covenant Violations

We examine the effect of banks’ interventions on corporate innovation and firms’ value via the lens of debt covenant violations. Banks’ interventions have a significantly negative effect on the quantity of innovations but no significant effect on their quality. The reduction in quantity is concentrated in innovations that are unrelated to the violating firm’s core business, which leads to a more-focused scope of investment in innovation and ultimately an increase in the firm’s value. Human capital redeployment appears to be a plausible underlying mechanism through which banks’ interventions refocus the scope of innovation and enhance a firm’s value. Our paper sheds new light on the real effect of bank financing