Founded by Applera in 1998 and tasked with sequencing the human genome, Celera Genomics has since expanded its commercial portfolio substantially, diversifying into both drug discovery and diagnostics via the creation, in 2002, of Celera Diagnostics, a joint venture with Applied Biosystems; all three companies operated under the umbrella of parent company Applera. As part of a strategic restructuring, full control of the joint venture was transferred Celera Genomics in January 2006. This move was accompanied by the decision to partner or sell off Celera Genomics' small molecule drug discovery programme, as the company chose instead to focus on further commercialisation of the diagnostics side of the business. This article looks the motivation behind this important decision and discusses the series of deals that Celera Genomics made in June 2006 to realise its strategic shift.