The promise of genomics in drug discovery, which was eagerly embraced in the mid-1990s, has not yet been fulfilled. However, the influence of modern biology on drug discovery remains viable. The promise of genomics and biology should be put in context with the two central problems of drug discovery: the search for disease-related targets, and the study of drug-protein interactions and protein-protein interactions. The first tier of the biotechnology industry has now become the most productive segment of the drug industry. It combines a high degree of innovative spirit with solid pharmaceutical professionalism. Some biotechnology firms have succeeded in addressing unmet medical needs in technologically appealing ways. In their totality, these changes will deeply alter the nature and appearance of the drug industry.