Diversa Corp. is a leader in "bioprospecting," looking around the world for unusual organisms that make chemicals of potential value. The company gained nationwide attention in 1997 when it signed an agreement with Yellowstone National Park to look for microscopic "extremophiles" in thermal springs. Extremophiles live in very harsh environments with extremes of temperature, pressure or other properties usually incompatible with life. Diversa's belief is that such organisms live with the assistance of enzymes that can tolerate these conditions, and such enzymes can be used in industrial processes. It is also evaluating its finds for use as potential drugs.

The philosophy is superficially similar to that of Shaman Pharmaceuticals, a South San Francisco biotech company that failed in its quest to develop useful drugs from such sources as the Amazon rainforest. Shaman went through tens of millions of dollars without getting a single drug approved by the Food and Drug Administration. It recently underwent a 1 for 50 reverse stock split and changed its name to Shaman Botanicals, looking to sell herbal remedies over the counter. But analysts say Diversa's strategy shows more business savvy than Shaman's. The company’s primary focus on industrial uses may not grab headlines like new cures for cancer, but industrial enzymes can be put to use faster than drugs, which require FDA approval. Also, marine scientists say most of life's genetic diversity is found in aquatic organisms, especially those in the oceans.

Diversa was founded in 1994 under the clunky name of Recombinant BioCatalysis, but changed that name to Diversa in 1997. It now employs 102. The company’s chief executive officer is Jay M. Short. The company held its initial public offering on Feb. 14, raising $200 million. Diversa shares more than tripled on its first day of trading, rising from the offering price of $24 to $75 by the close of trading that day. On Feb. 22, shares were trading for $88.63, with a market capitalization of $2.9 billion.

— Bradley J. Fikes