First I would split DNAP into two companies, one would have DNAWitness and Ancestry (maybe they could put this in CMIH) and the other would have all the medical products they are working on. I would then merge the medical side with a small drug company.
XKEM is sitting out there with problems, but they have a cancer fighting drug paclitaxel and another in the pipeline for sickle cell leukemia. The following link shows some of its promise.
That's an interesting thought. I don't know much about those kinds of mergers. How does it work? By the sound of it, it's not actually a merger in the typical sense but an agreement where two companies share certain assets?