Genomics and combinatorial chemistry are two methods that are revolutionizing drug discovery efforts. Analysis of gene sequences allows identification of novel proteins which are potential therapeutic targets. Recent advances relate to the rate of gene sequencing and data handling resulting from the enormous flow of new gene sequences. Cathepsin K, a cysteine protease involved in bone resorption, was recently identified from a bone cell cDNA library as a potential target for osteoporosis therapy. New sources of chemical agents will rely on advances in high throughput chemical synthesis and structure-based design.