My research group is using group theory to model the evolution of bacterial genome. Here are a couple of relevant papers:
"An algebraic view of bacterial genome evolution" AR Francis. Published in Journal of mathematical biology
"Group-theoretic models of the inversion process in bacterial genomes" A Egri-Nagy, V Gebhardt, MM Tanaka, AR Francis Published in Journal of mathematical biology
In addition, this is a kind of survey paper (not written by us).
Rietman, Edward A., Robert L. Karp, and Jack A. Tuszynski. "Review and application of group theory to molecular systems biology." Theor Biol Med Modell 8.21 (2011).