Biotech Tracker News - Bringing Microarrays to the Clinic
January 31, 2003 Yesterday, Affymetrix (NASDAQ: AFFX) and Roche (Swiss: ROG) announced a partnership that is an important step in bringing DNA microarrays into the realm of clinical diagnostics. Roche licensed Affymetrix’s “gene chip” technology for 18 years to develop clinical diagnostic tests for diverse indications. Affymetrix will receive $70 million now as well as royalties on product sales.  DNA microarrays are well accepted as having the potential to revolutionize medical research and patient care. DNA microarrays can simultaneously measure the gene expression of thousands of genes in a given sample. Messenger RNA (mRNA) binds specifically to a tiny area on the microarray corresponding to its gene, and the amount of bound mRNA is measured. The resulting patterns of gene expression are a molecular “fingerprint” of the sample.  These fingerprints can be associated with many diseases and conditions, and can be used to more precisely evaluate molecular aspects of disease states compared to standard tests. For example, groundbreaking work has shown that cancers can be classified using a gene expression fingerprint derived from microarray analysis. By more accurately classifying cancers at the molecular level, doctors are able to match medicines to individual patients, and are able to identify aggressive tumors at an earlier stage.  The clinical application of this technology is in its infancy. Current use of microarrays represents the tip of a large iceberg of clinical and commercial opportunity. Translation of DNA microarray analyses from the lab to clinical practice has been slow. Experiments often yield vast amounts of data, but are difficult to interpret in a clinically meaningful way.  Hopefully, the Affymetrix / Roche alliance suggests a new emphasis on developing DNA microarray technology in a way that it will be useful in the clinic. It is not clear if Roche will maintain a testing facility that will process samples, or if it plans to develop an all-in-one machine that could process and amplify samples, load them onto microarrays, and analyze data right in the clinic. We estimate that the market for microarrays in the clinic will exceed $1 billion by 2007. In 2000 and early 2001, Affymetrix was facing competition for microarray manufacturing from large companies like Motorola, Corning, Agilent, and IBM. While Agilent remains committed, Motorola and others have not followed through in this area. We expect that progress by Roche and Affymetrix would re-ignite the interest of these larger companies. However, Roche may be able to advance the diagnostic aspect of the microarray platform enough to maintain an edge over competition. Roche’s largest challenges will be to make microarrays easy to use, and to make the data generated from them easy to interpret.
DISCLAIMER The above information transmitted via BioPortfolio has been provided by the original publishers BiotechTracker ("BT") a financial information, news, and software service focusing on event-driven biotechnology and pharmaceutical research. The Service is provided by DPBT, LLC ("DPBT"). a joint venture formed between BT Investor, Inc. and PCS Research Technology, Inc. It is not guaranteed as to completeness or accuracy by BioPortfolio, the BT publishers, or any person. Such Information is neither an offer to sell nor a solicitation to buy the securities of any company. Opinions expressed are subject to change without notice. The Information and views provided by BT are prepared by BT employees and in no way reflect the views or efforts of BioPortfolio Limited., any of BioPortfolio's employees or officers. BioPortfolio, and BioPortfolio's employees and officers, as well as BT’s employees and officers, in no way accept responsibility for any of the BT content published on www.bioportfolio.com/.  While all reasonable care has been taken to ensure that the Information contained herein is presented in good faith, and is not untrue or misleading at the time of publication, BioPortfolio, and BT make no representation as to its accuracy or completeness and it should not be relied upon as such. The Information is supplied on the condition that the reader or any other person receiving the Information will make his or her own determination as to its suitability for any purpose prior to any use of the Information. From time to time, BioPortfolio and any officers or employees of BioPortfolio, as well as BT, and any officers or employees of BT, may, to the extent permitted by law, have a position or otherwise be interested in any transactions, in any investments (including derivatives) directly or indirectly the subject of this report. Also BioPortfolio and BT may, from time to time solicit business from any company mentioned in this report. This report is provided solely for the information of viewers of BioPortfolio and/or viewers and subscribers of BT and BioPortfolio information services, who are expected to make their own investment decisions without reliance on this report. Neither BioPortfolio nor any officer or employee of BioPortfolio, nor BT, or any officer or employee of BT, accepts any liability whatsoever for any direct, indirect, special or consequential damages or loss arising from any use of this report or their contents. This report may not be reproduced, distributed or published by any recipient for any purpose without the prior express consent of the publishers. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, trademark or copyright of BioPortfolio, BT or any third party.  The value of the investment(s) to which this report relates and their income yield(s) may go up or down. The investment(s) referred to in this report may not be suitable for private investors: if you are in any doubt you should seek advice from your investment advisor. Changes in rates of currency exchange may have an adverse effect on the value, price or income of investments. Statements as to past performance of any investment are not a guide to future performance. The levels and bases of taxation can change, and if you are in doubt you should seek independent professional advice. In some cases it may be difficult for you to sell or realize your investment or to obtain reliable information about its value or the extent of the risks to which you are exposed.  THIS INFORMATION IS PROVIDED "AS IS" AND NO REPRESENTATIONS OR WARRANTIES, EITHER EXPRESS OR IMPLIED OF ACCURACY, MERCHANTIBILITY FITNESS FOR A PARTICULAR PURPOSE OR OF ANY OTHER NATURE ARE MADE WITH RESPECT TO THIS INFORMATION OR TO ANY EXPRESSED VIEWS PRESENTED IN THIS INFORMATION.