Frost & Sullivan: DNA Microchips: Current Exploration of Niche
Markets Will Produce Large Future Dividends
PR Newswire - November 24, 1997 05:00
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MOUNTAIN VIEW, Calif., Nov. 24 /PRNewswire/ -- There have been three
revolutions in modern biology: the discovery of DNA, genetic engineering, and
the utilization of genes to cure disease. DNA microchips are fueling this
third revolution by providing an automated, high-throughput technology which
allows scientists to map out genetic codes found in DNA, creating a
potentially multi-billion dollar market in the biopharmaceutical industry.
A Strategic Assessment of the DNA Microchip Market, strategic research by
Frost & Sullivan (www.frost.com), examines the end-user applications of this
exciting new technology including genomics, clinical diagnostics, and disease
management. Currently, genomics, the understanding of the human genome for
developing therapeutic products to treat disease, is the most financially
successful application for DNA microchips. But with the introduction of the
Affymetrix' GeneChip for HIV genotyping, it is obvious that applications for
clinical diagnostics are not far behind.
"DNA microchips are experiencing growth in genomics, not only because of
the interest fueled by the human genome project, but by its ability to greatly
accelerate drug discovery," said Enal Razvi Ph.D., Frost & Sullivan senior
biotechnology analyst. "However in four to five years, once they receive the
necessary FDA approval, the clinical diagnostics market will explode as
doctors utilize these chips to test for a variety of life-threatening
conditions at a much lesser cost than what's currently available on the
For all its potential, long-term financing has become an issue in this
emerging market as investments do not provide immediate financial rewards.
The most secure way to receive financing has been through acquiring exclusive
intellectual property and developing strategic partnerships. Thus far stock
market valuations have been based more on patents and alliances than on the
revenues companies generate.
A Strategic Assessment of the DNA Microchip Market profiles many of the
current market competitors and those anticipated to make a significant impact
through 2001. Each competitor has been evaluated in terms of company history,
competitive strategy, strengths, limitations, collaborations, as well as
revenues where appropriate.
Selected Participants in this market include Affymetrix, Orchid
Biocomputer, Darwin Molecular Corporation, Sarnoff Corporation, Gene Logic,
GeneTrace Systems, Genometrix, Hyseq, Incyte Pharmaceuticals, Molecular Tool,
Mosaic Technologies, Nanogen, Perkin-Elmer Applied Biosystems Division,
Pharmacia Biotech, Synteni, and Vysis. Related Companies in this market
include Affymax Research Institute, Argonne National Laboratory, Aurora
Biosciences Corporation, Beckman Instruments, Becton Dickinson, Caliper
Technologies, Exelixis Pharmaceuticals, Genome Therapeutics Corp.,
Hewlett-Packard Company, Human Genome Sciences, MicroFab Technologies,
Millennium Pharmaceuticals, PerSeptive Biosystems, Sequana Therapeutics, Third
Wave Technologies, and Visible Genetics.
This medical industry research has integrated the proven Frost & Sullivan
Market Engineering consulting philosophy into the entire research process.
Critical phases of this research included: identification of industry
challenges, market engineering measurements, strategic recommendations,
planning and market monitoring. All of the vital elements of this system help
the market participants navigate successfully through the DNA microchip
Frost & Sullivan is an international marketing consulting company that
monitors the medical industry for market trends, market measurements, and
strategies. The ongoing research is utilized to update a series of research
publications such as #5066-53, U.S. DNA Probe Markets, and to support industry
participants with customized consulting needs. Free executive summaries of all
Frost & Sullivan reports are available to the press.
For more information in the United States, contact:
Or, visit the company's web site: frost.com
SOURCE Frost and Sullivan
/CONTACT: Keith Hammond of Frost & Sullivan, 650-237-4384, or fax,
650-903-0915, or email@example.com/
/Web site: frost.com