DNA Microchips Have a Bright Future for Drug Discovery and Diagnostics

There have been three revolutions in modern biology: the discovery of DNA, genetic engineering, and the utilization of genes to cure disease, says Frost & Sullivan, a Mountain View, CA, market research firm. 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, 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 market."

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 Corp., 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 Corp., Beckman Instruments, Becton Dickinson, Caliper Technologies, Exelixis Pharmaceuticals, Genome Therapeutics Corp., Hewlett-Packard Co., Human Genome Sciences, MicroFab Technologies, Millennium Pharmaceuticals, PerSeptive Biosystems, Sequana Therapeutics, Third Wave Technologies, and Visible Genetics.

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.

For more information in the United States, contact: Keith Hammond, California, tel: 650-237-4384, fax: 650-903-0915, khammond@frost.com