Affymetrix Inks Distribution Pact - Analyst Blog
May 21 2012 - 1:27PM
Zacks
Genetic products maker
Affymetrix Inc (AFFX) recently announced that it
has entered into a global distribution agreement with ScreenCell, a
medical devices company, which specializes in isolating rare
circulatory cells. Under the agreement, Affymetrix will be the sole
distributor of ScreenCell’s Circulatory Tumour Cells (“CTC”)
Technology, to be used only for research purposes.
Affymetrix has launched the
QuantiGene ViewRNA CTC Platform, which combines ScreenCell’s unique
isolation devices with Affymetrix’s own QuantiGene ViewRNA in situ
hybridization (“ISH”) assays to identify single RNA transcripts in
single CTC and other rare cells with high precision. The company
believes that this latest addition to the Expression business will
revolutionize cancer treatment in a big way as it will enable quick
and cost-effective translational research.
ScreenCell devices can also be used
with a host of other assays such as microarray assays, ISH assays,
GeneChip Microarray assays and QuantiGenePlex assays.
Privately-owned ScreenCell
specializes in developing non-invasive technology for isolating
rare circulating cells yielding free of any bias CTC population to
be used for cancer monitoring.
Affymetrix is a leading provider of
microarray-based products and services to the global research
community. Along with Illumina Inc. (ILMN), it is
one of the two major providers of microarray technologies,
primarily used in the field of genetic research.
Affymetrix is expanding its
customer base through new product launches and strategic alliances.
Moreover, the company is pursuing a number of strategies (including
expansion into new markets) aimed at expanding its top line.
Affymetrix is shifting its research
and development (R&D) focus from discovery and exploration
markets to the faster-growing validation and routine testing
markets. The company reckons cytogenetics and cancer research as
promising areas for expansion, representing market opportunities of
roughly $200 million and $500 million, respectively.
However, Affymetrix is operating in
an intensely competitive industry and faces risks associated with
lower R&D spending by its customers due to a soft economy and
government actions including budget cuts.
Affymetrix is exposed to a volatile
funding environment. The company has been facing uncertainties
surrounding National Institutes of Health (“NIH”) funding. Decline
in government research grants may substantially affect the
company’s revenues.
We currently have an Underperform
rating on Affymetrix. The stock retains a short-term Zacks #3 Rank
(Hold).
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
ILLUMINA INC (ILMN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Sep 2024 to Oct 2024
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Oct 2023 to Oct 2024