Affymetrix, BGI Join Forces - Analyst Blog
January 17 2012 - 9:45AM
Zacks
Genetic products maker
Affymetrix (AFFX) has inked a Memorandum of
Understanding (“MOU”) with leading genomics center “BGI” to
co-develop and commercialize microarrays for genotyping analysis (a
process used to analyze genetic differences between organisms or
cells). The collaboration will aim at developing and marketing a
range of plant, crop, and livestock microarrays in an effort to
broaden the use of molecular tools in agriculture.
The partnership is expected to
benefit the agricultural community globally by offering
cost-effective and high-throughput solutions that leverage
Affymetrix’ expertise in microarray technology and BGI’s
next-generation, high-quality sequencing platforms, bioinformatics
capabilities and sequencing database.
The alliance will offer scientists
a vast range of genomic markers from the “1000 Plant and Animal
Reference Genomes Project”, which BGI launched in 2010 with an aim
to generate reference genomes for 1,000 economically and
scientifically important plant/animal species. The collaboration
will help advance the use of genomic selection to scientists
looking for better outcomes in breeding plants, crops, and
livestock.
Affymetrix holds a leading position
in the gene expression products and services market. 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 pursuing a number of
strategies (including expansion into new markets) aimed at
expanding its top line. The company is shifting its R&D focus
from discovery and exploration markets to the faster-growing
validation and routine testing markets.
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 has been beset by
uncertainties surrounding National Institutes of Health (“NIH”)
funding. Decline in government research grants may substantially
affect its sales. We are currently Neutral on the stock, which is
in agreement with 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 Jun 2024 to Jul 2024
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Jul 2023 to Jul 2024