Monday, August 23, 2010

The Next-Gen Sequencing Pot Keeps Bubbling

Last week was a busy one for the advanced life sciences world. Not only did much-heralded Pacific Biosciences file its initial S-1 for an IPO, but established player Life Technologies (Nasdaq:LIFE) announced the acquisition of up-and-coming Ion Torrent for up to $725 million. As Ferris Bueller famously said, "life moves pretty fast," and there is seldom a dull moment in life sciences these days.   

Lust for Life
Life Technologies announced that it would acquire Ion Torrent for $375 million in cash and stock, as well as up to $350 million in future cash and stock milestones. That may sound like a rich valuation for a company that is mostly just IP and demonstration models, but that would understate the potential for Ion Torrent's technology.

Ion Torrent has developed its PostLight sequencing technology around a rather different idea than most other sequencing companies. This technology measures the flow of hydrogen ions produced when nucleotides are added to a DNA strand. More significantly, it takes place on a semiconductor chip and that offers at least the possibility that ongoing advances in semiconductor design will make this technology even more sensitive and effective in the future. 



To read the complete article, please click on the link below:
http://stocks.investopedia.com/stock-analysis/2010/The-Next-Gen-Sequencing-Pot-Keeps-Bubbling-PACB-LIFE-ILMN-GE-RHHBY0823.aspx

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