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. 


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http://stocks.investopedia.com/stock-analysis/2010/The-Next-Gen-Sequencing-Pot-Keeps-Bubbling-PACB-LIFE-ILMN-GE-RHHBY0823.aspx

Illumina A Bright Spot In Its Industry

Sometimes a theme can be completely valid, and yet most investors make no money from it. Investing in bleeding edge life sciences research is a good case in point. There is no question that researchers are gaining insights every day that have already led to changes in how the medical community approaches disease and how healthcare companies approach research into new drugs.

What is more questionable is whether individual investors have profited from it all. If you invested in Affymetrix (Nasdaq:AFFX), Caliper (Nasdaq:CALP) or Helicos (Nasdaq:HLCS), you might have a very different perspective on the industry. But, if you have invested in Illumina (Nasdaq:ILMN), you have done quite well over the last five years. And looking at the second quarter, it looks like those who have stuck by Illumina thus far still have a good reason to hang on.

For the complete piece:
http://stocks.investopedia.com/stock-analysis/2010/Illumina-Bright-Prospects-But-Not-For-Investors--ILMN-AFFX-CALP-HLCS-LIFE-RHHBY-LMNX0728.aspx

Sequencing Wars - The Third Generation

Forget the white lab coats and the quiet demeanors. In biology labs across the country, and in corporate R&D labs, there is an all-out war going on. Researchers are pushing themselves and their gear in an effort to understand human disease and find new pathways for treatment, while companies are pushing each other on a relentless drive to build better, faster, and cheaper research equipment. (Learn more about the importance of Research and Development, see: Buying Into Corporate Research & Development (R&D).)

We are now on the cusp of a new battle - the sequencing wars to be fought with third-generation sequencing equipment. Third-gen systems promise more accuracy, faster results, better economics, and a new round of sales for major corporations. The combatants will include some of the better-known names in life sciences research, while the victors will almost certainly include all of us, as these technology innovations should ultimately lead directly to better healthcare treatments.   



For the full column, please continue on to: 
http://stocks.investopedia.com/stock-analysis/2010/Sequencing-Wars---The-Third-Generation-ILMN-LIFE-A-CALP-GE0610.aspx

I also would like add that IBM is working on a next-gen platform as well. IBM's idea is to use microtubules that read the charge of the base-pairs in the DNA. IBM thinks they may be able to produce entire genomes in under an hour with this technology. It's very interesting technology, but it's a long way from "interesting in the lab" to break-out commercial success.