Applied Biosystem, Inc. (ABI.DL)

RedDave (60.39) Submitted: 8/07/08 8:17 PM : Start Price: $36.43 ABI.DL Score: -13.52

ABI bought Invitrogen, Ambion and the Agencourt gene sequencer technology, which is now in production as the SOLiD gene sequencer.

There are now 3 high throughput sequence technologies, Illimina(Solexa), Roche(454 life sciences) and ABI (Agencourt). The Roche/454 is clearly positioned in a different niche with its long read length -- perfect for gene discovery. The Illumina and ABI product will now battle for the part of the market where depth of sequencing can overcome lack of width (read length). Illumina has the advantage with a market proven product and a corporate focus on high throughput genomic analysis. ABI is attempting to merge Invitrogen - a consumable driven function with its third-to-run next generation sequencer. This sort of merger is reminiscent of the HP purchase of Compaq who purchased Digital and Tandem - a consolidation play at best and a destruction of shareholder value at worst.

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