The Real Cost of Sequencing

Is the cost of sequencing still declining, or has it come to a halt?

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Capital purchase and service

Capital purchase and service contract costs are only one component of the cost of sequencing. What are the trends in data storage and data interpretation?

This is utter and complete

This is utter and complete nonsense.

The reality is that Illumina owns the sequencing space and feels absolutely no need to increase sequence output.

Back in early 2011 they had a slide of how they could generate 1.13 Tb of sequence per run of the HiSeq 2000, and yet they have not made this commerically available. Indeed they've been stalled at 600 Gbs since then.

Unless someone can come up with some competition for them, we will not see any further decreases in sequencing costs.

This is most short-sighted on Illumina's behalf because it is not until we see at least a further 10-fold decrease in sequencing costs that this will begin to take over inboth the research and clinical realms.

David is correct that

David is correct that Illumina owns this market and has been sitting on HiSeq improvements could at least cut the cost in half. But right now they really don't have the motivation to do anything about it (you can see a more detailed reasoning here: http://biotechmarketer.blogspot.com/2013/05/neil-hall-is-responsible-for...)

But I'm not sure I agree that high costs are what is preventing NGS from taking over the clinical market. I think ease of use, proven utility and knowing how to handle all of the data are the key factors.

Market size is the problem.

Market size is the problem. Sequencers are not TVs or toasters and do not have the same price elasticity of demand.

Further lowering the price will not get "made up in volume" until the market is ready to adopt at a rate that makes the price drop worthwhile.

Some may say that simply lowering the price will increase the adoption rate but in these markets it is not true.

To drop the price by an order of magnitude hoping that the market will absorb enough sequencers to improve the profitability of the company would be a good way to go out of business.