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Affymetrix Licenses Technology to Japan s Takara Shuzo

NEW YORK, Sept. 11 -- Affymetrix (Nasdaq: AFFX) of Santa Clara, Calif., said Monday it had licensed technology for low and medium density DNA arrays to reagent-provider Takara Shuzo of Kyoto, Japan.

Under the terms of the license, Takara has been granted a non-exclusive, worldwide, royalty-bearing license allowing them to manufacture, use and sell low and medium density pre-spotted arrays of up to 5,000 spots per slide.

Affymetrix has yet to license its high-density chip technology, preferring to keep that market for itself.

With the license in hand Takara now plans to launch their IntelliGene DNA chips, based on Affymetrix’s technology later this month.

The license to Takara grants rights for the research field for gene expression with mechanically-spotted arrays.

In exchange for the license, Affymetrix will receive undisclosed upfront fees and ongoing royalty payments on products sold by Takara. Takara will continue to distribute and promote Affymetrix' arrayers and scanners in Japan, Korea, Taiwan and the People's Republic of China.

“This license from Affymetrix is essential for us to expand our product offerings to become one of the first Japanese companies to commercialize DNA spotted arrays for pharmaceutical industry applications,” said Ikunoshin Kato, president of Takara Shuzo’s biomedical group in a statement.

Affymetrix was down 2 ¾, or 3.7 percent, at 71 7/8 in afternoon trading.

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