LCS has entered a market varyingly referred to as sequence capture, target enrichment, and sequence enrichment. While the firms playing in this application area cannot agree on a name for it, they all agree that the market has the potential to become, in LCS' words, "very large."
The firm will use the undisclosed amount to optimize the protocols for its genomic-selection application and to start building a sales and marketing force that "will become more visible in the second half of this year," CEO Fred Dom said.
According to unaudited, pro forma data, Panomics would have added $10.7 million to Affy's total revenues for the nine months ended Sept. 30, 2008, and $11 million to the company's top line in fiscal year 2007.
The company claims that compared to other targeted sequence-enrichment methods, its approach leads to more uniform coverage, or less enrichment bias. RainDance said it plans to offer up to 4,000 amplifications in a single tube later this year.
Both companies are offering users of second-generation sequencing systems new tools to select portions of the genome for targeted resequencing but have optimized their products for different sequencing platforms.
Consulting company McKinsey says diagnostics companies will have to combine genomic data analysis, electronic medical records, effective reimbursement strategies, and regulatory compliance in order to win.