INCY did a huge 4 year Microarray deal with Novaris today, and the market so far has yawned like they did after the Monsanto deal two months ago. That one was three years for 50,000 microarray plates of 10,000 data points each ie.) 500,000,000 data points. List price is about $1 a data point, but they offer a BIG volume discount (I'll bet!) But, these have got to be well into 8 figure type deals over the years, if not more. This current deal is for 4 years, but they don't specify the number of plates. People just don't understand and appreciate the power of the microarrays that INCY has in hand and the additional ones near completion. The synergy between INCY's databases, software development, DNA bank resources and microarray technologies put them clearly in the lead in genomics, and quite frankly I can't see anyone catching up with them, they are way ahead and have huge intellectual property barriers built up that they will be reaping the benefits of for decades. Microarray companies like AFFX just don't seem to have the DNA resources to compete on the genomic scale profiling systems INCY is moving towards, although there will certainly be niche markets for a variety of systems and approaches. This is awesome stuff and these are huge contracts and the trend is just beginning. Look at the subscription time line for LifeSeq, the rate just keeps increasing. I expect that the Microarray deals will follow the same trend. Of course, since they don't understand the technologies and there is no consumer contact with INCY, the markets will react when these contracts start affecting the bottom line fundamentals, which will happen soon enough....
Rocketman |
