Todd asked:
"(1) Does the rapidly increasing capability of gene-chips to analyse ever-increasing fractions of the human genome pose a credible threat to the READS franchise? If so, how does GLGC intend to respond to the potential decrease in revenue derived from agreements for target discovery?"
One of the main advantages of READS(TM) is to identify novel genes. As the number of novel human genes decreases, this benefit will decline. However, READS is also useful for analyzing the genomes of nonhuman animals and plants. There will not be chips for these other species for years to come.
We do, however, see the technology changing, and that's why we are using Affymetrix GeneChips(R), as well as READS, in our drug discovery efforts, developing our own Flow-thru Chips(TM), and developing and marketing our GeneExpress(TM) databases.
"(2) Is the GeneExpress market viewed as one with sustainable growth, or is there a threat that growth will slow appreciably as the number of subscribers increases? (perhaps a hundred or so potential customers??)"
We plan to "version" the product. That is, early subscribers are likely to be pharma companies who will pay large fees for total, immediate access. Subsequent subcribers may be biotech companies and government and university researchers who will pay smaller fees for limited and/or delayed access. In this way, be believe we can sustain growth beyond the first 100 or so customers.
This message contains forward-looking statements about the utility and marketing of READS and GeneExpress. Such statements reflect management's current view of future events. Actual results may differ materially from these projections because of a number of factors, including risks related to demand for gene expression databases, competition, and the company's ability to process adequate numbers of tissue samples and develop effective database management and analysis software. These risk factors and others are more fully described in the company's Annual Report on Form 10-K for the year ended December 31, 1998, and other documents filed with the Securities and Exchange Commission.
Steve Push
Vice President, Corporate Communications
Gene Logic Inc.
Note: I participate occasionally on this message board as an official company spokesperson. Because of time constraints, however, I cannot respond to all questions. My failure to comment on or respond to someone else's message implies neither agreement nor disagreement with the information in that message. Past messages that I have posted may now contain out-of-date information. To be certain that you have the latest information about Gene Logic, please read recent press releases, SEC filings, and other documents available on our Web site (http://www.genelogic.com). |
