HYSQ analysis_part1
by: investor_2000a
3/28/00 7:09 pm
Msg: 4459 of 4465
This is a respond to previous msgs and to those who have doubts about HYSQ technology. I'm a
researcher working in fields of molecular biology and genetics. I'm new to the world of market
investment and I have less than a month of experience ( I have purchased yesterday 500 shares of
HYSQ for the first time at 50. yes, in the first two weeks I was scared to buy since everything
had been going down. Also this my second msg on the web ever). This site and most of others
are plagued with day traders that move up and down these companies in days like the last few
with out any news and are clueless about the genomic technology. I have to say that most of you
can also say that I'm clueless about market, caps, and money making, but that is not my
intention to argue here. What I would like instead is to post a short version of my opinion on
HYSQ technology especially when compared to other genomic companies such as its close rival
Affymetrix.
Two main reasons for HYSQ's stock rise since late 1999 have been the general interest in biotech
companies and the bringing of Rathmann to the company. However, I do not believe that these
two reasons will make this company winner in several years from now. It is the technology of
hysq and very likely win or at least hugely favorable deal in the patent suit against affx.
DNA CHIP (HyCHIP) and SEQUENCING BY HYBRIDIZATION TECHNOLOGY (SBH): the
advantage of hysq technology is that it can ACCURATELY sequence any piece of DNA of a
certain size. This DNA CHIP utilizing the sequencing by hybridization technology will be the
most widely used technique in the near future for DNA diagnostics and individual genomics.
Every institution and individual will be able to sequence any piece of dna for diagnostics,
forensic medicine, research, security screening and even pure fun. We will be able to take a drop
of blood and put it machine containing dna chip and that will be the size and price of today's
PCR machine (< $3000 now) and you will have the sequence readout of that dna. Why I think
this will beat AFFX's DNA chip? Simply, AFFX chip can only be used to sequence known piece
of previously sequenced dna. Yes, Affx's chip has an advantage in screening known genes while
HyCHIP is the only universal DNA sequencing chip. Thus, I think AFFX's chip is and will be
more limiting in usage while HYSQs chip will be most widely used for DNA sequence readout.
The end of part 1
Part 2:
HUMAN cDNA DATABASE: believe it or not, HYSQ has already cloned and sequenced
almost all human cDNAs and have their sequences stored in the computer database.
Furthermore, each clone is available in expression vector for functional studies. These are not
genomic dna and thus are not the same thing that CRA is doing. While CRA will beat every
one in sequencing almost entire human genome it will have problem of transferring that into a
profit. Some people know what and how CRA will do that. On the other hand, HYSQ has not
sequenced human genome but rather the expressed cDNA in human organs. Thus they have the
database of expressed cDNA clones (complementary DNA made as a copy of mRNA. It lacks
introns but determines the sequence of proteins what matters the most for biology) in which
they know which genes are expressed where. Thus, you can simply eliminate thousands and
thousands of gene when searching for their functional role in for example brain diseases. The
problem that HYSQ is facing now is how to transfer this database and information into cash?
They are doing three things:
a) firstly, developing collaborations with other scientists and groups to examine the role of
genes expressed in the group's favorite organ or tissue. For these see their web site where they
have only currently fully operative collaborations.
b) Secondly, commercial launch of their HyCHIP through GeneSolutions Inc. where you can
search their database.
c) thirdly, deal with a pharmaceutical giant who has a power and resources to take on searching
for the function of these human cDNA clones. Thus it is in HYSQ interest not to release any of
these to public Gene Bank. This is the main way HYSQ is heading now. That all I can say.
HYSQ vs. AFFX patent suit: the force behind HYSQ is neither Gruber nor Rathmann, it is
Radoje Drmanac who has invented or has been essential in developing two most important
holdings in HYSQ portfolio:
A) the concept and application of the hybridization by sequencing technology (patented!). it is
separate from DNA chip technology.
B) the concept and development of DNA chip. the oligonucleotide arrays on a small piece of
glass that uses fluorescence to read the hybridzed spots.
There are three serious candidates to collect the patent rights and money in claming the DNA
chip invention. Ed Southern in UK, Radoje Drmanac and HYSQ, and Steven Fodor and AFFX.
Southern was among the first to suggest making an array of short oligonucleotides. However,
Drmanac was the first to publish the paper on the concept SBH and the first to successfully used
the array of oligonucleotides to sequence unknown DNA by hybridization. Drmanac and his
colleagues have also done the experiment and patent the technology in the early second half of
1980's. Also, he was instrumental in bringing the idea of making all of this DNA work on the
piece of glass called the DNA CHIP. Fodor from AFFX has used these ideas and spanned them
at the end of 1980's and beginning of a990's to make his own modification and DNA chip since
he was experimenting with different biological chips. That is why there is a patent suit going
on. Fodor was much better businessman that Southern or Drmanac, in publicizing AFFX chip
to come where it is now, but the other two especially Drmanac where more innovative (and
patent wise) and that what will give advantage to HYSQ over AFFX in this patent suit.
Regards, investor-2000a |
