Affymetrix Ties with Signature Dx - Analyst Blog

California-based genetic product maker Affymetrix Inc (AFFX) has inked an agreement with German molecular diagnostics firm Signature Diagnostics AG (Signature Dx) for improved diagnosis of advanced colorectal cancer (CRC). Under the deal called “Powered by Affymetrix (PbA)", Signature Dx secures a global license to use Affymetrix’s coveted microarray technology to develop and market diagnostic and prognostic tests for this life-threatening disease. 
 
CRC is the second-leading cause (after lung cancer) of all cancer-related deaths in the U.S. Approximately 150,000 people are diagnosed with this condition annually. However, due to the limitations of existing diagnostic methods (such as fecal occult blood test/FOBT and colonoscopy) millions of cases go undetected in the U.S. and five major European nations each year.
 
There is a significant need for improved diagnostic tests that can detect early- stage CRC and serve as a reliable screening tool. New methods, such as the genetic testing of stool/blood samples to screen for CRC are currently underway.  
 
Signature Dx plans to commercialize two diagnostic test products (Detector C and Predictor C) based on Affymetrix’s microarray technology by fourth quarter 2010 that are designed for improving diagnosis and prognosis of CRC.
 
The company recently released positive clinical study results for its Detector C non-invasive diagnostic screening product, demonstrating its effectiveness in early detection of CRC. Detector C leverages the microarray technology to evaluate the expression of hundreds of genes that are active in white blood cells in response to tumor formation and growth. Moreover, Predictor C prognostic tissue test has been clinically proven to be effective in identifying CRC patients with high risk of disease progression.
 
Affymetrix is a leading provider of microrray-based products and services to the global research community. It is one of the two major providers along with Illumina Inc (ILMN)) of microarray technologies, primarily used in the field of genetic research.
 
Microarrays have emerged as an important research tool as they can be used to examine hundreds of thousands of genes simultaneously. Affymetrix has expertise in gene expression monitoring arrays, which are used to identify correlations between genes, determine their biological functions and identify patterns that enable more accurate disease classification.
 
Affymetrix is broadening its customer base through new product introductions and strategic alliances. The company continues to enjoy steady revenue streams from its arrays, accounting for a meaningful portion of its product revenues.