Illumina Acquires Solexa, Hopes To Make Human Genetic Mapping Faster and Cheaper

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A DNA Chip Maker Acquires Gene-Sequencing Company [New York Times]

Summary: Illumina announced yesterday it would acquire Solexa, a developer of DNA sequencing machines, for $600 million in stock, placing under a single management the main tools now used for genetic studies and the mapping of individual human genomes. Illumina CEO Jay Flatley believes "the combination of Illumina and Solexa will create a powerful life sciences franchise." Solexa has been involved in trying to develop methods to determine the sequence of DNA in an organism quicker and cheaper than even a few years ago in the Human Genome Project. Illumina's hope is that eventually, DNA sequencing might be so cheap that every person would carry around a chip with their own complete genetic blueprint. Solexa's latest product, yet-to-be-released, is a DNA sequencing machine it claims can map the three billion DNA units in a person’s genome for only $100,000 - 1/100th the cost of using older sequencers.
Related links: Forbes. Seeking Alpha commentary: Biotech Holiday Shopping: Solexa, Tanox and KOS Bought Out • Affymetrix, So Misunderstood (AFFX, ILMN) • BusinessWeek Highlights Illumina (ILMN).
Potentially impacted stocks and ETFs: Illumina (ILMN), Solexa (SLXA) • Competitors: Affymetrix (AFFX), Luminex (LMNX), Sequenom (SQNM).

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