DNA Sequencing Equipment and Services Markets, 3rd. Edition

Keywords : Genomics, DNA, applied biosystem, dna sequencing, DNA Sequencing, genetic analyzer, Genome sequencing, nucleotide, sequencing, genetic, microbial genome, pharmacogenomic, thymine, Sequence-Capture, nanopore

This report, DNA Sequencing Equipment and Services Markets, represents the third time Kalorama has detailed the market for DNA sequencing systems, as well as consumables used in sequencing and sequencing services. Much has changed since the last Kalorama edition of this report. More companies are offering sequencing services. The market was moving in a relatively linear manner for about two years in terms of competition, with no ...

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This report, DNA Sequencing Equipment and Services Markets, represents the third time Kalorama has detailed the market for DNA sequencing systems, as well as consumables used in sequencing and sequencing services. Much has changed since the last Kalorama edition of this report. More companies are offering sequencing services. The market was moving in a relatively linear manner for about two years in terms of competition, with no disruptive technologies or business models introduced. After a period of relative stability, the market has seen major developments in 2011 and 2012. The introductions of the Ion Torrent PGM, PacBio RS and MiSeq have changed the situation in the market, with more new technologies expected from Ion Torrent as well as Oxford Nanopore.

DNA sequencing can be defined as any biochemical method for determining the order of the nucleotide bases, adenine, guanine, cytosine, and thymine, (A,G,C,T) in a DNA nucleotide. DNA Sequencing has accelerated research and discovery, which created a brisk market for sequencing systems that perform this work. TXThe growing availability of vast amounts of annotated sequence data permits life science researchers to undertake a much wider range of experiments.As part of the report’s coverage, the following data is provided:

• Current Market Estimate


• Historical Market Data since 2006


• Forecast to 2016


• Review of Major Company Sequencing Products


• The Status of Next Gen Systems


• Clinical Applications vs. Research Applications in Sequencing


• Litigation and Intellectual Property Developments


• Deals in the Industry


• Market Share of Major Players


• Challenges and Strategic Recommendations

It is the beginning of a revolutionary time for the life sciences. Pricing changes, purchases by first-time users. Consortia, initiatives, a Groups have been organizing to sequence hundreds or thousands of individuals, species, tumors and the like in a short period of time – the 1,000 Genomes Project, the 1,001 Arabidopsis Project, and many others, many of which are covered in Chapter 2 – Trends. Longer-term, questions still remain for broad areas that are seen as large opportunities, such as disease prevention and diagnostics.

Genomics Industry

CHAPTER ONE: EXECUTIVE SUMMARY

• Introduction
  
  
  
  • New Systems, Services Create Uncertainty
  
  
  • A Period of Rapid Adoption, But Lower Prices
  
  
  • Further Longer-Term Challenges
  
  
  • Rapid Growth Overall, But Intense Competition
  
  
  • Customers’ Research Models Evolving
  
  
  • Established Next-Generation Systems Seeing Slowdown
  
  
  
  


• Background
  
  
  
  • Scope and Methodology
  
  
  • Applications and Definitions
  
  
  • Types of Samples
  
  
  • DNA Sequencing Strategies
  
  
  
  

CHAPTER TWO: SEQUENCER MARKET TRENDS

• Industry and Technology Trends
  
  
  
  • Market Fragmenting Into Multiple Product Types and Applications
  
  
  • Continual Improvements Expand Sequencer Market
  
  
  • Acquisitions and Collaborations for New Technologies
  
  
  • Patent Infringement, Other Legal Disputes
  
  
  • Slow Path to Potentially Large Clinical Markets
  
  
  • Spread of Targeted Enrichment, Sequence-Capture Products and Services
  
  
  • Synergies Appearing Between Life Science Companies’ Products
  
  
  • Consumer Genomics, Genetic Testing, Pharmacogenetics Still Entering Mainstream
  
  
  
  


• NHGRI Funding, Budget, Periodic Strategic Planning
  
  
  
  • NHGRI Shifts Funds from Centralized Sequencing Centers
  
  
  • NHGRI White Paper #4: The Future of Genome Sequencing
  
  
  
  


• Genome Projects and Consortia
  
  
  
  • The Cancer Genome Atlas (TCGA) Project
  
  
  • National Plant Genome Initiative
  
  
  • NSF/USDA Microbial Genome Sequencing Program
  
  
  
  

CHAPTER THREE: DNA SEQUENCING SYSTEMS AND TECHNOLOGIES

• 454 Life Sciences (Roche)
  
  
  
  • Genome Sequencer FLX, FLX+, Junior
  
  
  • Illumina
    
    
    
    • HiSeq, HiScan SQ, MiSeq, Genome Analyzer IIx
    
    
    • Intelligent Biosystems (Qiagen)/Azco Biotech
    
    
    • LI-COR Biosciences 4300
    
    
    • Life Technologies/Applied Biosystems
    
    
    • ABI Prism 310 Genetic Analyzer
    
    
    • ABI Prism 3100-Avant Genetic Analyzer
      
      
      
      • Applied Biosystems 3100 Genetic Analyzer
      
      
      • Applied Biosystems 3130 Genetic Analyzer
      
      
      • Applied Biosystems 3130xl Genetic Analyzer
      
      
      • Applied Biosystems 3500 Genetic Analyzer
      
      
      • Applied Biosystems 3730 DNA Analyzer
      
      
      • Applied Biosystems 3730xl DNA Analyzer
      
      
      • ABI SOLiD 4, 5500, 5500xl, 5500xl W Genetic Analyzers
      
      
      • Ion Torrent Personal Genome Machine (PGM)
      
      
      
      
    
    
    • Pacific Biosciences
      
      
      
      • PacBio RS
      
      
      
      
    
    
    • Technologies Under Development
      
      
      
      • Introduction
      
      
      • Human Microbiome Project Technology Development Awards
      
      
      
      
    
    
    
    
  
  
  
  

CHAPTER FOUR: SEQUENCING MARKET ANALYSIS

• Revenues Forecast


• Historical Revenues


• Overall Market Forecast


• Sequencing For a Clinical Purpose
  
  
  
  • Roche
  
  
  • ABI
  
  
  • Illumina
  
  
  • Affymetrix
  
  
  • B.C. Cancer Agency
  
  
  • Emory Genetics Lab
  
  
  • Bacterial and Viral Applications for NGS
  
  
  • eGenomics
  
  
  • BGI
  
  
  • Pacific Biosciences
  
  
  • Clinical Sequencing vs. Research Sequencing Markets
  
  
  
  

CHAPTER FIVE: COMPETITIVE ANALYSIS

• Introduction
  
  
  
  • Benchtop and Third-Generation Sequencers Bring Instability
  
  
  • Second-, Third-Generation Battle Still Undefined, Unresolved
  
  
  • Increased Flexibility with Purchasing
  
  
  • ABI Capillary Electrophoresis Holds Onto Large Segment
  
  
  
  


• DNA Sequencer Market Shares
  
  
  
  • Smaller Companies Experiencing Struggles
  
  
  
  


• Features and Strengths of Second-Generation Sequencers
  
  
  
  • 454 Life Sciences GS FLX–Strengths/Advantages
  
  
  • 454 Life Sciences GS FLX–Weaknesses/Disadvantages
  
  
  • 454 Life Sciences GS Junior–Strengths/Advantages
  
  
  • 454 Life Sciences GS Junior–Weaknesses/Disadvantages
  
  
  • Applied Biosystems SOLiD–Strength/Advantages
  
  
  • Applied Biosystems SOLiD–Weaknesses/Disadvantages
  
  
  • Illumina HiSeq/HiScan SQ–Strength/Advantages
  
  
  • Illumina HiSeq/HiScan SQ–Weaknesses/Disadvantages
  
  
  • Illumina MiSeq - Strength/Advantages
  
  
  • Illumina MiSeq-Weaknesses/Disadvantages
  
  
  • Life Technologies PGM-Weaknesses/Disadvantages
  
  
  • Pacific Biosciences PacBio RS-Strength/Advantages
  
  
  • Pacific Biosciences PacBio RS-Weaknesses/Disadvantages
  
  
  
  

CHAPTER SIX: INTELLECTUAL PROPERTY AND LITIGATION

• Developments
  
  
  
  • Helicos’ Patent Infringement Suit Against PacBio, Life Technologies, and Illumina
  
  
  • Intelligent Bio-Systems and Columbia University Sue Illumina for Infringement
  
  
  • Illumina’s Two Lawsuits Against Complete Genomics for Infringement
  
  
  • Illumina Sues Life Technologies Over Ion Torrent Systems
  
  
  • Class Action Shareholder Lawsuit Filed Against Pacific Biosciences
  
  
  • Affymetrix Dismisses Suit Against Pacific Biosciences and Former Employees
  
  
  • Life Technologies Defeats VisiGen Stakeholders After Arbitration
  
  
  • Catalyst Assets Sues Life Technologies for Infringement
  
  
  • Patent Interference Between Life Technologies and Pacific Biosciences
  
  
  • Life Technologies and Illumina Dispute Over Amplification on Solid Surfaces
  
  
  • LadaTech Sues Illumina Over DNA Amplification Patent
  
  
  • Illumina Files ‘841 Patent Infringement Suit Against Affymetrix
  
  
  • Affymetrix and Illumina Settle Case Over ‘243, ‘432, ‘531, ‘365, and ‘716
  
  
  • Applied Biosystems and Illumina Claims and Counter-claims Over Sequencing-by-Ligation Both Unsuccessful
  
  
  • Fluidigm and Applied Biosystems Agree to End Case
  
  
  • Beckman Coulter and Applied Biosystems Settle Outstanding Legal Disputes
  
  
  • Cepheid and Idaho Technology Settle Dispute Over PCR Patents
  
  
  • Enzo Biochem Disputes CalTech Sequencing Patents
  
  
  • Huang v. CalTech
  
  
  • Applied Biosystems and Amersham plc (GE Healthcare) Settle Sequencing Patent Litigation
  
  
  • Early ABI (Life Technologies) Patents
  
  
  
  

CHAPTER SEVEN: DEALS

• List of Deals in the Sequencing Industry

CHAPTER EIGHT: CORPORATE PROFILES

• 454 Life Sciences (Roche)


• Complete Genomics


• Illumina


• Life Technologies


• Pacific Biosciences

CHAPTER NINE: CHALLENGES AND STRATEGIC RECOMMENDATIONS

• Market Challenges
  
  
  
  • Fragmentation of Market Complicates Competition
  
  
  • Lower System Prices and Higher Output Restrain Revenues
  
  
  • Market Slowed by Data Analysis and Interpretation Bottleneck
  
  
  • Clinical Applications Present Range of Requirements and Challenges
  
  
  • Threat of New Entrants Despite Increasing Barrier
  
  
  • Potential for Saturation in High-End Segments
  
  
  • Services Experiencing High Growth, But Eating Into Tools Companies’ Revenues
  
  
  • Pharmacogenomics, Personal and Consumer Genomics Slowed by Regulatory and Medical Dogma
  
  
  • Biases at Multiple Levels Raise Issues of Standards, Quality Metrics
  
  
  
  


• Strategic Recommendations
  
  
  
  • Intense Competition Requires Constant Innovation
  
  
  • Balance Risks by Diversifying
  
  
  • Prepare for Applications Opened by Decreasing Cost
  
  
  • Address Growing International Demand
  
  
  • Create User-Friendliness Through Tailored Software Tools
  
  
  • Increase Value by Combining with Complementary Technology or Content
  
  
  • Explore Demand in Expanding Routine Industry Segments
  
  
  • Establish Early Connections With End-Users
  
  
  • Move Towards Diagnostic Environment Requires Partnering
  
  
  
  

LIST OF EXHIBITS

CHAPTER ONE: EXECUTIVE SUMMARY

• Figure 1-1: DNA Sequencer Revenues, 2001-2011

CHAPTER TWO: SEQUENCER MARKET TRENDS

• Table 2-1: NHGRI Budget by Year Including ARRA Supplement, 2006-2012


• Figure 2-1: NHGRI Budget including ARRA (2006-2012)


• Table 2-2: Est. NHGRI Budget by Mechanism, 2012 ($M)


• Figure 2-2: NHGRI Budget


• Table 2-3: NHGRI Budget by Activity, 2010-2012 ($thou)


• Figure 2-3: NHGRI Budget by Activity, 2012


• Table 2-4: NHGRI Funding, Large-Scale Sequencing Centers ‘07&’12


• Figure 2-4: NHGRI Funding, Large-Scale Sequencing Centers ‘07&’12


• Table 2-5: NHGRI Funding, Centers for Mendelian Genomics, 2012


• Figure 2-5: NHGRI Funding, Centers for Mendelian Genomics, 2012


• Table 2-6: NHGRI Clinical Sequencing Exploratory Research Awards, 2012


• Table 2-7: Fuge Funding Recipients


• Table 2-8: Plant Genome Comparative Sequencing Program (PGCSP) Awards, FY 2011


• Table 2-9: NSF / USDA Microbial Genome Sequencing Program Awards, 2008-2011


• Table 2-10 Other Initiatives and Consortia Using DNA Sequencing, 2012

CHAPTER THREE: DNA SEQUENCING SYSTEMS AND TECHNOLOGIES

• Table 3-1: DNA Sequencer Products/ Technologies, 2012


• Table 3-2: NIH Human Microbiome Project Technology Dev’t Awards, 2010


• Table 3-3: NHGRI $1,000 Genome Grant Awards, 2009


• Table 3-4: NHGRI $1,000 Genome Grant Awards, 2010


• Table 3-5: NHGRI $1,000 Genome Grant Awards, 2011


• Table 3-6: NHGRI Advanced Sequencing Technology Awardees, 2009


• Table 3-7: NHGRI Medical Sequencing Discovery Awards, 2009


• Table 3-8: NHGRI Understanding Genome Function Awards, 2009


• Table 3-9: NHGRI Population Genomics Awards, 2009


• Table 3-10: NHGRI Advanced Sequencing Technology Awardees, 2009


• Table 3-11: Other Initiatives and Consortia Supporting Technology Development, 2012

CHAPTER FOUR: SEQUENCING MARKET ANALYSIS

• Figure 4-1: Cost of Sequencing a Genome


• Table 4-1: Market Forecast by Segment (Systems, Consumables, Services) , 2011-2016


• Table 4-2: Sequencing Market Revenues Growth Rates by Segment, 2011-2016 (Systems, Consumables, Services)


• Table 4-3: Sequencer Equipment Market, 2001-2011 ($M)


• Table 4-4: Growth Rates, Sequencer Equipment Market, 2001-2011 ($M)


• Figure 4-3: Sequencer Equipment Market, 2001-2011 ($M)


• Figure 4-4: ABI Sequencing Revenues, Q3 2001 – Q3 2008


• Figure 4-5: ABI Sequencing Revenues, Focus on Q4 2004 – Q3 2008


• Figure 4-6: DNA Sequencer Market Forecast, 2011-2016:


• Figure 4-7: Breakout of DNA Sequencing Market by Application(Clinical vs. Research) 2011


• Figure 4-8: Breakout of DNA Sequencing Market by Application(Clinical vs. Research) 2016

CHAPTER FIVE: COMPETITIVE ANALYSIS

• Table 5-1: DNA Sequencer Market Shares


• Figure 5-1: DNA Sequencer Market Shares


• Figure 5-2: Pacific Biosciences Quarterly Revenues, 2011-2012 ($M)


• Figure 5-3: Complete Genomics Quarterly Revenues, 2010-2012 ($M)


• Table 5-2 Comparison of Sequencers’ Performance, mid-2012

CHAPTER SIX: INTELLECTUAL PROPERTY AND LITIGATION

• Table 6-1: Patents

CHAPTER SEVEN: DEALS

• Table 7-1: Deals in the Sequencer Market