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Genetic products company, Affymetrix Inc. (AFFX - Analyst Report), recently entered into a research and service partnership with South Africa-based Centre for Proteomic and Genomic Research (CPGR) organization. The CPGR organization will provide Affymetrix’s GeneTitan Multi-Channel (MC) Instrument along with customizable Axiom Genotyping Arrays to the African research community in order to advance high-throughput genomics research and personalized medicine studies in Africa.

The GeneTitan family of instruments and the proven GeneChip Array Plates are the company’s first hands-free, automated solution for recording gene expression and genome-wide SNP genotyping. The device’s unique features require minimal human intervention, which in turn enhances laboratory accuracy and efficiency.

Affymetrix holds a leading position in population optimized genotyping analysis and management believes that the partnership with CPGR is in line with this strategy. The company is the pioneer in developing a genotyping assays with its content extracted particularly from the African population.

CPGR is a non-profit research organization funded by the Technology Innovation Agency (TIA) to cater to the life science and biotech researchers in South Africa. It was started under the guidance of the Department of Science and Technology to develop the bio-economy of the country.

Earlier, in August 2012, Affymetrix signed a ‘Powered by Affymetrix’ (“PbA”) Program agreement with a Singapore-based molecular diagnostics company, PathGEN Dx Pte. Ltd. Per the deal, PathGEN Dx adopted a contract manufactured GeneChip microarray from Affymetrix and uses its own proprietary PathGEN PathChip kit along with an automated software package to develop an in-vitro diagnostic (“IVD”) test for pathogen detection.

Our Take

Affymetrix is a leading provider of microarray-based products and services to the global research community. Along with Illumina Inc. (ILMN - Analyst Report), it is one of the two major providers of microarray technologies, primarily serving the field of genetic research. Affymetrix holds a leading position in the gene expression products and services market.

Affymetrix is expanding its customer base through new product launches and strategic alliances and has reorganized its business to drive future profitability. Moreover, the company is pursuing a number of strategies (including acquisitions and expansion into new markets) aimed at expanding its top line.

However, Research and Development spending by Affymetrix’s customers have fallen considerably due to a weak macroeconomic environment coupled with stringent government actions including budget cuts.

We are currently ‘Neutral’ on the stock, which carries a short-term Zacks #3 Rank (Hold rating).
 

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