 |
Oct. 31, 2003 – The lab-on-a-chip market has become very crowded in the past year, and from the looks of the players involved, it�s shaping up to be a battle of the Davids and the Goliaths.
 |
In one corner: a cluster of startups that has been pursuing this market for the better part of a decade. These companies � led by firms such as Affymetrix Inc., Caliper Technologies Corp., Cepheid and Nanogen � are also among the few that have gone public.
 |
In the other corner: the big corporate newcomers who have announced their pursuit of this market within the past six months. The potential impact of semiconductor heavyweights such as Infineon Technologies AG, Intel Corp. and STMicroelectronics should not be taken lightly.
Lab-on-a-chip technology began its trek to commercialization in the early 1990s, when there were approximately nine companies pursuing life science applications and two focused on point-of-care diagnostics.
Today, there are 21 companies that are developing lab-on-a-chip devices for use in life science research, 12 that are targeting the point-of-care market and seven focusing on point-of-need applications. That�s not counting the big guys who have now entered the ring.
While a few companies are looking to offer chips that are suitable for all three segments, it still appears to be a case of either/or when it comes to application focus. Point-of-care diagnostics is where the volume is, whereas life science research is where the money is.
The use of labs-on-a-chip for life science research extends into two key areas: drug discovery and genomics. The time and effort needed for discovery and testing of new drugs is tremendously lengthy and costly, as is the basic research necessary for a better understanding of how the human body works.
Labs-on-a-chip can provide scientists with the means to conduct such research with increased speed and precision at a lower cost. Despite the fact that total unit shipments are forecast in the low millions by 2007, it is the ASP (average selling price) of these chips that is so attractive: roughly $150-$200 each.
Point-of-care diagnostics utilizing lab-on-a-chip technologies has revolutionized patient health care. The ability to test urine, blood or saliva to determine a patient�s condition in just a few minutes has radically altered patient diagnosis and monitoring, and is changing the way in which patients are managed.
The technology has proven itself invaluable in the emergency room, as well as during and after surgery and in critical care units. It is now expanding throughout the hospital setting and can also be found as a basic diagnostic tool in more and more doctors� offices. Despite the fact that the ASP of these chips is roughly $7-$8, it is the projected total unit shipments that make this segment so appealing: tens of millions per year by 2007.
Point-of-need testing is viewed as a very promising emerging area. Combining the DNA detection capabilities of life science research chips with the portable, results-in-minutes benefits of point-of-care diagnostics has opened the door to in-the-field testing for virtually any biological organism.
Potential applications range from maintaining food quality and safety (crops in the field, product processing) to environmental monitoring of ground, surface and drinking water, to bioweapons detection. In terms of ASP and unit shipments, point-of-need testing falls squarely in between point-of-care and life science research.
Within the life science research sector, it�s possible the big players may have more leverage as a known global entity. But it�s an open question as to whether that�s enough to guarantee success. Another question lies in the instruments that read the chips. Will the semiconductor companies rely on partners to supply the readers as the startups have, or will they develop the systems themselves? If the big companies do decide to keep it all to themselves, what advantage does that bring to the table? For point-of-care, these companies still may need to partner with medical device manufacturers to gain access to a hospital buying group rather than going it alone.
Perhaps the most important question is this: How will this increased level of competition ultimately benefit the customer? Unfortunately, there are no easy answers at this point, since it will take a number of years to see how this all plays out.