Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Amersham forms gene analysis joint venture

Gail Counsell,Business Correspondent
Thursday 07 April 1994 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Amersham International, Hitachi and Molecular Dynamics have formed an alliance to exploit the growing demand for instruments with which to 'sequence' or analyse genes.

All three companies already have products or expertise in different areas of the market.

Molecular Dynamics, a Californian company that is a leading developer of life sciences instruments, will provide sales, marketing and support. Hitachi will contribute a sequencing machine - it has recently developed a smaller, cheaper machine. Amersham has both a new product, which robotically prepares genetic material for sequencing, and 'reagent kits' necessary for the sequencing process.

Under the deal Amersham and Molecular Dynamics will form a joint venture, which will split profits from the exclusive sale of Hitachi's Vistra DNA Sequencer, Amersham's Vistra Labstation, and the reagent kits.

In the US and Europe Molecular Dynamics will be responsible for marketing and servicing the products; in Japan the responsibility will be Hitachi's.

Separately, Amersham has acquired a three-year option to buy just over 1 million shares - 10 per cent - of Molecular Dynamics at up to dollars 13.20 ( pounds 9.10) a share.

Trevor Nicholls, Amersham's group marketing manager, said the Hitachi Sequencer would sell for almost half the pounds 80,000 that competing products cost, probably expanding the market.

At present, most academic institutions such as universities tended to buy a single machine and research teams had to book time on it, he said. In future the hope would be that each research team would be able to afford its own sequencer.

Amersham estimates the market for sequencers and reagent kits is worth about dollars 180m ( pounds 120m) a year. In addition, it expects substantial sales of its new Labstation processor, which will cost about pounds 50,000.

View from City Road, page 30

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in