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Pharma Tech Outlook | Tuesday, October 23, 2018
Illumina Inc. is mustering a successful enterprise one step at a time. In May the company made an announcement that it had acquired San Diego startup, Edico Genome for $100 million. Edico makes equipment to accelerate the processing of bioinformation. Thus the acquisition of Edico is not just any news but a clear indicator that Illumina is devising the next phase of its meteoric journey. The future of medicine is becoming more personal as more focus is directed upon innovations such as the sensors we wear on our wrists, diet, environment, and genetics. Being a company that offers best of breed machines for DNA sequencing, the acquisition of Edico enables them to introduce gear equipped with processing and software. This, in turn, can help save a significant amount of cost and time, ensuring the dominance of Illumina in the industry.
The very first genome sequencing was carried out 15 years ago at the cost of $7 billion, and it was a complicated procedure. Today the process has become simpler. The capability of Illumina to sequence individual genomes for just $1000 has enabled it to seize 70 percent of the industry’s market share. Corporate managers these days are aiming to cut the price further to a mere $100. With the help of Edico, the company can push the process even more. With the Dragen bioinformation platform and proprietary algorithms, the startup can help Illumina design a system that would be able to cut the sequencing time from a few days to a mere 20 minutes. Reduced sequencing time would in turn help reduce costs. Moreover, this would help establish Illumina as a standard setter, thus making it is easier for researchers to share data. These advancements should ultimately aim at incorporating the applications for clinicians at hospitals.
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Hospitals these days employ a one-size-fits-all strategy. Doctors make a diagnosis based on the patient’s symptoms and provide treatments found to be effective for the majority. Genomics has the potential to enable doctors to follow a different approach by locating the mutation at the cellular level and find a specific treatment to cure the abnormality. It could also allow doctors to calibrate the dosage based on personal genetics and peer-reviewed research.
Currently, Illumina caters to genome research centers, pharmaceutical companies, academic institutions, clinical research organizations, and biotechnology companies. The addition of hospitals would open up a whole new market for Illumina that would expand their business significantly.
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