Buying a lab? Selling a lab? Someone's not being kosher....

First,

Happy DNA Day! I will be teaching the younglings about Bases and Epigenetics. Just like I did on Thursday at Danbury. What are you doing for DNA Day?

What I am doing other than the teaching is pointing out some fishiness in the Sequencing space. Mind you Affy is a public company......

Read carefully here.

"Navigenics said that the move to acquire in-house screening capabilities was driven in large part by a growing interest in the company's genome testing services, through increased online sales to consumers and physicians as well as expanding enrollment in clinical study programs with partners such as Scripps Translational Science Institute and MDVIP."

"Vance Vanier, chief medical officer of Navigenics, said: "Acquiring our own clinical laboratory gives Navigenics the flexibility and capacity to better respond to the growing demand for our genome testing services."

Now, that these guys are so convinced about how great the space is.......let's here the story from a publicly traded company's CEO, who ultimately could go to jail if he "lies"

Quintin Lai - Robert W. Baird & Co., Inc.
And then Kevin, in March we saw an announcement that you were handing over the CLEO Lab stuff to Navigenics. How does that change any revenues that you once had in 2008 that you won’t get in 2009?

Kevin King *CLEO IS A MISTRANSCRIPTION OF CLIA*
"The CLEO Lab revenues weren’t really that significant for us. The big learning that we had here and the big reason for starting the CLEO Lab a couple years back was really to enable our partners to get to a test, right, a lab developed test and then ultimately too a path for FDA clearance. Initially we thought that this could actually be a big recurring revenue stream for us. So, we had lots of partners, 15, 20, 30 partners that we would be working on projects. Often times the projects were fairly small and when the projects were over and they had their test validated the first thing they said to us was they wanted to open their own CLEO Lab.

So, it really wasn’t much of a recurring revenue stream for us, it was more of a job shop, which was fine, because we are enabling our partners to use our consumables and so forth. But, it really wasn’t going to turn out to be the big multi-million dollar business model that I think at one point in time we thought it might be."

The Sherpa Says: It seems to me that someone is not being honest to themselves and the public here and my guess is that it isn't AFFY. Happy DNA Day!