Spreading the Chips Around

Affymetrix Inc. has long contended that its first-mover advantage in technology development and in the research market would secure for it a leading position in the gene-based microarray (gene chip) business, first in the research market and then, as applications moved downstream, into drug development and, eventually, clinical diagnostic testing. As for the first phase of its plan, it looks like the company was right. Several competitors have left the chip field, and Affymetrix is largely responsible for driving them out.

Affymetrix has been able to do so in part through aggressive pricing, building credibility by providing its GeneChip arrays at...