The Emerging Molecular Diagnostics Industry:

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Kellogg School of Management

The Emerging Molecular Diagnostics Industry: Applera’s Path to a Leadership Role June 5, 2003

By John Fadlovich Carl Finamore Jodi Flax Kevin Lynch Rebecca Wildman

Applera Corporation in the Molecular Diagnostics Industry

Table of Contents
1. 2. Introduction................................................................................................................. 1 Industry Overview ...................................................................................................... 1 2.1. In Vitro Diagnostics............................................................................................ 1 2.2. Molecular Diagnostics ........................................................................................ 2 2.3. Competitive landscape ........................................................................................ 3 3. Applera Corporation ................................................................................................... 5 3.1. Organizational Overview .................................................................................... 5 3.1.1. Applied Biosystems (ABI).......................................................................... 5 3.1.2. Celera Genomics......................................................................................... 5 3.1.3. Celera Diagnostics ...................................................................................... 6 3.2. Intellectual Property............................................................................................ 6 4. Commercialization Environment ................................................................................ 7 4.1. Appropriability.................................................................................................... 7 4.2. Complementary Assets ....................................................................................... 7 4.2.1. Strategic Partnerships.................................................................................. 8 4.2.2. Reagents...................................................................................................... 9 4.2.3. Instrumentation ........................................................................................... 9 4.3. Position in the Commercial Environment........................................................... 9 4.4. Value in the Commercialization Environment ................................................. 10 5. Commercialization Strategy...................................................................................... 10 5.1. Standards Strategy ............................................................................................ 10 5.2. Speed to Market and Market Acceptance ......................................................... 12 5.3. Powerful Technology Proposition .................................................................... 12 5.4. Complementary Assets ..................................................................................... 12 6. Conclusions and Outlook for Applera ...................................................................... 13

Applera Corporation in the Molecular Diagnostics Industry

List of Exhibits
Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Exhibit 5 Exhibit 6 In vitro diagnostics market FDA approved molecular diagnostics tests Applied Biosystem’s genetic analyzer platforms Assets contributed through Abbott/Applera relationship Applera’s commercialization environment Flowchart of an automated PCR Analyzer

Applera Corporation in the Molecular Diagnostics Industry

1. Introduction
For decades diagnostic labs have relied upon clinical chemistry and immunoassays to detect disease, but with the mapping of the human genome and advances in instrumentation technology, physicians of the future will have access to molecular diagnostic tools that will revolutionize the way medicine is practiced. Applied Biosystems, a...
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