Glaxo thinks ROI

Glaxo's planned purchase of $50 million in Affymetrix preferred stock is a pure investment play, according to both sides of the deal (B12). Glaxo already owns 33 percent of AFFX through its 1995 acquisition of AFFX's parent, Affymax, for $533 million. If the preferred converts, Glaxo's stake would increase to 38 percent.

Glaxo already has access to AFFX's GeneChip technology through an existing partnership. But taking such a large stake in any company raises the question of whether an acquisition is in the future - a possibility that both companies denied...