Affymetrix's fork in the road

Platform companies with enabling technology face the choice of whether or not to use their own technology for internal drug discovery and development. On the one hand, having both a platform technology and clinical candidates to develop may allow a company to grow a more sustainable business. On the other hand, those internal efforts can detract from the focus on growing the company's tool business.

Affymetrix Inc. has chosen not to become a hybrid toolkit/product company in order to focus on its GeneChip DNA oligonucleotide microarray business. But in last week's deal with Eos Biotechnology Inc., AFFX added another piece to its strategy, providing array technology and scientists to Eos in exchange for equity participation that could allow it to gain a bigger piece of the drug development upside...