ABI's bundling strategy

Applied Biosystems Group is best known for providing companies with the hardware and reagents to decode strings of nucleic acids. However, in a market where instrumentation sales have declined, the company is looking to build a service business geared towards helping companies integrate ABI's hardware with analytical software from third parties. ABI is aiming to maintain and create more need for its instruments, including its flagship ABI Prism 3700 DNA analyzer, as well as add revenues through service fees.

Last week, ABI (Foster City, Calif.) and deCode genetics Inc. (DCGN; EASD:DCGN, Reykjavik, Iceland) agreed to integrate DCGN's genotyping software with ABI's laboratory management software and bioanalytical instruments. According to Clifford Baron, director of product marketing for ABI's solutions group, the deal is part of ABI's strategy to cultivate relationships with third parties in order to deliver a complete solution to its customers. ...