Holding All The Chips

Seeking new ground

Hyseq Inc. has joined the growing list of companies reconfiguring their businesses around drug development, as it placed its original array business into a subsidiary last week in the wake of its settlement of chip technology litigation with Affymetrix Inc.

The question for HYSQ now is how it will effectively compete in the expensive game of creating drugs with only $16.5 million in the bank at Sept. 30 and a $20 million line of credit. Part of the answer may come from the way the company leverages an undisclosed amount of cash and other assets resulting from the settlement of the 1997 litigation with AFFX.