NanoString Technologies, Inc. (Nasdaq:NSTG), a provider of life science tools for translational research and molecular diagnostic products, and Lam Research Corporation (Nasdaq:LRCX), a global supplier of wafer fabrication equipment and services to the semiconductor industry, today announced a strategic collaboration to develop NanoString’s proprietary Hyb & Seq next-generation sequencing platform.
This collaboration brings together NanoString’s proprietary sequencing chemistry and Lam’s expertise in advanced systems engineering to enable nanoscale manufacturing, with the goal of building a clinical sequencer with the simplest workflow in the industry. The objectives of the collaboration are to complete the development of the Hyb & Seq single molecule sequencing chemistry, design and engineer a clinical sequencing instrument, develop clinical assay panels, and secure the necessary regulatory approvals. In addition, the companies intend to explore methods for coupling the sequencing chemistry with advanced semiconductor fabrication processes to optimize the performance of molecular profiling platforms.
Under the terms of the collaboration, Lam will provide up to $50 million of funding intended to cover the costs of development and regulatory approval over a development period expected to last approximately three years, as well as advanced engineering and technical support. Lam will receive a warrant to purchase one million shares of NanoString common stock at $16.75 per share, as well as a royalty on all products developed under the collaboration. NanoString retains all rights to commercialize the resulting Hyb & Seq products, and the parties will share ownership rights in jointly developed intellectual property.
“We are excited to collaborate with Lam Research, in a partnership that brings together leading innovators in our respective fields,” said Brad Gray, NanoString’s President and Chief Executive Officer. “By combining our Hyb & Seq technology with Lam’s advanced engineering expertise, we intend to fully resource the development of the industry’s simplest clinical sequencer, and enable open-ended innovation at the intersection of semiconductors and genomics.”
“Our vision is to create value from natural technology extensions, including nanoscale applications enablement, chemistry, plasma, fluidics, and advanced systems engineering,” stated Martin Anstice, Lam Research’s President and Chief Executive Officer. “We are excited to collaborate with NanoString to advance the development of their novel Hyb & Seq system and chemistry to meet the challenge of increasing our understanding of human genetics, and we envision a number of strategic benefits by aligning our complementary respective strengths. This is a compelling opportunity for the whole to be significantly greater than the sum of its parts; it is an accelerator of enablement and value for both companies.”