Sequenom, Inc. (NYSE:SQNM)'s flagship product is the MassARRAY genetic analysis system, used to identify and describe the genetic mutations involved in diseases such as Down's Syndrome and cancer. When combined with all of its complementary software, chips, and reagents, the MassARRAY system accounts for all of Sequenom's revenue. The MassARRAY system has been sold globally since 2000 and while revenue growth from the system has been strong in the past three years, it holds only 7% of the genetic analysis market and competes with Illumina (ILMN) , Applera (ABI), and Affymetrix (AFFX).
Most of Sequenom's revenues come from the systems that it sells and most of its costs also arise from the production of these machines. Sequenom and its competitors make most of their profit from selling complementary products to these systems, such as single-use reagents, software, and complementary hardware after customers commit to their genetic analysis system. This makes market share particularly important.(Read more at Wikinvest )