Affymetrix Inc. (NASDAQ:AFFX) Q4 2014 Earnings Conference Call - Final Transcript
Feb 04, 2015 • 05:00 pm ET
results by business unit, our genetic analysis business continued to grow nicely in 2014, increasing by about 40% over the prior year. This was driven by the continued strong performance of both our genotyping and clinical portfolios.
Let's take a closer look at each of these product areas beginning with genotyping. In 2014, our genotyping revenue grew by 47% over the prior year, driven by a very successful year of partnering on large Biobank projects and expanding our business into AgBio applications.
Over the last 18 months, we announced the number of Biobank partnerships such as the UK Biobank, the Million Veteran Program and the China Kadoorie Biobank, which have the potential to represent more than 2 million samples in aggregate.
In November, we announced the partnership with Toshiba Healthcare and Tohuku University that will use our Axiom platform to analyze larger repository samples in Japan.
Toshiba Healthcare launched this genotyping service in December and will be conducting population genotyping studies in Japan, primarily by working with universities, hospitals and other research institutes. We are in active discussion of several new Biobank projects and our pipeline of opportunities look strong for 2014 -- 2015, excuse me.
2014 was a great year for the company in the AgBio market. We introduced our 384 format Axiom line, which allowed us to provide more cost effective products and to significantly increase sample throughput for customers.
Our ability to quickly design and deliver custom arrays continues to be an important competitive advantage. In addition, our industry-leading Bioinformatics are another important differentiator in AgBio, with the genome of some species are remarkably complex.
These attributes helped us grow our AgBio business from a very modest level at the start of 2014 to more than 25% of our quarterly genotyping revenue by year end. We believe that this is a very early days for AgBio genetics and this will be an important growth driver for us for years to come.
Now I will move onto our clinical business where we achieved some critical milestones in 2014 that have laid a strong foundation for our future growth. The second largest component of our genetic analysis business is cytogenetics, where our transition to CytoScan Dx is progressing well.
Our overall growth in cytogenetics 28% for the quarter and 22% for the full year.
In addition to receiving 510(k) clearance from the FDA we were also granted CE-IVD marking in Europe during the first half of last year. This has helped us to firmly establish CytoScan Dx as the best-in-class offering for postnatal cytogenetics. The market penetration is still relatively low in Europe and Asia, so looking ahead, geographic expansion is the number one priority in our clinical business.
Another major milestone in 2014 is our partnership with Ariosa in the non-invasive pregnancy testing market. Ariosa has now transitioned their market-leading Harmony test to our array-based platform and we look forward to working with them to support their growing business.
In addition to our success in cytogenetics and NIPT,