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BUSINESS DESCRIPTION
Axon Instruments, Inc designs, manufactures and markets instrumentation and software for cellular neurosciences and biophysical research.
The market for these products is primarily scientific and medical researchers in universities, hospitals and pharmaceutical companies.
The main product lines are: functional genomics; high-throughput screening (HTS); functional
neurosurgery; and cellular neurosciences.
STRATEGY ANALYSIS
Increased research and development expenditure was highlighted as the reason for the company"s fall in net profit for the year to December 2001. Research and development costs increased by 78% over the year
reflecting the company"s development of new products, the entry in to new markets and increased research in existing markets.
Expenses associated with the recent move to larger premises and softer sales in the second
half also contributed to the fall in profit.
Axon"s strategy is to expand its core technologies into broader scientific and pharmaceutical markets. The company is focused on the design and production of laser scanning devises that record the results of genetic analysis using the newly developed "DNA chip".
TheDNA chip is a tool that allows simultaneous and rapid analysis of thousands of genes on a chip the size of apostage stamp. Additional products lines include,
cell-based pharmaceutical screening,microelectrode-guided surgery, and cellular
electrophysiology.
In July 2001, the company entered into a strategicalliance with Zyomyx, Inc, to develop scanning
instrumentation for data acquisition and analysis ofZyomyx protein biochips and related products.
Analysts are forecasting strong growth in the short term.
Combined with a medium term growth rate of 30% anda low beta,

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