Company Name: Nanogen Inc.
Stock Exchange: Nasdaq
Stock Symbol: NGEN

Nanogen Inc. is a developer of advance in vitro diagnostic products.

Looking at the chart below Nanogen Inc. has taken a nose dive since 2000 and I will be explaining why Nanogen Inc. experienced a unexpected price fluctuation.

By studing the price history of Nanogen Inc. (between Nov - Dec 10) important information can be concluded by their performance.

Price History: Nov 1 - Dec 10, 2004
Last Trade: December 10, 2004 at $6.16
Date
Close
High
Low
Volume
Dec 15
N/A
N/A
N/A
N/A
Dec 14
$7.27
$8.00
$7.11
9,380,800
Dec 13
7.86
7.89
6.25
12,259,300
Dec 10
6.16
6.29
6.05
1,008,400
Dec 09
6.13
6.17
5.88
1,162,900
Dec 08
6.18
6.35
5.70
2,437,400
Dec 07
6.09
6.65
5.93
2,983,500
Dec 06
6.37
6.79
6.20
4,757,200
Dec 03
5.99
7.12
5.74
9,175,500
Dec 02
6.21
6.59
5.20
11,040,700
Dec 01
5.00
5.27
4.44
6,033,600
Nov 30
4.49
4.78
4.34
3,012,600
Nov 29(1)
4.83
4.96
3.91
5,935,200
Nov 26
3.95
4.03
3.92
244,400
Nov 25
3.92
3.92
3.92
0
Nov 24
3.92
4.10
3.90
748,200
Nov 23
3.99
4.20
3.95
1,705,600
Nov 22
3.82
3.94
3.78
524,300
Nov 19
3.87
3.94
3.86
461,700
Nov 18
3.87
3.98
3.87
390,900
Nov 17
3.93
4.10
3.92
463,400
Nov 16
3.93
4.14
3.93
516,900
Nov 15
4.10
4.25
4.06
878,300
Nov 12
4.16
4.25
4.02
999,100
Nov 11
4.01
4.11
3.91
824,700
Nov 10
3.84
4.01
3.81
355,800
Nov 9
3.96
4.05
3.85
423,900
Nov 8
3.95
4.12
3.85
557,000
Nov 5
3.90
3.92
3.83
400,100
Nov 4
3.82
3.95
3.80
717,400
Nov 3
4.80
4.18
4.00
562,700
Nov 2
4.00
4.25
3.87
1,380,100
Nov 1
3.89
4.10
3.83
357,100

The increase in price ($0.68) and volume (5,690,800) is most likely due to the fact that Nanophase Inc. received a European patent for their method of diagnosing and distinguishing a stroke. The other known reason is the merger between Nanogen inc. and Epoch Biosciences Inc. which was publicly announced in September 7, 2004.

Details on the merger:

Information about Epoch Biosciences Inc. - is a provider of proprietary products that accelerate genomic analysis.

Background infromation about the merger:
The merger itself is an all-stock transaction. Nanogen agreed to an offer price of $2.00/Epoch share. The merger is expected to close by December 15, 2004.The companies serve many of the same customers and both market in vitro diagnostic products that provide physicians information to predict, diagnose, and treat disease.

The merger with Epoch will broaden Nanogen's product offering's and further leverage their existing sales and marketing infastructure. Howard Brindorf (Nanogen Chairman and CEO) said, "by adding Epoch's high-quality products, we expect to increase our productivity, expand customer reach and significantly grow revenue." Howard went on to add "generate a positive cash flow contribution," which is important to consider because positive cash flow is the most important factor to operating and surviving a hostile market.

William G. Gerber, M.D., Epoch Biosciences CEO said, " Merging Epoch into Nanogen creates a diversified line of research and diagnostic products that should see faster adoption given Nanogen's established infrastructure and capital resources." Key term, "faster adoption" may mean decreasing the time-to-market, which will increase competitive advantage.

Benefits for Nanogen:

  1. Elimination of a competitor (Epoch Biosciences Inc.)
  2. Increase Nanogen's market share
  3. Increase Customer base (supply)
  4. Expansion of research capabilities
  5. Increase manufacturing capabilities
  6. Addition of administration, marketing, and sales into Nanogen's existing operations

Note: Everything discussed so far are future looking statements.