Summary: their nanochip product was approved for sale to a huge
variety of government labs, for use in genetic assays.  The stock
jumped over 30% as a result.  How high do you guys think it'll go?

@@@ Story below: @@@
Nanogen, Inc. (NASDAQ:NGEN), developer of advanced diagnostic
products, announced today that it has obtained a United States
Government Service Administration (GSA) Schedule contract. The
contract, number GS-07F-0283T, applies to the company's NanoChip 400
microarray instrument and reagents.

The contract enables Nanogen to be listed on an approved GSA Schedule
and sell its NanoChip products directly to government agencies such as
the National Institutes of Health (NIH), military hospitals and
Veteran's Administration (VA) hospitals. Nanogen's inclusion as a GSA
Schedule Vendor allows government customers to obtain approved pricing
and license terms from a pre-qualified vendor. Government agencies
typically have separate GSA and non-GSA budgets, and therefore
inclusion as a GSA vendor allows Nanogen broader access to government
customers' budgets.

"Securing a GSA Schedule contract for the NanoChip platform is a
terrific opportunity for Nanogen, because both current and new
customers will be able to expedite future purchases through the GSA
ordering process," said David Ludvigson, Nanogen's president and chief
operating officer. "Increased efficiency, coupled with the opportunity
for immediate implementation, will be the result for customers in the
government sector."

The NanoChip 400 instrument is an automated multiplexing platform that
laboratories use to detect genetic sequences. Tests can be performed
using reagents supplied by Nanogen, or laboratories can develop a
variety of "homebrew" assays. The NanoChip instrument employs
Nanogen's core microarray technology, which utilizes patented
microfluidics and electronic technology to automate sample handling
and detection of results.

Founded in 1949, GSA serves as a centralized procurement and property
management agency for the federal government. GSA manages more than
one-fourth of the government's total procurement dollars and
influences the management of $500 billion in federal assets.

Following this announcement, Nanogen, Inc. (NASDAQ:NGEN), was trading
up over 32% in early trading. The Market Gainer Research Team will
continue to gauge the short and long term affects that this
announcement will have on the company.

Remember that this is an approval to be sold, not a contract to
actually sell anything - more of a regulatory thing than anything
else. They still have to convince the individual labs that they
actually want the products being sold, and doing so could be a
challenge. It is highly likely that there are a number of other
companies with similar products that already have approval.

A decade ago Nanogen was one of very few companies with an SNP
detection system, but now there are a great number of these sorts of
systems, and newer methods as well. Direct sequencing is now good
enough in some cases as well. Microfluidics and chip-based systems are
used everywhere. The products were great in 1993, but it took an
absurdly long time to bring them to market, and they aren't too
exciting now.

Of course, this is still good news, and it is nice to see Nanogen
starting to do things again, after years of doing nothing. Perhaps
they will become relevant again, which would be very nice to see. But
this isn't 2000, and getting a GSA approval isn't going to cause the
stock price to jump tenfold.

I should also comment that I consider the absurd claims of the other
poster here (the whale one) to be quite absurdly sensationalist and
completely flawed. The technology is good, but it isn't going to
change the world. In many cases this sort of diagnostic system is
already being used. It doesn't help *that* much.

Remember that this is an approval to be sold, not a contract to
actually sell anything - more of a regulatory thing than anything
else. They still have to convince the individual labs that they
actually want the products being sold, and doing so could be a
challenge. It is highly likely that there are a number of other
companies with similar products that already have approval.

A decade ago Nanogen was one of very few companies with an SNP
detection system, but now there are a great number of these sorts of
systems, and newer methods as well. Direct sequencing is now good
enough in some cases as well. Microfluidics and chip-based systems are
used everywhere. The products were great in 1993, but it took an
absurdly long time to bring them to market, and they aren't too
exciting now.

Of course, this is still good news, and it is nice to see Nanogen
starting to do things again, after years of doing nothing. Perhaps
they will become relevant again, which would be very nice to see. But
this isn't 2000, and getting a GSA approval isn't going to cause the
stock price to jump tenfold.

I should also comment that I consider the absurd claims of the other
poster here (the whale one) to be quite absurdly sensationalist and
completely flawed. The technology is good, but it isn't going to
change the world. In many cases this sort of diagnostic system is
already being used. It doesn't help *that* much.