Although scientific and clinical interest in molecular diagnostics is at an all-time high, companies are still struggling to find the right business model for the field. Qiagen's recent acquisition of the assets of Molecular Staging, one of the sector's pioneers, reflects the promise and limitations of a field in which competition is fierce, development time is lengthy, and technology is evolving much faster than general market acceptance.

Protometrix's microarray technology enables it to produce, purify, and assay thousands of proteins at once on a solid surface. With this skill set, the company believes it can become the first firm able to offer drug developers the ability to scan the entire human proteome in a high-throughput setting.

Third Wave Technologies wants its Invader technology to be as ubiquitous as PCR. Since a deal with potential buyer Applera fell through two years ago, the company has begun several high-profile collaborations, including one with the Japanese SNP initiative, which now accounts for 50% of revenues. Its efforts appear to be paying off, but the company is fighting an uphill battle in an intensely competitive field.

Roche Diagnostics is the best performing asset at Roche. As the troubled Swiss pharma company suffers through its worst pipeline drought in a decade, Roche Diagnostics is delivering a stellar performance. It is strong across all business segments, from laboratory systems to diabetes to molecular testing. Its challenge: to pull far enough ahead in its traditional businesses to maintain a comfortable lead. Its bigger hurdle, however, is to position itself as a leader in adoption of new genomic and proteomic diagnostic technologies, which is where the industry's future growth lies.