Third Wave Technologies, Inc.
Madison, WI

• 1994-1996
• ATP funding amount:  $2.0M
• Third Wave Technologies, Inc. cost-share amount:  $0.7M

Under the ATP project, two new processes were developed:

1. The Cleavase Fragment Length Polymorphism (CFLP), which generated a distinct bar code for every unique DNA sequence. This would allow genetic mismatches to be detected by comparing a sample to a normal coding pattern
2. A preliminary assay that uses non-polymerase chain reaction-based (non-PCR-based) single nucleotide polymorphism (SNP) detection methods that are in line with those of PCR without requiring the post-amplification tests to separate the genetic material that PCR requires.

Third Wave Technologies has been able to successfully commercialize this innovation. The ATP project formed the backbone for Third Wave’s Invader™ Platform of clinical molecular diagnostics. Currently, Invader™ products are being used routinely in more than 100 clinical laboratories, and this number is growing every day. This product has been called the “gold standard of SNP detection”. In fact, Third Wave Technologies has been so successful, that PE Biosystems, a leading manufacturer of genetic testing tools, sought to buy out Third Wave Technologies for nearly $330 million. In the end, however, both parties preferred to collaborate as independent corporations. The success has not gone unnoticed. In 2000, then governor Tommy Thompson singled it out in his State Address, linking Wisconsin's continued economic success to the “unlimited potential of companies like Third Wave Technologies ”. 1

To promote broad national benefit, ATP encourages the dissemination of knowledge. And the knowledge spillovers for this project have been tremendous:

• The company has published more than 20 papers and has presented more than 30 posters. Third Wave Technologies representatives also made presentations at 12 conferences during 1995 and 1996 to showcase the information learned from the ATP-funded research.
• Third Wave Technologies grew from a company of three researchers in 1994 to a staff of 195 as of December 2003.

Five years after the ATP investment, Third Wave Technologies earned more than $34 million in revenues and conducted a successful initial public offering that raised over $82 million.