From GenomeWeb and the pointer to the Nanogen site.
This highlights the slippery line between the diagnostic world and the research world. One has to be careful to stay on one side or on the other, as slipping gets your hand slapped. I would imagine the outcome from this is they will change some wording and back things off, but they probably wish they hadn't got this letter.
If they are headed toward diagnostics, which I think they are, then they will back off a bit, file some paperwork, and get on down that road. Just a blip, but an annoying blip none the less. Probably also done a bit just to serve as a warning shot across the bows of other companies, as this stuff gets noticed pretty quickly.