SMART MATERIALS AND DIAGNOSTICS have a transformative opportunity to change diagnostics as we know them. Already George Church at Harvard has come up with a revolutionary flashdrive DNA sequencer using nano-materials. During the coming five years, the field of biosensors and diagnostics is going to transform from big costly instruments to small Point of Care devices with a large drop in costs. Two considerations: one is the regulatory path and how that limits upgrade flexibility. The second is the addressable markets and the degree of test interpretation sophistication.