In the past 5 years, droplet microfluidics has experienced tremendous growth during which mature methods for high throughput droplet manipulation have been developed. Such methods include controlled droplet generation, fusion, sorting, splitting and storage. A technological bottleneck of current droplet microfluidics is that because droplets are separated, sequential chemical reactions are more difficult to achieve. For example, in order to perform several biochemical reactions using enzymes one needs to deactivate the currently present enzymes before performing the next step. It is also much more difficult to concentrate target molecules, especially since every reaction step adds volume to the droplets.Here we developed a method to extracting and concentrating analytes within droplets in a continuous fashion by introducing functionalized magnetic microparticles into the droplets that can be manipulated by external magnetic fields and concentration is achieved by continuously splitting droplets to separate the part of the droplet that contains microparticles from the part that is devoid of particles.We are presenting progress towards the development of a high throughput (rates up to 3000 cells/sec) microfluidics device to create cRNA libraries of single cells. This is accomplished by encapsulating single cells into picoliter droplets, extracting mRNA from the cell lysate using functionalized magnetic microparticles, and subsequently creating single cell cDNA libraries that are covalently bound to magnetic beads. Our device will outperform current techniques to study single cell gene expression by several orders of magnitude. Our approach can be used for applications in basic research (e.g. stem cell differentiation) and medicine (early cancer diagnostics and cancer treatment monitoring).