Title: Bayesian analysis of RNA sequencing data Abstract: Massive parallel sequencing is quickly replacing microarrays as a technique to quantify genomic features on the level of DNA or mRNA.We focus on the analysis of mRNA sequencing (RNAseq) data, which are counts of pieces of RNA (tags). RNAseq is believed to be less prone to background noise than microarray data, and hence is particularly promising for lowly abundant tags. We present a novel approach to model and analyze these data. RNAseq data is still expensive, so sample sizes are usually small. However, the number of tags measured is often enormous, so shrinkage of variance-related parameters may lead to more stable estimates and inference. Methodology and software to do so are available, using a negative binomial (i.e. Poisson-Gamma), but only for restrictive study designs, e.g. two-group comparisons. Moreover, there is no consensus on what model fits best to RNAseq data, and this may depend on the technology used. Usually, some generalization of the Poisson or Binomial distribution that accounts for overdispersion is applied. We developed a framework that allows for various count models, flexible study designs, random effects and shrinkage across tags. Moreover, it incorporates a Bayesian-type of multiplicity correction. Integrated nested Laplace approximations (INLA) for latent Gaussian models provide the desired model and design flexibility: it covers a large variety of Bayesian additive models and the Laplace approximations avoid computationally intensive MCMC. However, its standard implementation does currently not allow for estimating parameters that depend on all tags, which is typically needed for shrinkage. Here, we discuss methods to apply INLA using Bayesian shrinkage, which amounts to estimating parameters of hyperpriors. A hyperprior may correspond to a prior that is used to model an overdispersion parameter or to a prior on the parameter of interest. In the first case, it should lead to more stable variance estimates, while in the latter case it is used to shrink the posterior towards the null-domain to deal with multiplicity. We illustrate our approach on two data sets. After considering these, we suggest use of the zero-inflated negative binomial as a powerful alternative to the negative binomial, because it leads to a better fit and less bias of the overdispersion parameters for the low count tags.