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Investing.com - Canaccord Genuity maintained its Buy rating and $3.00 price target on Pacific Biosciences of California (NASDAQ:PACB) following the company’s announcement of new sequencing technology. The stock has shown strong momentum with a 25.2% gain over the past six months, according to InvestingPro data, despite trading at a relatively high Price/Book multiple of 7.77x.
Pacific Biosciences unveiled its SPRQ-Nx sequencing chemistry and consumables for the Revio and Vega platforms before market open on Tuesday. The new chemistry is designed to work with multi-use SMRT cells for the Revio system, enabling a nearly 40% reduction in cost per 20x genome. This cost reduction initiative comes as InvestingPro data shows the company maintaining strong liquidity with a current ratio of 6.92x, indicating sufficient resources to fund its development programs.
The company plans to begin beta testing on Revio in November, with full commercial launch scheduled for 2026. Pacific Biosciences also intends to integrate SPRQ-Nx chemistry and 5hmC detection capabilities for its Vega platform in 2026.
Canaccord Genuity noted that the lower cost profile enabled by the new chemistry and multi-use SMRT cells could prove highly beneficial in population genomics and clinical settings. The firm highlighted that Pacific Biosciences’ multi-use SMRT cells maintain output per run, while competitor Oxford Nanopore’s reusable flow cells experience decreased output after each use.
The investment bank believes the new technology could improve Pacific Biosciences’ competitive position, support margin expansion toward 50%, and potentially help the company reach cash breakeven by the end of 2027. For deeper insights into PACB’s financial health and growth prospects, including 10+ additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, PacBio announced innovations for its Revio and Vega sequencing platforms, which could potentially reduce genome sequencing costs by up to 40%, bringing prices to less than $300 per genome for large-scale operations. These advancements involve new SPRQ-Nx sequencing chemistry and consumables, with beta testing for the Revio system set to begin in November and full commercial availability slated for 2026. Additionally, PacBio has been selected as the primary sequencing platform for the Korean Pangenome Reference Project, a significant national initiative led by the Korea Disease Control and Prevention Agency.
PacBio also expanded its partnership with seqWell to distribute the LongPlex Multiplexing Kit, which addresses sample preparation bottlenecks by enabling simultaneous DNA fragmentation and indexing for multiple samples. The company further announced its entry into the high-throughput carrier screening market with an expanded suite of PureTarget products, designed to analyze genes associated with inherited conditions. In another development, PacBio partnered with EpiCypher to make the CUTANA Hia5 enzyme available for use with Fiber-seq assays, enhancing chromatin analysis capabilities on PacBio HiFi sequencing systems. These recent developments reflect PacBio’s ongoing efforts to advance genomic research and expand its market presence.
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