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SAN DIEGO - Illumina, Inc. (NASDAQ:ILMN), a profitable biotech company with a market capitalization of $14.6 billion and healthy gross margins of 68%, announced Wednesday the formation of BioInsight, a new business unit focused on developing data assets, software, and artificial intelligence solutions to support life science research and pharmaceutical development. According to InvestingPro analysis, the company currently appears undervalued despite maintaining strong financial metrics.
The new division aims to meet growing industry demand for analyzing large-scale multiomic data sets, according to the company’s press release statement. BioInsight will be led by Rami Mehio, who previously headed Illumina’s Global Software & Informatics team and now joins the company’s executive leadership.
"Working together with our customers, we are going beyond sequencing and breaking the barrier between omics data generation and transformative insights," said Jacob Thaysen, chief executive officer of Illumina.
The unit will focus on four key areas: enabling large-scale genetic and biological data generation projects, developing software solutions for multimodal data analysis, providing secure data access platforms, and creating AI tools through strategic partnerships.
BioInsight will support data generation through national research initiatives, corporate partnerships, and federated data networks. The division plans to expand beyond traditional genomics to include various biological data types, including perturb-seq.
Illumina indicated the new business reflects its strategy to leverage the convergence of reduced sequencing costs, which has enabled unprecedented multiomic data generation, with advancements in AI capabilities.
The company stated the initiative will help researchers identify drug targets, understand biological pathways, discover disease mechanisms, and accelerate therapeutic development by providing tools to analyze complex multimodal datasets. While Illumina’s stock has seen a challenging year with a -39% YTD return, InvestingPro subscribers can access detailed analysis and additional insights through the comprehensive Pro Research Report, available exclusively with a subscription.
In other recent news, Illumina Inc. reported its second-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $1.19, compared to the forecasted $1.01, marking a 17.8% surprise. The company’s revenue for the quarter was $1.06 billion, slightly surpassing the anticipated $1.05 billion. In addition to its financial performance, Illumina announced collaborations with several global pharmaceutical companies to develop companion diagnostics for KRAS biomarkers using its TruSight Oncology Comprehensive genomic profiling test. These partnerships aim to expand tumor-agnostic claims for KRAS alterations, which are significant in various cancer types. Meanwhile, BioStem Technologies appointed Brandon Poe as its new Chief Financial Officer, succeeding Michael Fortunato, who transitioned to Chief Accounting Officer. Poe brings extensive experience from his previous roles, including his tenure at Illumina, where he served as Vice President of Finance. These developments reflect ongoing strategic moves within both companies.
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