Illumina unveils DRAGEN v4.4 with enhanced accuracy

SAN DIEGO - Illumina Inc. (NASDAQ: ILMN), a global leader in DNA sequencing and array-based technologies with annual revenue of $4.3 billion, announced the release of its latest software, DRAGEN version 4.4. According to InvestingPro analysis, the company currently appears undervalued despite facing recent challenges, with its stock down about 45% year-to-date. The new release boasts a 30% improvement in germline structural variant calling accuracy and introduces user-friendly oncology applications. The software also includes enhanced multiomics pipelines and supports the new AWS F2 instances for faster data processing.

The University Hospital of Tübingen (UHT) in Germany is one of the first institutions to implement DRAGEN v4.4 in a study aimed at assessing the clinical utility of advanced secondary analysis in whole-genome germline testing. This form of testing is critical for identifying inherited genetic mutations that may increase the risk of developing certain diseases, including cancer.

DRAGEN v4.4 is positioned as the most accurate variant calling tool available, as evidenced by a peer-reviewed study published in Nature Biotechnology in October 2024. The study highlighted DRAGEN’s superior performance in genome analysis compared to other variant calling programs.

Rami Mehio, head of Global Software and Informatics at Illumina, emphasized the software’s ability to simplify complex genomic data analysis and make bioinformatics more accessible. He also noted that the preconfigured oncology applications in DRAGEN v4.4 would reduce the effort required for clinical research tests, allowing for faster insights.

The software update includes preconfigured applications for oncology workflows, support for new multiomics assays, and a significant improvement in structural variant calling accuracy. In addition, it offers a 20% increase in single nucleotide variant (SNV) and indel calling accuracy. While the company maintains a strong gross profit margin of 69%, InvestingPro data shows it operates with a moderate debt level and analysts expect a return to profitability this year.

DRAGEN v4.4’s advancements are expected to streamline analysis and interpretation workflows, particularly in the fields of genetic disease, oncology, multiomics, infectious disease, and population genomics. The software integrates with the Illumina Connected Insights platform, enabling efficient and comprehensive discovery and clinical research solutions.

Illumina’s commitment to innovation and customer satisfaction is reflected in its continuous development of bioinformatics pipelines and applications for next-generation sequencing data. The company’s products are widely used in various fields, including life sciences, oncology, reproductive health, and agriculture. For deeper insights into Illumina’s financial health, growth prospects, and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which offers exclusive financial metrics and expert analysis for over 1,400 US stocks. This announcement is based on a press release statement.

In other recent news, Illumina Inc. reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.97, surpassing analysts’ expectations of $0.94. Revenue matched forecasts at $1.04 billion, although this marked a slight year-over-year decline of 1.4%. Despite these results, the company is facing challenges, including a recent ban on importing its sequencers into China and uncertainties regarding U.S. research funding. In response, Illumina has revised its revenue and non-GAAP guidance for 2025 downward, primarily due to the exclusion of most anticipated revenue from China. Analyst firms have reacted to these developments, with Canaccord Genuity cutting its price target for Illumina to $87 while maintaining a Hold rating, and TD Cowen raising its target to $89, also with a Hold rating. Both firms cite the company’s ability to sustain EPS growth amidst a tough macroeconomic environment as a key factor in their assessments. Additionally, Illumina has initiated a $100 million cost reduction program to address these challenges and is focusing on achieving high single-digit revenue growth and a 500 basis point margin expansion by 2027, excluding the Chinese market.

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