PacBio clears allegations after special investigation

Published 12/05/2025, 16:06
PacBio clears allegations after special investigation

MENLO PARK, Calif. - Pacific Biosciences of California, Inc. (NASDAQ: PACB), known as PacBio, announced Monday that an independent investigation led by its Special Committee found no evidence of improper employment practices or material inaccuracies in the company’s cybersecurity disclosures. The inquiry was initiated in response to claims made by a lawyer on behalf of an employee affected by the firm’s recent layoffs. The company, currently valued at $340.55 million, maintains strong liquidity with a current ratio of 10.29, indicating its ability to meet short-term obligations despite recent challenges.

The investigation specifically addressed allegations concerning certain employment practices and cybersecurity issues, but it did not relate to the company’s current or any previously reported financial results. According to the findings, there were no material inaccuracies or omissions in PacBio’s 2024 Form 10-K, a comprehensive report filed annually that provides a detailed overview of a company’s financial condition.

Chairman of the Board, John Milligan, commented on the conclusion of the investigation, stating, "We are pleased to have this investigation behind us and look forward to continuing to fulfill our mission of enabling the promise of genomics to better human health."

PacBio is a leading life science technology company that develops sequencing solutions to help scientists and clinical researchers solve complex genetic problems. Its product line includes the HiFi long-read sequencing technology, which is applied in various research domains such as human germline sequencing, plant and animal sciences, infectious diseases, microbiology, oncology, and other emerging fields. The company emphasizes that its products are intended for research purposes only, not for diagnostic procedures.

This announcement comes as a relief for the company, which has faced scrutiny due to the allegations. The company’s stock has experienced significant volatility, currently trading at $1.14, near its 52-week low, with a 49.21% decline over the past six months. According to InvestingPro analysis, which offers 10+ additional exclusive insights about PACB, the stock appears to be trading near its Fair Value. Moving forward, PacBio aims to continue its work in the life sciences sector, contributing to advancements in genomic research, despite generating $152.36 million in revenue over the last twelve months.Get deeper insights into PACB’s financial health and market position with InvestingPro, featuring comprehensive analysis and expert-curated ProTips for over 1,400 US stocks.

The information for this article is based on a press release statement from PacBio.

In other recent news, Pacific Biosciences of California reported its Q1 2025 earnings, surpassing expectations with an earnings per share (EPS) of -0.15, compared to the forecasted -0.19. The company’s revenue reached $37.2 million, slightly exceeding the anticipated $33.5 million, though it marked a decrease from the previous year. Despite the revenue decline, the company noted strong growth in consumable revenue, which increased by 26% year-over-year. Pacific Biosciences is implementing a restructuring plan aimed at reducing annual expenses by $45-50 million. In terms of future outlook, the company expects full-year revenue between $150 million and $170 million, adjusting the lower end due to potential impacts from U.S.-China trade tariffs and proposed NIH budget reductions. The restructuring plan involves significant headcount reductions, which may affect operations, but the company remains focused on its long-read sequencing technology. Additionally, Pacific Biosciences continues to gain traction in clinical and translational research settings, despite ongoing challenges in academic funding.

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