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MENLO PARK, Calif. - Pacific Biosciences (NASDAQ:PACB) of California, Inc. (NASDAQ: PACB), known as PacBio, announced today the initial delivery of its Vega sequencing systems to Berry Genomics, a China-based genomics service provider. According to InvestingPro data, PacBio has shown strong momentum with a 49% price return over the past six months, despite its current market capitalization of approximately $548 million. This marks a significant step in an early access agreement between the two companies, which aims to advance genetic screening programs in China and potentially other markets.
As part of the agreement, Berry Genomics has committed to purchasing over 50 Vega units and will work on optimizing their targeted assays for carrier, prenatal, and newborn screening programs. This deal comes as PacBio faces financial challenges, with InvestingPro analysis showing the company is quickly burning through cash, though it maintains a healthy current ratio of 9.74, indicating strong short-term liquidity. The company will also seek regulatory approval from the National Medical (TASE:PMCN) Products Administration (NMPA) in China and pursue product registrations in other countries.
Mark Van Oene, Chief Operating Officer of PacBio, noted the instrumental role Berry Genomics has played in the development of Vega, building on their experience with PacBio’s Sequel II system. Dr. Aiping Mao, Vice Director of Berry Genomics R&D, highlighted the need for genomics equipment that is suitable for small to medium-sized laboratories in China, emphasizing the potential of the Vega system to meet these needs and to enhance clinical genomic services.
The Vega system, introduced by PacBio last year, is a benchtop long-read sequencing platform that incorporates the functionalities of the high-throughput Revio system into a more compact form. It is designed to provide highly accurate long-read sequencing with a quick turnaround time, making it an ideal choice for laboratories looking to adopt this technology for a range of applications.
PacBio, a leading life science technology company, develops advanced sequencing solutions to address complex genetic challenges. Their technologies are used in various research applications including human germline sequencing, plant and animal sciences, and oncology, among others. Berry Genomics, established in 2010 and publicly listed in 2017, focuses on the clinical application of genetic testing technology, with a particular emphasis on reproductive health, genetic disease testing, and tumor testing.
This news is based on a press release statement and reflects the ongoing collaboration between PacBio and Berry Genomics, highlighting the potential impact of the Vega system on genetic screening in China and beyond. With annual revenue of $173 million and analysts projecting a sales decline this year, investors seeking deeper insights can access comprehensive analysis through InvestingPro, which offers exclusive access to over 10 additional ProTips and detailed financial metrics for more informed investment decisions.
In other recent news, Pacific Biosciences of California, Inc. reported an 11% quarter-over-quarter revenue increase in Q3 2024, totaling $40 million, despite a year-over-year decrease from Q3 2023. The company has also made significant changes to its executive team. Pacific Biosciences has amended severance agreements for President and CEO Christian O. Henry and Chief Operating Officer Mark Van Oene, providing a lump sum payment equivalent to twelve to eighteen months of the executive's base salary, according to a recent SEC filing.
Furthermore, the company has appointed CEO Christian Henry as interim Chief Financial Officer and has announced the departure of Chief Commercial Officer Jeff Eidel as part of an internal restructuring. In product development, Pacific Biosciences has introduced the upgraded Revio platform with SpaRC chemistry and the Vega benchtop sequencer, aiming to become cash flow positive by the end of 2026.
The company has also formed strategic partnerships with Azenta Life Sciences and the National Precision Medicine Program of Singapore, expected to drive future growth. As for future expectations, analysts project a flat to slightly increased revenue in Q4 compared to Q3, with a lowered full-year revenue forecast below $170 million. These are among the recent developments for Pacific Biosciences.
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