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MENLO PARK, Calif. – Pacific Biosciences (NASDAQ:PACB) of California, Inc. (NASDAQ:PACB), known as PacBio, a developer of high-accuracy sequencing solutions with a market capitalization of $550 million, has announced its preliminary unaudited financial results for the fourth quarter and the full year of 2024. The company reported a 33% year-over-year decline in quarterly revenue to $39.2 million and a 23% decrease in annual revenue to $154 million. According to InvestingPro data, the stock has experienced significant volatility, with a 70% decline over the past year, though it has shown a 10% recovery year-to-date.
Despite the financial downturn, PacBio's President and CEO, Christian Henry, highlighted 2024 as a productive year, citing the launch of innovative products and advancements in the company's clinical market strategy. PacBio has expanded its sequencing portfolio with the Vega system, a benchtop sequencing platform designed to bring HiFi long-read sequencing to a wider customer base. Additionally, the company introduced SPRQ chemistry for the Revio system, which allows for the sequencing of a HiFi long-read human genome for under $500. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 9.74, though it faces challenges with rapid cash consumption.
The company has also begun shipping its Vega systems to Berry Genomics under an early access agreement, supporting the development of targeted assays for health screenings in China and other markets. Financially, PacBio has strengthened its position by exchanging $459 million in convertible senior notes due in 2028 for $200 million in new notes due in August 2029, plus around 20.5 million shares of common stock and $50 million in cash. The preliminary results indicate that the unrestricted cash, cash equivalents, and investments by the end of 2024 are expected to be roughly $390 million. With analyst price targets ranging from $2 to $6 per share, investors seeking deeper insights can access comprehensive analysis through InvestingPro's detailed research reports.
PacBio's preliminary fourth-quarter instrument revenue was approximately $15.3 million, including sales of 23 Revio systems and 7 Vega systems, marking a decrease from $35.1 million in the same quarter of the previous year. Consumables revenue remained nearly unchanged at $18.8 million, and service and other revenue rose to $5.1 million from $4.4 million.
The company is scheduled to present at the 43rd Annual J.P. Morgan Healthcare Conference and will discuss its financial results in more detail during a conference call in February. These preliminary estimates are not final and are subject to revision upon the filing of PacBio's 2024 Annual Report on Form 10-K.
This article is based on a press release statement from PacBio.
In other recent news, Pacific Biosciences of California, Inc., known as PacBio, has seen a series of significant developments. The company reported an 11% quarter-over-quarter revenue increase in Q3 2024, totaling $40 million, despite a year-over-year decrease from Q3 2023. Concurrently, PacBio announced the initial delivery of its Vega sequencing systems to Berry Genomics as part of an early access agreement, marking a significant step in advancing genetic screening programs in China.
PacBio also made changes to its executive team, amending severance agreements for President and CEO Christian O. Henry and Chief Operating Officer Mark Van Oene. The company appointed CEO Christian Henry as interim Chief Financial Officer and announced the departure of Chief Commercial Officer Jeff Eidel amid internal restructuring.
In product development, PacBio 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 also formed strategic partnerships with Azenta Life Sciences and the National Precision Medicine Program of Singapore.
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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