PacBio to enhance DNA methylation detection technology

MENLO PARK, Calif. - Pacific Biosciences (NASDAQ:PACB), a $324.66 million market cap company trading near its 52-week low, has announced a licensing agreement with The Chinese University of Hong Kong (CUHK) and Centre for Novostics to improve its methylation detection capabilities in HiFi chemistry. This enhancement is aimed at increasing the detection of DNA base modifications, including 5-hydroxymethylcytosine (5hmC) and 5-methylcytosine (5mC), in native DNA. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, despite facing profitability challenges.

The licensed technology includes an advanced AI deep learning framework, Holistic Kinetic Model 2 (HK2), which promises to significantly refine the accuracy of detecting 5mC and N6-methyladenine (6mA) and introduce native 5hmC calling in single molecules. This represents a first for HiFi sequencing.

PacBio’s HiFi sequencing technology, available on its Revio and Vega systems, allows for a comprehensive readout of the genome and epigenome without additional sample preparation or workflows. The new capabilities from the HK2 model will be available to existing customers through software updates at no extra cost.

Christian Henry, President and CEO of PacBio, commented on the integration of CUHK’s deep learning models, stating it will enable the detection of many additional methylation signatures. Professor Dennis Lo of CUHK expressed excitement about the broader deployment of this technology, emphasizing its importance for research in areas such as cancer and human development. With the company maintaining a strong liquidity position (current ratio of 7.48) but experiencing revenue decline (-23.19% over the last twelve months), investors can access detailed financial analysis and additional insights through InvestingPro’s comprehensive research reports.

PacBio was the pioneer in detecting native epigenetic modifications alongside DNA sequencing and has continually sought to enhance its HiFi chemistry. The company introduced on-instrument 5mC detection in April 2022 and extended support to 6mA in December 2024 for specialized chromatin architecture studies.

This advancement in methylation detection is anticipated to set a new standard for accuracy within the industry. Institutions like Children’s Mercy Kansas City and GeneDx have already adopted HiFi 5-base sequencing for clinical and diagnostic applications, demonstrating the technology’s potential.

The licensing of HK2 marks another milestone in PacBio’s leadership in long-read epigenomics. By offering high-resolution, native detection of 5mC, 6mA, and 5hmC, PacBio aims to empower researchers with more sophisticated tools for uncovering new biology. The company plans to roll out these capabilities to Revio and Vega through future software updates.

This news is based on a press release statement from PacBio.

In other recent news, Pacific Biosciences of California reported preliminary first-quarter revenues of $36.9 million, slightly down from $38.8 million the previous year, with a notable decline in instrument revenue but record-high consumable sales. The company is implementing cost-cutting measures, including workforce reductions, to address uncertain funding from the National Institutes of Health and other economic challenges. Additionally, Pacific Biosciences has partnered with the Davos Alzheimer’s Collaborative to advance dementia research in North Africa, using its sequencing technology to create a comprehensive dataset for Alzheimer’s genetics.

Analysts at Canaccord Genuity maintained a Buy rating for Pacific Biosciences, citing its strong consumable sales and Vega system placements, and kept the price target at $3. Meanwhile, Scotiabank adjusted its price target to $2, reflecting fiscal challenges but maintained a Sector Outperform rating, acknowledging the company’s innovative sequencing capabilities. Pacific Biosciences also announced the appointment of Jim Gibson as its new Chief Financial Officer, bringing extensive financial leadership experience to the company. Despite recent challenges, the company remains focused on achieving positive cash flow by the end of 2027, driven by its high-fidelity sequencing technology.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.