Fed Governor Adriana Kugler to resign
SOUTH SAN FRANCISCO - Standard BioTools Inc. (NASDAQ:LAB) announced today the sale of its SomaLogic business to Illumina, Inc. (NASDAQ:ILMN), a $14.3 billion market cap genomics leader with annual revenue of $4.3 billion, for $350 million in upfront cash and up to $75 million in near-term milestone payments.
The transaction includes SomaScan Assay Services, Authorized Sites and KREX technology. Standard BioTools will retain certain Single SOMAmer reagent commercialization rights and will receive a 2% royalty on sales of SOMAmer-based next-generation sequencing library preparation kits for 10 years following the closing. According to InvestingPro data, Illumina maintains a strong gross profit margin of 69% and operates with moderate debt levels, suggesting capacity for strategic acquisitions.
The deal is expected to close in the first half of 2026, subject to regulatory approvals including Hart-Scott-Rodino clearance and other customary closing conditions.
"Since acquiring SomaLogic 18 months ago, we have fundamentally transformed the business," said Michael Egholm, President and CEO of Standard BioTools. "With SomaScan now in a position to realize its potential, full alignment across technology, applications and commercial capabilities is essential."
The transaction is designed to simplify Standard BioTools’ operational structure and enable the company to achieve adjusted EBITDA break-even. Following the close, Standard BioTools expects to have at least $550 million in cash and cash equivalents, which it plans to use for strategic acquisitions.
The company stated it is pursuing a disciplined M&A strategy targeting underappreciated assets with validated science and clear commercialization paths, focusing on technologies with strong margin potential and recurring revenue models.
The transaction has received unanimous approval from both the Standard BioTools Board of Directors and a Special Committee of the board.
Centerview Partners is serving as financial advisor to Standard BioTools, with Freshfields and Richards, Layton & Finger as legal counsel. UBS Investment Bank is advising the Special Committee of the board.
This article is based on a press release statement from Standard BioTools. For deeper insights into Illumina’s financial health (currently rated as FAIR by InvestingPro) and detailed analysis of its growth prospects, including 7 additional exclusive ProTips, subscribers can access the comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ US equities.
In other recent news, Illumina Inc. has introduced PromoterAI, an artificial intelligence algorithm aimed at enhancing the diagnosis of rare diseases by identifying pathogenic genetic variants in noncoding regions of the human genome. This development is expected to improve diagnostic rates for rare diseases by interpreting promoter sequences, which are crucial for gene expression. Additionally, Illumina has expanded its clinical oncology portfolio with the FDA-approved TruSight Oncology Comprehensive test and the Pillar oncoReveal® CDx diagnostic kit, both designed to improve patient access to precision oncology and targeted therapies. The TruSight Oncology test is the first FDA-approved comprehensive genomic profiling in vitro diagnostic kit, now covered by Medicare and various commercial health plans.
In terms of financial outlook, Canaccord Genuity has raised its price target for Illumina stock to $99 while maintaining a Hold rating, citing improved confidence in the company’s execution despite macroeconomic challenges. Piper Sandler has reiterated its Overweight rating with a $185 price target, expressing optimism for Illumina’s long-term prospects despite short-term funding and geopolitical challenges. Meanwhile, Stifel has maintained a Buy rating with a $135 target, highlighting robust sequencing activity and a positive clinical trajectory, despite concerns about academic spending and potential impacts from China. These developments reflect a mix of cautious optimism and confidence in Illumina’s strategic initiatives and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.