SAN DIEGO - Illumina, Inc. (NASDAQ: ILMN), a leader in DNA sequencing technology, announced today it has completed the acquisition of Fluent (NASDAQ:FLNT) BioSciences, a company specializing in single-cell analysis technology. This move is set to expand Illumina's multiomics capabilities and provide its customers with enhanced tools for research and discovery.
The acquisition introduces Fluent's proprietary single-cell analysis method to Illumina's portfolio, which is poised to make such analysis more accessible and flexible. Fluent's technology, notably the PIPseq™ V, allows for the detection of a wider range of cell types and offers scalability from 100 to 1 million cells without the need for complex and costly equipment.
Steven Barnard, Chief Technology Officer at Illumina, emphasized the significance of the acquisition, stating that it will "accelerate our ability to deliver full multiomics solutions for our customers" and will enable researchers to advance discovery more rapidly and economically.
The Fluent team is set to join Illumina, and their PIPseq V technology will be integrated into Illumina's product offerings. Illumina plans to further develop this technology to provide end-to-end solutions for single-cell analysis.
Illumina has funded the acquisition with cash on hand and reaffirmed its commitment to maintaining an open NGS platform and supporting existing single-cell partnerships. The company's goal is to continue developing the sequencing ecosystem and to offer flexible tools that best fit customer needs.
This strategic acquisition, which closed today, is expected to strengthen Illumina's position in the single-cell market, although the company acknowledges that actual results may vary and are subject to risks and uncertainties. The integration of Fluent's technology into Illumina's operations and portfolio is among the key factors that will determine the success of this venture.
In other recent news, Illumina Inc (NASDAQ:ILMN). has seen significant developments in its corporate strategy. The company recently announced plans to spin off GRAIL, a healthcare company focused on early cancer detection. This decision follows the reduction of Illumina's price target by Baird to $119, resulting from the divestment plan. Despite this, Baird maintains a neutral rating on the company's stock and is cautiously optimistic about its medium-term prospects.
Evercore ISI has also adjusted its financial outlook for Illumina, reducing the price target to $175 while retaining an Outperform rating. The firm projects a standalone earnings per share (EPS) of over $4.50 for the fiscal year 2025. On another note, Canaccord Genuity has maintained a Hold rating on Illumina's shares, acknowledging that the separation of GRAIL is a positive step, but expressing uncertainty about GRAIL's valuation.
Following its separation from Illumina, GRAIL is set to debut independently on the Nasdaq stock exchange. The company's growth strategy is centered around its flagship cancer-detection test, Galleri, and it has already established over 100 commercial partnerships. These are recent developments that investors should be aware of as they reflect the evolving landscape of Illumina's business operations.
InvestingPro Insights
Illumina, Inc. (NASDAQ: ILMN) has announced the acquisition of Fluent BioSciences, marking a significant step in expanding its multiomics capabilities. As investors and industry watchers evaluate Illumina's financial health and growth prospects following this strategic move, several metrics and analyst insights from InvestingPro provide a clearer picture of the company's current position.
InvestingPro Data reveals that Illumina has a Price to Earnings (P/E) Ratio of -40.11, reflecting investor expectations of future earnings growth despite the company not being profitable over the last twelve months. The Price to Book (P/B) Ratio stands at 2.93, which could suggest that the market values the company's assets favorably in relation to its current share price. Additionally, Illumina has maintained a Gross Profit Margin of 65.72%, indicating a strong ability to control costs and generate profits from its sales.
InvestingPro Tips highlight that net income is expected to grow this year, with 4 analysts having revised their earnings upwards for the upcoming period. This is particularly relevant as the company integrates Fluent BioSciences' technology, potentially leading to new revenue streams and cost synergies. Moreover, analysts predict that Illumina will be profitable this year, which could be a turning point for investors considering the company's high EBITDA valuation multiple.
For those looking to delve deeper into Illumina’s financials and gain more insights, InvestingPro offers additional tips on the company's performance and outlook. Prospective and current investors can use the exclusive coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to an extensive list of InvestingPro Tips for a comprehensive analysis.
The acquisition of Fluent BioSciences is poised to further solidify Illumina's leadership in the DNA sequencing space, and the financial metrics and analyst insights provided by InvestingPro paint an optimistic picture for the company's future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.