SINGAPORE - Pacific Biosciences (NASDAQ:PACB) of California, Inc. (NASDAQ: PACB), known as PacBio, has entered into a Research Collaboration Agreement (RCA) with the National Cancer Centre Singapore (NCCS), aiming to advance cancer research in Asia. The collaboration, announced today, will utilize PacBio's Onso short-read sequencing platform and Kinnex long-read sequencing kit to profile the genomic landscape of prevalent cancers in the region.
The Onso platform, recognized for its high accuracy in short-read sequencing, will be instrumental in detecting mutations across various cancer types, including gastrointestinal stromal tumors (GIST). This technology is expected to bring forth robust analysis for better cancer diagnostics and treatments.
PacBio's authorized channel partner, DKSH, has facilitated the installation of the Onso platform at NCCS's Cancer Discovery (NASDAQ:WBD) Hub, which focuses on cancer research and discovery. This initiative is anticipated to benefit not only the local community but also the broader Asian research landscape.
The RCA also includes the use of PacBio's Revio long-read sequencing capabilities, allowing comprehensive multi-omics studies, particularly at the single-cell level. The combination of Onso and Revio platforms is aimed at providing a complete analysis of the cancer genome, which could lead to advancements in precision oncology.
Asst Prof Jason Chan, Director of the Cancer Discovery Hub at NCCS, expressed enthusiasm about the collaboration. Jason Kang, General Manager and Vice President of PacBio APAC, also commented on the partnership, highlighting PacBio's commitment to enhancing cancer research with their sequencing platforms.
The collaboration between PacBio and NCCS is part of a broader effort to resolve complex genetic problems in various research applications, including oncology. While the press release contains forward-looking statements about the potential benefits of the collaboration, these statements are subject to assumptions, risks, and uncertainties.
This news is based on a press release statement from PacBio, which has not been independently verified. PacBio's products are currently provided for Research Use Only, not for diagnostic procedures.
In other recent news, Pacific Biosciences of California experienced a challenging first half of 2024, with second-quarter total revenue reaching $36 million, falling short of expectations. Despite this, the company reported a 24% year-over-year increase in consumable revenue. As part of its strategic restructuring plan, Pacific Biosciences aims to reduce non-GAAP operating expenses by over $75 million annually, guiding the company towards the lower end of its full-year revenue guidance of $170 million to $200 million.
Scotiabank has adjusted its outlook on the company, reducing the price target to $7 from $8, while maintaining a Sector Outperform rating. This revision reflects a more conservative stance on Pacific Biosciences' revenue projections for 2024 and 2025, due to anticipated slower recovery from current market constraints on capital spending.
Despite near-term growth concerns, Scotiabank remains optimistic about Pacific Biosciences' future, particularly due to the potential of its HiFi sequencing technology and the increased adoption of its Revio system. The company also plans to achieve over $75 million in annualized run rate cost savings by the end of 2024. These are recent developments in the company's ongoing efforts to achieve cash flow positivity by the end of 2026.
InvestingPro Insights
As PacBio embarks on this promising collaboration with the National Cancer Centre Singapore, investors should consider some key financial metrics and insights from InvestingPro.
PacBio's market capitalization stands at $422.42 million, reflecting its position in the biotech industry. The company's revenue for the last twelve months as of Q2 2024 was $188.87 million, with a notable revenue growth of 29.24% over the same period. This growth aligns with PacBio's efforts to expand its presence in the cancer research market, as evidenced by the new partnership in Singapore.
However, it's important to note that PacBio is currently not profitable, with an adjusted operating income of -$301.81 million for the last twelve months. This aligns with an InvestingPro Tip indicating that the company is quickly burning through cash. This financial situation underscores the importance of strategic partnerships like the one with NCCS, which could potentially lead to new revenue streams and technological advancements.
Another InvestingPro Tip highlights that PacBio's stock price has taken a significant hit over the last year, with a one-year price total return of -82.83%. This volatility in stock price suggests that investors should closely monitor the company's progress in its research collaborations and product developments.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for PacBio, providing a more comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.