MENLO PARK, CA – Pacific Biosciences (NASDAQ:PACB) of California, Inc. (NASDAQ:PACB), a leader in laboratory analytical instruments currently valued at $535 million, has amended the severance agreements for two top executives, the company disclosed in a recent SEC filing. The changes affect President and CEO Christian O. Henry and Chief Operating Officer Mark Van Oene. The company's stock has experienced significant volatility, declining nearly 77% over the past year according to InvestingPro data.
The Compensation Committee and the Board of Pacific Biosciences approved the revisions on December 11 and December 12, 2024, respectively. Notably, any severance pay due to these officers will now be delivered as a lump sum cash payment. The payment will be equivalent to twelve months of the executive's base salary, and eighteen months in the case of Mr. Henry. This comes as InvestingPro analysis shows the company is rapidly burning through cash, with a negative free cash flow of $240 million in the last twelve months.
Additionally, the period considered for change of control in these agreements has been extended. It will now cover the three months leading up to a change in control and the twelve months following it.
These amendments have been incorporated into the restated change in control and severance agreements for Mr. Henry and Mr. Van Oene. The company plans to include the full text of these updated agreements as exhibits to its Annual Report on Form 10-K for the year ending December 31, 2024.
The announcement provides a clear signal that Pacific Biosciences is adjusting its executive compensation strategy. The move could be interpreted as an effort to retain top leadership by offering more immediate financial security in the event of significant corporate changes.
While the company maintains strong liquidity with a current ratio of 9.74, InvestingPro analysis indicates the stock is currently undervalued. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report, part of the platform's coverage of over 1,400 US stocks.
The company, headquartered at 1305 O'Brien Drive in Menlo Park, California, is incorporated in Delaware and operates under the SIC code for Laboratory Analytical Instruments. This information is based on a press release statement.
In other recent news, Pacific Biosciences of California, Inc. has reported an 11% quarter-over-quarter revenue increase in Q3 2024, totaling $40 million, despite a year-over-year decrease from Q3 2023.
The company also announced executive changes with Christian Henry, the President and CEO, taking on the additional roles of interim Chief Financial Officer and assuming responsibilities of the departing Chief Commercial Officer, Jeff Eidel. These developments occur amidst an internal restructuring of the commercial organization.
Moreover, Pacific Biosciences has 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 has also engaged in strategic partnerships and expansions with Azenta Life Sciences and the National Precision Medicine Program of Singapore, expected to drive future growth.
In terms of 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.
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