"The developer of gene mapping technology sold 12.5 million shares at $16 each yesterday."
This corresponds to a market capitalization of $200 million.
One of the reasons that I like this (PACB) stock so much is that Life Technologies just paid $375 million in cash and stock for "Ion Torrent" which is another high-throughput sequencing technology similar to pyrosequencing (but different in that it is based on hydrogen ion generation). The Ion-Torrent technology was originally intended to be sold for $50,000 and to be implemented in every doctor's office in the Western hemisphere.
However, in viewing the PACB video, this new sequencing technology blows all prior sequencing techniques out of the water. If it is true that this instrument can perform a complete human genome sequence in 1 hour (as alluded to in the PACB video)-- then NOTHING on the market can compete with this.
The potential market for PACB and other high-throughput sequencers can be viewed in the following link: (you fill in http:) //pathogenomics.bham.ac.uk/hts/
I estimate that PACB can sell 1000 instruments over the next 10 years, corresponding to instrument sales of approximately $600 million. Assume 100 instruments/year corresponding to $60 million. Assume also a consumable volume of $600,000 per instrument, yielding a net $60 million in consumables per year (which integrates year after year).
According to my layman's unsophisticated estimates:
Their sales in consumables alone after 10 years may be $600 million/year. 10 net sales may be $3.9 Billion. Annual sales after 5 years should top $360 million. Assuming a price/sales ratio of 4, this corresponds to a $1.4B market value in 5 years, or roughly 7X the market cap of today.
"""The developer of gene mapping technology sold 12.5 million shares at $16 each yesterday." This corresponds to a market capitalization of $200 million.""
Not entirely true. Not knowing the total number of shares the company has issued, the MC of the company is unknown. The $200m is just the value of 12.5 m shares sold to the public. I believe they are just a fraction of the total number.