that this company is NOT just another big science project that went public to make the owners rich. I was cautious about buying until they actually shipped some units (15 or 16 ?) and had revs of more then double of estimates for last qtr. I felt I was just lucky to have waited until the price was cut in 1/2 to ~$6 before I bought. Now they claim that sales are not there and thats why the layoffs are happening.
It is nearly impossible for a person who is not strong in the life-sciences to grasp the nuances of the biotech industry---and that includes me. This is why I never went after a biotech drug co. One bad word from the FDA and BAM! you lose 50%
I felt that a sequencing company ( THE RIGHT ONE) would be selling hardware to MANY of the biotechs and was a safer bet. But picking the winner is a tough chore. I do see that ILMN took a big hit today also, so just maybe the BIG players are rotating out of the group for a while----or just picking up cheap shares as it slides.
I own GNOM. Not sure if you follow the company or not? I feel their total outsourced sequencing model allows for a more economical choice amongst research and clinical institutions.
Rather than investing large sums of $$ upfront in sequencing equipment, personel, office space, etc, GNOM provides everything needed to analyze the gene (via the cloud) at a fraction of the cost.
That said, it seems this space has experienced a slowdown in demand due to the overall economy and constrained research budgets. It's hard to argue with this technology being a game changer in the world of medicine, but unless folks are willign to adopt it, hard to say just when it will take off??
GNOM---That is an interesting business model they have ---sequencing as a service. BUT--at some point in their process, a sequencing machine has to be used. In their case it appears to be some sort of array on a chip. I simply cannot say if this approach is technically superior to PACB or any other approach. The question remains--what sequencing machine company or companies will be the ultimate winner?
Sequencing machines are not a commodity item, so there is still major money to be made in building the hardware, and suppling the consumables (Razors & Blades analogy) Maybe the gimmick is to basically FLOOD the market with your machines and make the $$$$ with your consumables.
My take is that there is room for a few GOOD companies to win---with some of them perhaps specializing in a specific aspect of the sequencing market.