As a developer and manufacturer of integrated platforms for genetic analysis, Pacific Biosciences is on the cutting edge of research technology. The company competes against the likes of Illumina Inc (ILMN) and Life Technologies Corp (LIFE). With its main sequencing platform product, the PacBio RS, customers of Pacific Biosciences are able to incorporate single molecule, real time analysis. They are also able to perform longer readlengths which is a unique aspect of the system. As noted in an article published by UCSD found here, the University believes that such a feature "will allow insights into biology that are not possible with existing technologies." As sequencing organisms becomes more complicated and detailed, the PacBio RS provides one of the leading solutions when it comes to capabilities. Longer readlengths allow a more comprehensive view of the genome and sequencing results can be reduced to less than a day.
With a market capitalization of $92 million, Pacific Biosciences supplies genome centers, agricultural companies, government offices, and academic institutions with platforms that provide the unique detection of biological processes. The company has performed very poorly in recent years as it unveiled the PacBio RS but struck a rather upbeat note in its latest quarterly conference call found here. Having finally worked out its primary product's bugs and increased its backlog orders, management cites that the company's clients are beginning to turn to the PacBio RS in light of its advantages in a very niche market. The backing of academia and the renewed praise from clientele suggest that the company has begun to turn around after fixing its prior issues.
What makes all of this a little more interesting is a recent filing submitted by the company. As listed in the filed Form 8-K found here, the CEO along with the CFO both agreed to a pay reduction down to a base salary of $1. In a most atypical commitment to the company, these officers apparently express their confidence in the company's future by dropping their own pay. In my previous article found here, I noted that the company's CEO had also been conducting numerous insider purchases. It would appear as if both of these actions strongly express the confidence of upper management in the company's product line. It takes a very bold person to reduce pay and wager one's compensation on the back of stock performance. The recent insider purchases by the CEO suggest a strong outlook that investors should be sure to take note.
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