They should have sold the company versus 35M in onetime revenue and up to 40M in payments over life.
Pacific Biosciences Announces Agreement With Roche Diagnostics: $35M upfront + up to $40M milestone payments
Management equates to dunces. They bled the company and then this deal is a bandaid.
Company loses greater than 80M a year. Trades at 3 to 5x valuation of any other peer. The IPO fed their ignorance. Will just be a quick drip to 4.50. One company I do like did a secondary today KBIO, rather good longer term hold. Lot's of institutional holding and buying, several catalysts over the next 9 months, did a secondary today at 4 which was BS, but a good buying opportunity.
Because on one wants them. The real story is something like this.
Roche: I want to buy illumina. Illumina: No.
Roche: I want to buy life. Life: I like Fisher better.
Roche: We should do something to show we are in the NGS business. Let's give pacbio some money.
Pacbio: Where should we get more money. where should we get more money. Oh, here is Roche. they are stupid and probably would give us some so we can live a little longer.
You are a complete moron. The deal also stipulates that for 13 years PacBio will exclusively sell the reagents instruments and kits to Roche for human diagnostics IN ADDITION TO the lump sum and milestone payments.