PacBio's (PACB) New Tie-Up to Boost Rare Disease Research
Pacific Biosciences of California, Inc. PACB, popularly known as PacBio, announced a clinical research study with Radboud University Medical Center (Radboudumc) to explore genetic causes of rare and genetic diseases. The study is also expected to explore the feasibility and cost-effectiveness of using PacBio’s HiFi sequencing technology for routine clinical use.
PacBio and Radboudumc aim to discover the genetic origins of rare and genetic diseases via collaboration.
The latest research collaboration is expected to significantly strengthen PacBio’s global sequencing business.
Rationale Behind the Collaboration
Per PacBio’s estimates, presently, the genetic basis of 50% of rare diseases remains unsolved due to the lack of accuracy and depth of current testing workflows. PacBio’s management believes that the study, designed to make significant discoveries in medical genetics, will likely enable it to better understand the critical gap by using its Revio sequencing systems to identify key variants at scale with higher accuracy.
Management also feels that the research, which has the potential to help revolutionize patient care each year, will also deepen PacBio’s understanding of the practical application of long-read sequencing technology in routine clinical use.
Radboudumc’s management feels that by studying the potential consolidation of standard molecular tests into a clinical workflow with PacBio HiFi whole genome sequencing (WGS), the project would be able to explore PacBio’s technology as a potential first-line assay. This is likely to pave the way for a more efficient and effective diagnostic process in the future.
Industry Prospects
Per a report by Grand View Research, the global WGS market was valued at $1,645.2 million in 2022 and is anticipated to expand at a CAGR of approximately 20.1% between 2023 and 2030. Factors like the growing prevalence of genetic disorders and mutations that lead to cancer progression and the possibility of identification and diagnosis of targeted diseases are expected to drive the market.
Given the market potential, the latest tie-up is expected to significantly strengthen PacBio’s global business.
Notable Developments
Last month, PacBio announced its first-quarter 2023 results, wherein it saw a robust increase in its overall top line, including strong revenues from Instrument and Consumables. Solid performances in the Asia-Pacific and Europe, the Middle East and Africa regions were also witnessed.
In April, PacBio announced the availability of its new high-throughput (HT) Nanobind DNA Extraction kits. The kits, a key product from PacBio’s Circulomics acquisition, are based on proprietary Nanobind disks. The disks can be used to extract DNA from diverse sample types, including blood, cell and tissue samples.
In March, PacBio announced new workflows developed with renowned agriculture company, Corteva Agriscience, enabling HT plant and microbial genome sequencing.
Price Performance
Shares of PacBio have gained 176.6% in the past year against the industry’s 18.3% rise and the S&P 500's 17.1% growth.
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Zacks Rank & Key Picks
Currently, PacBio carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. HOLX, Merit Medical Systems, Inc. MMSI and Boston Scientific Corporation BSX.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 19.1% compared with the industry’s 18.3% rise in the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20.2%.
Merit Medical has gained 59.9% compared with the industry’s 21.6% rise over the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 49.6% against the industry’s 20.3% decline over the past year.
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