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PacBio Stock Drops After Singapore Collaboration for HiFi Sequencing

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Pacific Biosciences of California, Inc. (PACB - Free Report) or PacBio recently announced a collaboration with HiFi Solves Sub-Fertility Consortium, led by KK Women’s and Children’s Hospital in Singapore. The consortium will use PACB’s HiFi long-read sequencing to pioneer advancements in diagnosing and treating subfertility and recurrent pregnancy loss (RPL). The consortium includes experts from five leading centers across the Asia-Pacific region and leverages DNAstack’s federated data platform to ensure secure, global collaboration on genomic datasets.

The HiFi Solves Sub-fertility Consortium aims to reduce the lengthy and frustrating "diagnostic odyssey" many patients face, providing a more efficient path to diagnosis and care. The initiative is expected to significantly improve the success of assisted reproductive technologies, including preimplantation genetic testing for structural rearrangements, ultimately leading to higher conception rates and healthier pregnancies.

Shares of PACB, however, closed 3.5% lower on Sept. 11 following the news.

PacBio’s Key Partnership Boosts HiFi Sequencing's Impact

Utilizing PacBio’s HiFi sequencing technology, the consortium will offer a precise, high-resolution analysis of complex chromosomal abnormalities, surpassing traditional methods. This initiative has the potential to streamline fertility diagnoses, enhance assisted reproductive technologies and revolutionize care for millions affected by subfertility and RPL worldwide. The project underscores PacBio’s role in advancing reproductive health through cutting-edge genomic medicine.

Subfertility affects one in six people globally, while RPL impacts 1-2% of women, causing significant psychological and financial strain. The HiFi Solves Sub-fertility Consortium uses PacBio HiFi sequencing technology to address these challenges directly.

Unlike traditional methods like karyotyping or whole-exome sequencing, HiFi sequencing provides a high-resolution, comprehensive view of complex chromosomal rearrangements and sub-microscopic abnormalities that other technologies may overlook. This approach offers a comprehensive view of chromosomal changes, providing more accurate characterization, especially in cases of subfertility and RPL, where multiple genetic factors may be at play. This advanced approach promises more accurate diagnoses and better outcomes for affected individuals.

Updates on PacBio’s Upcoming HiFi Initiatives

The HiFi Solves Sub-Fertility Consortium will implement a phased approach through 2025, focusing on patient recruitment, advanced sequencing, bioinformatics analysis and rigorous result validation. The consortium aims to influence global clinical practices by contributing to peer-reviewed publications and showcasing breakthroughs at international conferences. This project marks a major leap in genomic medicine for reproductive health.

Market Prospects Favoring PACB

Per a report in Grand View Research, the global long-read sequencing market size was worth $572.9 million in 2023. It is anticipated to reach $3.78 billion by 2030 at a CAGR of 30.92%.

The robust growth is likely to be driven by the advantages offered by long-read sequencing techniques, potential applications in clinical sequencing and analysis and advancements in data analysis platforms.

PACB Stock Price Performance

Shares of PacBio have plunged 82.9% year to date against the industry’s 9.2% growth. The S&P 500 has witnessed a 15% rise in the same time frame.

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Zacks Rank & Key Picks

Currently, PacBio carries a Zacks Rank #3 (Hold).

Some top-ranked stocks in the broader medical space are Universal Health Services (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) and Aveanna Healthcare (AVAH - Free Report) . While Universal Health Services sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and Aveanna Healthcare carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.

Universal Health Services has gained 41.1% compared with the industry's 34.8% growth year to date.

Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.

Quest Diagnostics shares have risen 3.7% year to date compared with the industry’s 10.2% growth.

Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 47.5%.

AVAH's shares have risen 104.5% year to date compared with the industry’s 15.7% growth.

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