Pacific Biosciences of California, Inc. PACB recently delivered its first Vega systems to Berry Genomics as part of an early access agreement announced in 2022. Under the terms of the original agreement, Berry Genomics is likely to develop and optimize its targeted assays to support carrier, prenatal and newborn screening programs in China and other markets.
Vega systems are advanced sequencing platforms, designed for high-throughput, precise genomic analysis. These systems utilize PacBio's HiFi sequencing technology, which delivers accurate long-read sequencing data, suitable for applications such as clinical diagnostics and assay development. Vega systems are tailored for scalability and efficiency, supporting large-scale genomic projects, including those in healthcare and research.
(Read more: Reasons to Retain PacBio Stock in Your Portfolio for Now)
Likely Trend of PACB Stock Following the News
Following the announcement, shares of the company moved north 5% and closed at $2.10 yesterday. In the past six months, PACB’s shares have gained 61.6% compared with the industry’s growth of 2.1%. The S&P 500 has gained 5.3% in the same time frame.
This news highlights PacBio’s expansion into Asia’s market, a significant growth area for genomics and clinical diagnostics. By partnering with Berry Genomics and deploying advanced Vega systems, PacBio positions itself as a leader in high-precision sequencing technology. This collaboration enhances the company’s global footprint, fosters innovation in clinical assay development and demonstrates demand for its cutting-edge products. Over time, such strategic moves can boost investor confidence, increase revenue streams and positively impact the stock’s price as PACB’s market influence grows.
PACB currently has a market capitalization of $575.1 million. The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $155.7 million, indicating 22.4% decline from the reported figure of fiscal 2023.
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More on PACB’s Collaboration With Berry Genomics
In January 2022, PacBio and Berry Genomics, a leading company in clinical genomics and life science in China, announced a collaboration to provide the former long-read sequencing technology in the Chinese clinical market. Under the agreement, PacBio was to develop its first long-read desktop sequencing platform with funding and guidance provided by Berry Genomics. When the agreed product requirements are met, Berry Genomics was to purchase at least 50 systems for use and sale throughout China.
This collaboration builds off the earlier success of the 2019 agreement between the two companies whereby Berry Genomics supported the regulatory authorization of the PacBio Sequel II instrument for clinical use in China and sold the instrument and consumables.
In the next phase of the relationship, Berry Genomics will build on the platform to deliver a solution, designed for the characteristics of its clinical customers and the population the company serves. The company will take the resulting instrument through the National Medical Products Administration regulatory review process in China and support additional product registrations in other markets.
Favorable Industry Prospects for PACB
Per a report by Grand View Research, The global long-read sequencing market size was valued at $455.1 million in 2022 and is expected to grow at a CAGR of 30.92% from 2023 to 2030.
The major factors driving the market growth include the rising prevalence of genetic diseases, such as cancers as well as chromosomal disorders, the rising popularity of personalized medicine and rising technological advancements resulting in the emergence of newer technologies, such as third-generation sequencing.
PACB’s Zacks Rank & Other Stocks to Consider
PACB carries a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and Abbott Laboratories ABT.
Masimo, carrying a Zacks Rank #2 at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 31.7% against the industry’s 1% decline in the past six months.
Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.
ARAY’s shares have gained 8.8% against the industry’s 1% decline in the past six months.
Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.
ABT’s shares have risen 8.5% in the past six months compared with the industry’s 7.2% growth.
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