Partnership and Collaboration - Berry Genomics will leverage PacBio's Vega system to develop long-read sequencing-based solutions for carrier, prenatal, and newborn screening programs in China and other markets [1] - Berry Genomics will build on the Vega platform to deliver solutions tailored to the characteristics of its clinical customers and the populations they serve [2] - Berry Genomics has committed to purchasing more than 50 Vega units as part of its agreement with PacBio [2] Technology and Product Development - The Vega system is PacBio's first benchtop long-read sequencing platform, offering exceptional data accuracy with HiFi technology and fast turnaround time [4] - Vega delivers the functionality of PacBio's high-throughput Revio system in a compact, lower-throughput benchtop platform, making it suitable for laboratories with limited space and sample volumes [4] - Berry Genomics will take the resulting instrument through the NMPA regulatory review process in China and support additional product registrations in other markets [2] Market and Application Focus - Next-generation sequencing technology has shown great potential in understanding genetic diseases and interpreting the human genome to benefit human health [3] - Small to medium-sized laboratories in China require genomics equipment that is compact, affordable, and capable of processing smaller sample volumes quickly [3] - Berry Genomics aims to provide best-in-class genomics services to clinical labs, unlocking new research opportunities and expanding the application of long-read sequencing technology [3][8] Company Background - PacBio is a premier life science technology company specializing in advanced sequencing solutions, including HiFi long-read sequencing and SBB short-read sequencing technologies [5] - Berry Genomics, established in 2010 and listed on the A-share main board in 2017, focuses on transforming genetic testing technology into clinical applications, particularly in reproductive health, genetic disease testing, and oncology [7][8]

Pacific Biosciences of California (PACB) closed at $2 in the latest trading session, marking a +0.5% move from the prior day. The stock's change was more than the S&P 500's daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq decreased by 1.89%.Heading into today, shares of the maker of genetic analysis technology had lost 8.72% over the past month, lagging the Medical sector's loss of 6.22% and the S&P 500's loss of 1.7% in that time.The investment c ...

Core Insights - PacBio will present at the 43rd Annual J.P. Morgan Healthcare Conference on January 14, 2025, at 4:30 PM PT in San Francisco, California [1] - A live webcast of the presentation will be available on the company's investor page, with a replay accessible for at least 30 days post-event [2] Company Overview - PacBio is a leading life science technology company specializing in high-quality sequencing solutions aimed at resolving genetically complex problems [3] - The company utilizes two core technologies: HiFi long-read sequencing and SBB® short-read sequencing, focusing on accuracy, quality, and completeness [3] - PacBio's products cater to various research applications, including human germline sequencing, plant and animal sciences, infectious diseases, microbiology, and oncology [3]

I'm an investment analyst with clinical experience in healthcare and an MBA, expanding my focus from biotech to a range of sectors. I've had the privilege of sharing my insights on Seeking Alpha since 2017, emphasizing financial modeling techniques like DCF analysis to identify underlying assumptions in stock valuations. I provide scenario-based forecasts to help readers gauge reasonable outcomes. Influenced by works like Superforecasting and Antifragile, I advocate for disciplined risk management through a ...

Revenue Performance - Revenue decreased to $114.8 million for the nine months ended September 30, 2024, down from $142.2 million for the same period in 2023, primarily due to lower Revio unit sales[104] - Total revenue for the three months ended September 30, 2024, was $39.967 million, a decrease of 28% from $55.691 million for the same period in 2023[111] - Revenue decreased by $27.4 million, or 19%, to $114.8 million for the nine months ended September 30, 2024, compared to $142.2 million for the same period in 2023[126] Instrument Revenue - Instrument revenue for the nine months ended September 30, 2024, was $50.5 million, compared to $85.3 million for the same period in 2023, reflecting a significant decline[104] - Instrument revenue for the three months ended September 30, 2024, decreased by 52% to $16.8 million, down from $34.7 million for the same period in 2023, with only 22 Revio systems sold compared to 52 in the prior year[112] - Product revenue decreased by $34.8 million, or 41%, to $50.5 million for the nine months ended September 30, 2024, primarily due to the sale of 74 Revio systems compared to 129 systems in the prior year[126] Gross Profit and Expenses - Gross profit decreased for the nine months ended September 30, 2024, primarily due to a decrease in revenue and $4.4 million of restructuring charges[104] - Gross profit decreased by $16.0 million, or 37%, to $27.2 million for the nine months ended September 30, 2024, with a gross margin of 24% compared to 30% in the same period of 2023[128] - Total operating expense increased by $58.4 million, or 20%, to $348.5 million for the nine months ended September 30, 2024[130] Loss and Impairment - Loss from operations increased to $321.3 million for the nine months ended September 30, 2024, compared to $246.9 million for the same period in 2023, driven by a $93.2 million goodwill impairment charge[104] - Goodwill impairment charge of $93.2 million was recorded for the nine months ended September 30, 2024, due to a decline in stock price and changes in expected future cash flows[132] Cash and Investments - Cash, cash equivalents, and short-term investments were $471.1 million at September 30, 2024, representing a 25% decrease compared to the balance at December 31, 2023[104] - As of September 30, 2024, cash, cash equivalents, and investments totaled $471.1 million, down from $631.4 million as of December 31, 2023[141] - Cash used in operating activities for the nine months ended September 30, 2024, was $175.4 million, an improvement from $201.6 million in 2023[144] Research and Development - Research and development expense decreased by $35.2 million, or 25%, to $107.5 million for the nine months ended September 30, 2024, driven by restructuring activities[129] Other Income and Expenses - Other income, net decreased to $19.7 million for the nine months ended September 30, 2024, compared to $24.3 million in the same period of 2023[126] - Interest expense for the nine months ended September 30, 2024, was $10.7 million, slightly down from $10.8 million for the same period in 2023[137] - Interest expense for the three months ended September 30, 2024, was $3.5 million, compared to $3.6 million for the same period in 2023[121] Future Plans and Developments - The company plans to reduce annualized run-rate operating expenses by the end of 2024, with restructuring charges of approximately $24.7 million incurred for the nine months ended September 30, 2024[103] - The Vega system, a new benchtop long-read sequencing platform, was announced on November 6, 2024, with shipments expected to commence in the first quarter of 2025[108] Financing Activities - Cash provided by financing activities for the nine months ended September 30, 2024, was $7.2 million, a significant decrease from $190.5 million in 2023[144] - A deferred income tax benefit of $10.7 million for the nine months ended September 30, 2023, was related to the release of the valuation allowance for deferred tax assets due to the Apton acquisition[139] - The company has a contingent consideration obligation of $25.0 million related to the Apton acquisition, contingent upon achieving $50.0 million in revenue[142] Interest Rate Sensitivity - A hypothetical 100 basis-point change in interest rates would have affected the fair value of the investment portfolio by approximately $2.4 million as of September 30, 2024[157]

Company Participation in Investor Conferences - PacBio will participate in several upcoming investor conferences, including the UBS Global Healthcare Conference on November 13, 2024, the Wolfe Research Healthcare Conference on November 19, 2024, the Stephens Annual Investment Conference on November 20, 2024, and the Piper Sandler 36th Annual Healthcare Conference on December 3, 2024 [1] Company Overview - PacBio is a leading life science technology company that specializes in advanced sequencing solutions aimed at resolving genetically complex problems [2] - The company’s core technologies include HiFi long-read sequencing and SBB® short-read sequencing, focusing on accuracy, quality, and completeness [2] - PacBio's products cater to a wide range of research applications, including human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications [2]

Core Insights - PacBio reported an adjusted loss per share of 17 cents for Q3 2024, an improvement from a loss of 27 cents in the same quarter last year, beating the Zacks Consensus Estimate by 15% [1] - Total revenues for the quarter were $40 million, down 28.2% year over year, and missed the Zacks Consensus Estimate by 4.6% [2] Revenue Breakdown - Revenues from the Americas were $20.1 million, a decline of 31% year over year, primarily due to decreased Revio shipments [3] - Asia-Pacific revenues totaled $10.8 million, reflecting a 32% year-over-year decline [3] - EMEA region revenues were $9.1 million, down 17% year over year [3] - Product revenues increased to $35.3 million, up 11.2% from the previous year [4] - Instrument revenues fell to $16.8 million, a decrease of 51.6% year over year due to lower Revio unit shipments [4] - Consumable revenues reached $18.5 million, up 9.5% from the prior year [4] - Service and other revenues amounted to $4.7 million, also up 9.5% year over year [5] Margin and Expenses - Adjusted gross profit decreased by 28.1% to $13 million, but adjusted gross margin expanded by 100 basis points year over year to 33% [6] - Sales, general and administrative expenses rose by 0.7% to $43.7 million [6] - Research and development expenses declined by 46.3% year over year to $25.5 million [6] - Adjusted total operating expenses were $62.4 million, down 31% year over year [6] Financial Position - PacBio ended Q3 2024 with cash, cash equivalents, and investments of $471.1 million, down from $509.8 million at the end of Q2 2024 [8] - The company revised its revenue outlook for 2024, expecting fourth-quarter revenues to be flat to slightly up compared to Q3 2024 [8] - Full-year revenues are anticipated to be lower than the previous estimate of $170 million, with the Zacks Consensus Estimate at $168.1 million [9] Market Performance - Despite mixed results, with earnings beating estimates but revenues missing, shares fell by 14.7% in after-market trading [10] - Year-to-date, PacBio's stock has declined by 75.1%, contrasting with the industry's 6.3% growth and the S&P 500's 24.7% increase [14]

| --- | --- | --- | |-----------------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | PacBio Q3 2024 Earnings | | | | | | | | Presentation | | | | November 7, 2024 Third Quarter 2024 Earnings Call | | | | | | | | | | | | | | | | | | | 1 Statement regarding use of non‐GAAP financial measures PacBio reports non‐GAAP results for basic and diluted net income and loss per share, net income, net loss, gross margins, gross profit and operating expenses in add ...

Pacific Biosciences of California, Inc. (NASDAQ:PACB) Q3 2024 Earnings Conference Call November 7, 2024 4:30 PM ET Company Participants Todd Friedman - Senior Director of Investor Relations Christian Henry - President and Chief Executive Officer Susan Kim - Chief Financial Officer Conference Call Participants Tejas Savant - Morgan Stanley Kyle Nixon - Canaccord Mason Carrico - Stephens Dan Brennan - TD Cowen Jack Meehan - Nephron Research Subbu Nambi - Guggenheim Securities Madeline Mollman - Wolfe Research ...

Pacific Biosciences of California (PACB) reported $39.97 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 28.2%. EPS of -$0.17 for the same period compares to -$0.27 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $41.9 million, representing a surprise of -4.60%. The company delivered an EPS surprise of +15.00%, with the consensus EPS estimate being -$0.20.While investors scrutinize revenue and earnings changes year-over-year and h ...