Biotech ETFs In Focus as Illumina Soars 23% — Is the Genomics Winter Over? - ARK Genomic Revolution ETF (BATS:ARKG), iShares Biotechnology ETF (NASDAQ:IBB)

Core Insights - Illumina Inc experienced a significant stock surge of over 23% after exceeding third-quarter guidance and narrowing its full-year revenue decline forecast, providing optimism for biotech investors [1][2] Company Performance - Illumina reported third-quarter revenue of $1.08 billion, remaining flat year-over-year and surpassing expectations. However, net income fell sharply to $150 million from $705 million [2] - The company's guidance for fiscal 2025 indicates a revenue decline of only 0.5% to 1.5%, an improvement from the previous forecast of up to a 2.5% decline [2] - CEO Jacob Thaysen highlighted a return to growth outside of China, with revenue growth accelerating in the clinical segment, which is the largest market for the company [2] ETF Market Impact - The rally in Illumina's stock positively impacted the ARK Genomic Revolution ETF (ARKG), which rose approximately 4% this week, outperforming broader biotech benchmarks [3] - Other biotech ETFs, such as the iShares Biotechnology ETF (IBB) and the SPDR S&P Biotech ETF (XBI), also saw slight increases as sentiment towards the sector improved [3] Geopolitical Influence - Illumina's 2% year-over-year growth outside of China reflects how geopolitical changes are reshaping the biotech landscape, particularly with the loss of about $300 million in annual sales due to China's ban on Illumina's DNA sequencers [5] - Investors are increasingly favoring ETFs with a stronger U.S. focus and reduced dependence on Chinese revenue streams, as Illumina's latest earnings provide a much-needed boost to biotech ETFs [5]