Enhanced PureTarget portfolio replaces the need for multiple tests with single scalable solution for inherited disease screeningMENLO PARK, Calif., Sept. 22, 2025 (GLOBE NEWSWIRE) -- PacBio (NASDAQ: PACB), a leading developer of high-quality, highly accurate sequencing solutions, today announced its entry into the high-throughput carrier screening market with a significantly expanded and enhanced suite of PureTarget products. The updated solutions leverage PacBio’s highly accurate HiFi sequencing technology ...

Core Insights - PacBio has announced a partnership with EpiCypher to integrate EpiCypher's CUTANA Hia5 enzyme into its Fiber-seq assays, enhancing the ability to study chromatin biology at single-molecule resolution [1][3] - The collaboration aims to advance research in gene regulation, particularly in the context of rare diseases and cancer, by providing a comprehensive view of genetic and epigenetic features in a single assay [2][3] Company Overview - PacBio is a leading life science technology company focused on developing advanced sequencing solutions to address complex genetic problems across various research applications, including oncology and infectious diseases [4] - The company’s HiFi long-read sequencing technology is designed to provide high-quality data for a wide range of genomic studies [4] Product Details - The CUTANA Hia5 enzyme is now commercially available in 8 and 24 reaction formats, along with a supported Fiber-seq protocol, enabling researchers to generate insights into gene regulation [3] - Fiber-seq is an advanced multi-omic whole genome sequencing assay that measures chromatin accessibility, DNA methylation, and DNA variation simultaneously, offering a more integrated approach compared to traditional methods [2][3] Research Implications - The partnership is expected to facilitate the interrogation of complex genomic regions that are difficult to analyze with short-read approaches, potentially leading to breakthroughs in understanding rare diseases [7] - By consolidating multiple assays into a single workflow, researchers can save time and resources while obtaining richer data, which is crucial for advancing biological research [7]

Financial Data and Key Metrics Changes - The company reported revenue of $39.8 million for Q2 2025, representing a 7% sequential increase and a 10% year-over-year growth compared to Q2 2024 [6][23] - Non-GAAP gross margin was 38.3%, exceeding expectations due to a favorable product mix, particularly from consumables [7][26] - The company ended the quarter with approximately $315 million in cash investments, reflecting cost discipline and lower-than-expected operating expenses [7][28] Business Line Data and Key Metrics Changes - Instrument revenue was $14.2 million, down 4% year-over-year due to funding constraints affecting higher CapEx purchases [7][24] - Consumables revenue totaled $18.9 million, up 11% year-over-year, driven by strong demand and utilization [7][25] - Service and other revenue grew approximately 57% to $6.7 million, attributed to increased Revio service contract revenue and a large population sequencing program [25] Market Data and Key Metrics Changes - Revenue from the Americas decreased by 15% to $17.7 million, impacted by government funding headwinds [26] - Asia Pacific revenue increased by 53% to $12.6 million, driven by increased REVIO and VEGA placements [26] - EMEA revenue rose by 35% to $9.5 million, supported by strong REVIO placements in clinical settings [26] Company Strategy and Development Direction - The company aims to increase the adoption of its long-read sequencing platforms and drive towards positive cash flows [6] - The introduction of Spark chemistry is expected to enhance throughput and reduce costs, contributing to increased HiFi adoption [8][33] - The company is focused on expanding its clinical footprint and has made significant progress in clinical sequencing applications [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macroeconomic environment remains challenging, international growth is strong, particularly in EMEA and APAC [10][41] - The company is maintaining its full-year revenue guidance, expecting growth in consumables revenue to offset declines in instrument revenue [10][29] - Management expressed optimism about the adoption of HiFi sequencing technology in clinical workflows, despite uncertainties in the U.S. academic funding landscape [11][40] Other Important Information - The company is developing a multi-use SmartCell capability to reduce costs per genome and improve gross margins [22][34] - The company has joined the 1,000 Genomes Long Read Project, contributing to large-scale population genomics initiatives [16] Q&A Session Summary Question: Impact of macro situation on instruments and consumables - Management acknowledged that the tough macro environment impacts instrument sales, particularly among academic customers, but consumable utilization remains healthy [37][39] Question: Dynamics of Vega instrument revenue - Management indicated that many new customers are transitioning from outsourcing to insourcing, leading to a more balanced supply and demand in the market [43][45] Question: Clinical customer adoption and consumables contribution - Currently, approximately 15% of consumables revenue comes from clinical customers, with expectations for continued growth as these customers validate their assays [50][51] Question: Near-term order activity for Vega and Revio - Management noted a significant number of near-term opportunities for Vega, which could translate into orders depending on NIH funding resolution [76][80] Question: Pricing strategy in light of tariffs - The company has not adjusted pricing for tariffs and has not seen significant impacts from tariffs thus far [92][93] Question: Future growth opportunities in EMEA - Management highlighted that growth in Europe is driven by various initiatives beyond just large-scale projects, with significant opportunities in rare disease programs [97][99]

Financial Performance - Q2 2025 product and service revenue reached $39.8 million, a 7% sequential increase and a 10% increase compared to Q2 2024[12] - Consumable revenue increased by 11% year-over-year, with Revio pull-through in the low-to-mid $200,000s per system[12] - Instrument revenue increased sequentially but decreased by 4% year-over-year due to funding constraints[12] - Non-GAAP gross margin was approximately 38% in Q2 2025, compared to 37% in Q2 2024[45, 47] - Q2 2025 non-GAAP operating expenses were $58.1 million, an 18% decrease compared to Q2 2024[47] - Cash burn was approximately $28 million in Q2 2025, with expectations for improvement in the second half of the year[46] System Placements - 15 Revio systems were shipped in Q2 2025, with 60% going to new customers and one-third to Dx/LDT and hospital labs[12] - 38 Vega systems were shipped, with nearly 60% going to new customers[13] - Cumulative Revio shipments reached 297, and Vega shipments reached 73[14] Guidance - Full-year revenue guidance is maintained at the midpoint, narrowing the range to $155 million to $165 million, representing 1% to 7% growth over 2024[21, 22] - The company expects mid-teens growth in consumables revenue and a mid-teens decline in instrument revenue[22]

Core Insights - PacBio reported a revenue increase in Q2 2025, achieving $39.8 million compared to $36.0 million in Q2 2024, marking a year-over-year growth [1] - The company has successfully reduced operating expenses and cash burn while maintaining revenue growth [6] Financial Performance - Instrument revenue for Q2 2025 was $14.2 million, slightly down from $14.7 million in Q2 2024 [1] - Consumable revenue increased to $18.9 million from $17.0 million year-over-year [1] - Service and other revenue rose to $6.7 million from $4.3 million in the same period last year [1] - GAAP gross profit for Q2 2025 was $14.7 million, up from $5.9 million in Q2 2024, with a non-GAAP gross profit of $15.2 million compared to $13.2 million [2] - Non-GAAP gross margin improved to 38% in Q2 2025 from 37% in Q2 2024 [2] Operating Expenses and Losses - GAAP operating expenses decreased to $59.5 million in Q2 2025 from $181.8 million in Q2 2024 [3] - Non-GAAP operating expenses also fell to $58.1 million from $71.0 million year-over-year [3] - GAAP net loss for Q2 2025 was $41.9 million, significantly reduced from $173.3 million in Q2 2024 [4] - Non-GAAP net loss for the same period was $40.0 million, down from $55.2 million [4] - GAAP net loss per share improved to $0.14 from $0.64 year-over-year [4] Product and Market Developments - The company sold 15 Revio™ systems in Q2 2025, down from 24 in Q2 2024, while it sold 38 Vega™ systems, which were not sold in the previous year [1] - Annualized Revio pull-through per system was approximately $219,000, down from $251,000 [1] - PacBio has expanded its distribution in China through a new agreement with Haorui Gene, enhancing access to clinical lab networks [6] - The company contributed to the 1000 Genomes Long Read Project, focusing on isoform-level transcriptome sequencing [6] Cash and Investments - As of June 30, 2025, PacBio had cash, cash equivalents, and investments totaling $314.7 million, down from $509.8 million a year earlier [1]

Core Insights - PacBio has developed a comprehensive genomic variant dataset called the Platinum Pedigree, which significantly enhances variant classification using AI tools, particularly Google's DeepVariant, achieving a 34% reduction in erroneous variant calls [1][5][6] Group 1: Dataset Development - The Platinum Pedigree dataset is the most extensive family-based variant dataset, characterizing both simple and complex genetic variations [1][2] - It was created through deep sequencing of a 28-member multi-generational family, cataloging over 37 Mb of genetic variation, including single nucleotide and large structural variants [3][4] - The dataset includes the first large pedigree-validated tandem repeat and structural variant truth sets, extending benchmark regions to 2.77 Gb [4] Group 2: Impact on AI and Genomics - The improved benchmarks allow for better evaluation of variant calling pipelines and accelerate the development of methods that address complex genomic regions important for human health [5][6] - The Platinum Pedigree benchmark is already being utilized by scientists to develop new sequence analysis tools and validate clinical sequencing workflows [6] Group 3: Publication and Collaboration - The study detailing the Platinum Pedigree was published in Nature Methods on August 4, 2025, and involved collaboration between PacBio, the University of Washington, and the University of Utah, with support from NIH and Howard Hughes Medical Institute [8]

Core Insights - The study published the first Arab human pangenome, significantly advancing global genomic equity and highlighting the importance of population-specific genomic data [1][3] - The research identified millions of new variants and over 111 million base pairs of previously unsequenced DNA, enhancing the understanding of genetic diversity in Arab populations [2][4] Company Contributions - PacBio's HiFi long-read sequencing technology was instrumental in assembling high-resolution genomes from diverse Arab populations, showcasing the company's leadership in genomic research [1][3][7] - The Arab pangenome, or UAE Pangenome Reference (UPR), improves mapping rates and variant recall, providing a valuable tool for precision medicine in underrepresented populations [5][6] Implications for Research - The findings from the study have significant implications for understanding disease risk, diagnosing rare conditions, and improving representation in global health research [4][6] - The UPR is freely available to support ongoing research into genetic disorders and population health, potentially increasing variant detection accuracy in Arab genomes [6]

Core Insights - PacBio has joined the 1000 Genomes Long Read Sequencing Project to contribute long-read transcriptome data, enhancing the understanding of human genomics [1][2][3] - The collaboration aims to provide new transcript-level insights from approximately 1,000 samples, supporting accurate gene expression interpretation and regulatory element analysis [2][3] - The project emphasizes transparency and open data, with all sequencing data and analysis pipelines to be publicly available [4][5] Company Contributions - PacBio will utilize its Kinnex RNA kits and Revio sequencing platform to generate full-length isoform sequencing data, with each sample expected to yield around 10 million full-length transcript reads [3] - The collaboration involves key laboratories, including the University of Washington and Johns Hopkins University, to deliver a high-quality RNA resource and scalable bioinformatics pipelines [3][4] Industry Impact - The addition of isoform sequencing to the 1000 Genomes Project is expected to enrich the foundational genomic resource, aiding in diverse applications from basic biology to rare disease diagnostics [3] - The initiative aims to advance equity, access, and innovation in human genetics research, contributing to the fast-growing field of long-read transcriptomics [5]

Core Insights - PacBio has appointed Haorui Gene as an official distributor in China to enhance access to its HiFi long-read sequencing technology, particularly in transfusion medicine and hematology [1][3][5] - Haorui Gene has established itself as a significant player in blood typing genomics since its founding in 2020, deploying multiple sequencing systems to improve HLA typing and blood group genotyping [2][5] - The partnership aims to make PacBio's HiFi sequencing the preferred method in blood genomics, emphasizing its accuracy in critical areas for transfusion safety and donor matching [3][5][6] Company Overview - PacBio is a leading life science technology company focused on high-quality sequencing solutions, including HiFi long-read and SBB short-read sequencing technologies [7] - Haorui Gene is recognized for its innovative contributions to clinical long-read sequencing and precision medicine through advanced genomic technologies [9] Partnership Details - Under the agreement, Haorui Gene will distribute PacBio's Vega platform across China, providing comprehensive support for clinical laboratories and blood centers [4][5] - The collaboration is positioned to address the growing demand for high-precision sequencing in clinical genomics, particularly in hematology [6]

Core Insights - 10x Genomics reported revenue of $154.88 million for the quarter ended March 2025, reflecting a year-over-year increase of 9.8% and exceeding the Zacks Consensus Estimate of $133.25 million by 16.24% [1] - The company posted an EPS of -$0.36, an improvement from -$0.50 in the same quarter last year, with a surprise of 20.00% compared to the consensus estimate of -$0.45 [1] Revenue Breakdown - Consumables revenue reached $115.36 million, slightly below the average estimate of $115.85 million, marking a year-over-year increase of 4.6% [4] - Instruments revenue was reported at $14.82 million, significantly lower than the average estimate of $17.30 million, representing a year-over-year decline of 41.8% [4] - Chromium instruments generated $5.91 million, compared to the estimated $6.46 million [4] - Services revenue was $7.65 million, exceeding the average estimate of $6.30 million, with a year-over-year increase of 46.7% [4] - Consumables from Chromium totaled $84.11 million, surpassing the average estimate of $82.93 million [4] - Spatial consumables revenue was $31.25 million, slightly below the average estimate of $32.91 million [4] - Spatial instruments revenue was $8.90 million, compared to the estimated $10.85 million [4] Stock Performance - Over the past month, shares of 10x Genomics have declined by 4.2%, while the Zacks S&P 500 composite increased by 11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]