A LOTM, Trade-half/Own-half Idea
Chart from StockCharts.com and Stats below from Finviz.com
Link to Q2 Earnings report on Co website:
Here’s a summary of recent developments:
- Strong Q2 2025 Financial Results: PacBio reported revenue exceeding expectations in Q2 2025, with sales up 10.4% year-on-year to $39.77 million. This was attributed to increased adoption of their HiFi sequencing platforms, such as the Revio and Vega systems.
- Expanding HiFi Sequencing Portfolio:
- Revio System Enhancement: PacBio launched SPRQ chemistry for the Revio system, enabling a 4x reduction in DNA input required for sequencing, making HiFi long-read human genomes achievable for less than $500.
- Introducing the Vega System: PacBio unveiled the Vega system, a benchtop long-read sequencing platform designed to make HiFi sequencing more accessible and affordable to a broader range of researchers.
- Clinical Market Expansion:
- Berry Genomics Collaboration: PacBio has delivered its first Vega systems to Berry Genomics, an early access partner, to develop long-read sequencing solutions for carrier, prenatal, and newborn screening in China and other markets.
- Expanded Distribution in China: PacBio partnered with Haorui Gene, a leader in blood typing genomics, to expand the distribution of its HiFi sequencing technology into China’s clinical laboratory networks, particularly for transfusion medicine and hematology.
- Research and Innovation:
- Platinum Pedigree Benchmark: PacBio’s HiFi sequencing technology was used to develop the Platinum Pedigree benchmark, a new standard for characterizing variation in the human genome that improves training for AI models.
- Arab Human Pangenome: PacBio’s HiFi sequencing played a key role in sequencing the first Arab human pangenome, providing valuable insights into the genetic diversity of Middle Eastern populations.
- 1000 Genomes Long Read Project: PacBio joined the 1000 Genomes Long Read Project to contribute isoform-level transcriptome sequencing data using its Kinnex RNA kit and Revio system.
- Operational Efficiency and Financial Strength: PacBio has been actively focusing on improving its operational efficiency and reducing costs. They implemented plans to reduce annualized operating expenses and are working towards achieving cash flow positivity by 2027. These developments demonstrate PacBio’s ongoing commitment to advancing sequencing technologies, expanding its market reach, and supporting scientific research and clinical applications.
Excerp from a Seeking Alpha Blog dated July 23, 2025:
PacBio is known for its long-read devices and for a long history of attempting to scale a business out of that technology. However, its biggest revenue driver these days isn’t even their systems – it’s the razor blades, I’m talking reagents, SMRT Cells, kits… basically consumables. In Q1 2025, they made around $20.1M from consumables alone, or about 26% more than last year and a record quarter for that segment. Those consumables now account for over half their revenue, 54%, up from 41% a year ago.
So why focus on this? Once a lab has a Revio, they’re pretty much locked into ordering consumables. You literally can’t run experiments without them. And here’s the thing – those consumables have way better margins than the hardware. So even if instrument sales slow, consumables will keep flowing. I believe that a shift in the company’s investment case will come from investors switching focus from devices to consumables.
About PACB:
Pacific Biosciences of California, Inc. designs, develops, and manufactures sequencing solution to resolve genetically complex problems. The company provides sequencing systems; consumable products, including single molecule real-time (SMRT) technology; long-read sequencing; and various reagent kits designed for specific workflow, such as preparation kit to convert DNA into SMRTbell double-stranded DNA library formats, including molecular biology reagents, such as ligase, buffers, and exonucleases. It also offers binding kits, such as modified DNA polymerase used to bind SMRTbell libraries to the polymerase in preparation for sequencing; and sequencing kits comprise reagents required for on-instrument, real-time sequencing, including the phospholinked nucleotides. In addition, the company provides Revio, Vega, Sequel, Sequel II, and Sequel IIe instruments which conduct, monitor, and analyze single-molecule biochemical reactions in real time; SBB short-read sequencing; onso instrument conducts, monitors, and analyzes SBB biochemical reactions; and SBB consumable, including flow cells, clustering, and sequencing reagent kits. It serves academic and governmental research institutions; commercial testing and service laboratories; genome centers; public health labs, hospitals and clinical research institutes, and contract research organizations; pharmaceutical companies; and agricultural companies. The company markets its products through a sales force and distribution partners in Australia, certain parts of Asia, Europe, the Middle East, Africa, Central America, and South America. The company was formerly known as Nanofluidics, Inc. and changed its name to Pacific Biosciences of California, Inc. in 2005. Pacific Biosciences of California, Inc. was incorporated in 2000 and is headquartered in Menlo Park, California
From TipRanks through eTrade
Historical Monthly Chart of PACB from Finviz.com
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