Recently, Illumina Inc. (ILMN - Free Report) launched the latest reagent kits for its industry leading benchtop sequencer MiSeq. This underlines the company’s emphasis on continued innovation to enhance performance and value of its sequencing platforms.
As per management, the newest reagent kits offer unique MiSeq system enhancements in order to provide highest data quality to clinicians. Moreover, the enhancements will expand research applications in the field of cancer, genetic disease, agriculture, microbiology and forensics. This appears to be a significant upside for Illumina as these markets represent lucrative revenue opportunities.
Additionally, the affirmative response from the very first customer of Illumina’s new MiSeq kits - Institute for Human Genetics, Medical University of Graz in Austria is encouraging. We believe that positive feedback from beta users should support uptake of the new kits.
We are upbeat about the launch of the new reagent kits as it is likely to bolster revenues from MiSeq systems for Illumina. This should expand the installed base for the system and thereby boost the sequencing consumables business for the company.
Illumina is well positioned to maintain its leadership in the expanding high-end genetic research market. We believe the company will continue to be a key player in driving the development of research tools into clinical/diagnostic applications. With more emphasis on the new line of products and global distribution platform, Illumina expects to sustain the growth momentum going forward.
Based on the recent impressive positive earnings surprise and the bullish estimate revision trend, the stock carries a Zacks Rank #2 (Buy). Other stocks that warrant a look are Actelion Ltd. , Affymetrix Inc. and Gilead Sciences Inc. (GILD - Free Report) . These stocks carry Zacks Rank #1 (Strong Buy).