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PacBio (PACB) Supports SickKids With Sequencing Technology

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Pacific Biosciences of California, Inc. (PACB - Free Report) , also popularly known as PacBio, recently announced that it will be provide support to The Hospital for Sick Children (“SickKids”) in Toronto, Canada. The company will help SickKids in utilizing HiFi whole genome sequencing (HiFi WGS) to potentially detect genetic variants that might be related to medical and developmental conditions. Notably, the samples that will be examined using HiFi WGS were sequenced utilizing short-read DNA sequencing technology in the past, without the detection of a disease-causing variant.

Through the usage of HiFi WGS, SickKids will be able to analyze samples from research participants, highly suspected to have a genetic condition but did not receive a diagnosis despite prior genetic testing. The team at SickKids will inspect whether HiFi WGS can identify potential genetic causes for a range of conditions, such as autism spectrum disorder and congenital diseases.

This announcement is likely to provide a boost to PacBio’s Sequel system.

More on the News

Although it is known that more than 70% of rare disease, autism and intellectual disability have genetic causes, above 50% lack an identified causative genetic alteration despite the utilization of microarrays, whole-exome or short-read whole-genome sequencing (srWGS).

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Per management at PacBio, the company is optimistic about aiding the SickKids team in getting the answers that they have been seeking as the technology used by PacBio has helped genetic disease researchers decode mysteries in the past where other technologies failed.

Market Prospects

Per a report by Grand View Research, the global genomics market was valued at $20.1 billion in 2020 and is anticipated to witness a CAGR of 15.4% from 2021 to 2028. Hence, this announcement is a well-timed one for PacBio.

Notable Developments

In February, PacBio collaborated with KK Women’s and Children’s Hospital to leverage the former’s technology to understand the genetic causes of neurodevelopmental disorders.

In January, the company partnered with Hamilton Bonaduz AG to offer a walk-away automation solution for High Molecular Weight (HMW) DNA extraction for their customers leveraging highly differentiated Circulomics sample prep products that enable genomic workflows.

Again, in the same month, PacBio announced collaboration with Berry Genomics to provide PacBio’s long read sequencing technology to the Chinese clinical market.

Price Performance

Shares of this Zacks Rank #4 (Sell) company have declined 61% in the past year, against the industry’s growth of 0.4%.

Stocks to Consider

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and McKesson Corporation (MCK - Free Report) .

AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20%. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 8.8% compares favorably with the industry’s 0.3%.

Henry Schein beat earnings estimates in each of the trailing four quarters, the average surprise being 25.5%. The company currently carries a Zacks Rank #1.

Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.6% compares favorably with the industry’s 4.1%.

McKesson surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20.6%. The company currently carries a Zacks Rank #2 (Buy).

McKesson’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 8.8% compares favorably with the industry’s 4.1%.

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