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PacBio (PACB) Inks Research Collaboration for Genome Sequencing

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Pacific Biosciences of California (PACB - Free Report) , popularly known as PacBio, entered into a research collaboration with the University of Washington. As a part of the research collaboration, PACB, along with GeneDx (WGS - Free Report) , the leading provider of genomic and clinical insights, will study the capabilities of HiFi long-read whole genome sequencing (“WGS”) in pediatric patients with genetic conditions for better diagnostic rates.

The study — SeqFirst — will use both short and long-read WGS to find out whether some genetic conditions are caused by novel variants that are not accessible via short-read sequencing technologies. The study is a collaboration between GeneDx and Seattle Children’s Hospital, a hub for genomic research and precision medicine. GeneDx will sequence and analyze the genomes of 350 people, including 120 patients from Seattle Children’s Hospital and their biological parents, if available.

Price Performance

Shares of PacBio have risen 46.5% year to date compared with the industry’s growth of 2%. The S&P 500 Index has gained 19% in the same time frame.

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Significance of the Collaboration

The researchers hope to discover new insights into the genetic basis of rare and complex diseases from the SeqFirst study, which is sponsored by GeneDx and partly funded by the Brotman Baty Institute. This institute brings together experts from UW Medicine, Seattle Children’s Hospital and Fred Hutchinson Cancer Center.

The long-read sequencing has the potential to provide new insights into human genomes and discover novel variants that may help understand the causative variation in DNA in patients with certain genetic conditions.

GeneDX will use PacBio’s popular Revio sequencing system to perform long-read WGS sequencing and analysis in the new study. The study aims to find out if the Revio system can improve the diagnosis of rare and complex diseases by providing more accurate, longer and methylation-sensitive reads. The study will share the sequencing data, including the novel variants and their frequencies, with the Consortium of Long Read Sequencing (CoLoRS) database to help advance the scientific knowledge of variant prevalence and classification.

Previous Collaborations

PacBio has been collaborating with leading research hospitals, health-organizations and technology companies in both technology and research fields over the past two years. One of its key collaborations is with Google, a subsidiary of Alphabet (GOOGL - Free Report) , to implement the latter’s deep learning method, DeepConsensus, in Revio. The partnership also provides access to Alphabet’s DeepVariant, potentially helping in improving long-read WGS performance.

PacBio’s collaborations, especially with GOOG, will likely help it in discovering real applications in healthcare to aid critical and complex cases with the use of artificial intelligence.

Notable Developments

Earlier this month, PacBio announced second-quarter 2023 results, wherein there was a robust increase in its overall revenues, including strong revenues from Instrument and Consumables. Solid performances in the Asia-Pacific and Europe, the Middle East and Africa regions were also witnessed.

In June, PacBio announced that the leading provider of clinical diagnostics and genomic services, Bioscientia, in Europe, has adopted its Revio long-read sequencing system. The company also announced a clinical research study with Radboud University Medical Center (Radboudumc) in the same month to explore the causes of rare and genetic diseases.

Zacks Rank & Stock to Consider

PacBio currently carries a Zacks Rank #3 (Hold).

DexCom (DXCM - Free Report) is a better-ranked stock from the same sector, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DexCom has an estimated growth rate of 42.9% over the next five years. The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 28.83%.

DXCM’s shares have lost 2.7% year to date against the industry’s 2% growth.

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