Illumina, Inc. (ILMN - Free Report) recently announced the acquisition of Edico Genome to strengthen the next-generation sequencing (NGS) platform. Per the company, Edico Genome’s DRAGEN Bio-IT (DRAGEN) platform pairs well with Illumina’s sequencing portfolio and helps in delivering rapid and streamlined output for NGS customers.
Edico Genome is an eminent provider of data analysis acceleration solutions for NGS. Its DRAGEN is built on field programmable gate array (FPGA) technology with the help of some proprietary software algorithms which help deliver results in a timely manner with decreased data footprint.
Per Illumina, Edico Genome has established a strong NGS customer base led by solid adoption of DRAGEN as a standard part of sequencing workflow. We believe this acquisition will help Illumina provide an enhanced data analysis experience to NGS users along with an expanded customer base.
NGS Platform in Focus
Illumina is consistently working on enhancing its NGS platform. Illumina recently introduced a second FDA-regulated and CE-IVD marked NGS system — NextSeq 550Dx. The company has also received product approval for the NextSeq 550Dx instrument from the Ministry of Food and Drug Safety (MFDS) in South Korea.
In April, the company collaborated with Bristol-Myers Squibb Company (BMY - Free Report) in the field of oncology. The alliance will utilize Illumina’s NGS technology to develop and globally commercialize in-vitro diagnostic (IVD) assays in support of Bristol-Myers Squibb’s oncology portfolio.
Illumina also announced a global strategic partnership wih Loxo Oncology to develop and commercialize a multi-gene panel for broad tumor profiling, resulting in a distributable, NGS based companion diagnostic (CDx) with a pan-cancer indication.
According to Markets and Markets, the global next-generation sequencing market is estimated to reach a worth of $12.45 billion by 2022, at a CAGR of 20.5%. This shows that the acquisition is in line with the company’s strategies.
Share Price Performance
Over the past year, Illumina has been outperforming its industry. The company has gained 48% against the industry’s decline of 8.5%.
Zacks Rank & Other Key Picks
Illumina currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the broader medical sector are Intuitive Surgical (ISRG - Free Report) and The Cooper Companies, Inc. (COO - Free Report) . Intuitive Surgical sports a Zacks Rank #1 while Cooper Companies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has a long-term expected earnings growth rate of 12.1%.
Cooper Companies has long-term expected earnings growth rate of 10.8%.
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