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Pacific Biosciences Offers Insights on Aedes aegypti Genome

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Pacific Biosciences of California Inc. (PACB - Free Report) announced that it has published exclusive insights on the highest quality genome assembly for the Aedes aegypti mosquito in a journal called Nature. While the process was initiated by researchers of the Rockefeller University and other institutions, the sequencing was performed by Pacific Biosciences at its CA-based headquarters.

Notably, the company used its flagship Single Molecule, Real-Time (SMRT) technology for this purpose.

Per management, analysis of the Aedes aegypti mosquito genome is likely to help scientists reduce the infectious diseases it spreads, including Zika, dengue, chikungunya and yellow fever. This will help Pacific Biosciences in exploring the genomic basis related to insecticide resistance, disease transmission, blood-feeding host preference, and development of novel repellents.

Pacific Biosciences carries a Zacks Rank #3 (Hold).

SMRT Technology

In general, SMRT sequencing is a single molecule DNA sequencing method in the genomics space.

Coming to Pacific Biosciences’ SMRT, it should be noted that this method has some inherent advantages over first and second-generation sequencing techniques. This SMRT also allows large-scale study of methylation and epigenetics. These advantages are helping Pacific Biosciences in attracting customers, which will eventually drive top-line growth.

In a bid to support routine structural variant identification in low-coverage, whole genome SMRT Sequencing data, Pacific Biosciences recently released an analysis software — SMRT Link Structural Variant Calling.

Price Performance

In the past year, shares of Pacific Biosciences have soared 154% compared with the industry’s 12.7% rally and the S&P 500 index’s 5.1% gain.

Wrapping Up

Genomics has always received a warm response from the MedTech investment space. Per MarketsandMarkets, the global Genomics market, which was worth $13.45 billion in 2016, is expected to reach $23.88 billion by 2022 at a CAGR of 10.2%. Given the solid trends, Pacific Biosciences always enjoyed a competitive edge in the genomics market, courtesy of its SMRT technology.

However, one of Pacific Biosciences’ biggest rival — Illumina (ILMN - Free Report) — recently announced that it is acquiring the former for $8 per Pacific Biosciences share (in an all-cash transaction). Per management, the total value of the deal is approximately $1.2 billion. The agreement is expected to close by mid-2019. Illumina has a Zacks Rank #2 (Buy) and a long-term expected earnings growth rate of 23.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Pacific Biosciences’ significant developments backed by its Sequel SMRT technology and Illumina’s infrastructure are expected to expand biological discovery and clinical insight in the genomics market. For investors’ notice, shares of Pacific Biosciences have skyrocketed 69% since the news release.

Analysts believe that consolidations like this are likely to reduce cutthroat competition in the DNA sequencing market. However, let’s not forget the presence of other bigwigs like Thermo Fisher Scientific Inc. (TMO - Free Report) and QIAGEN N.V. (QGEN - Free Report) . Both the companies are currently offer strong portfolios of molecular technologies for human healthcare.

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