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Illumina (ILMN) Inks Deal to Develop Distributable Test Kits

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Illumina, Inc. (ILMN - Free Report) recently signed a partnership deal with Adaptive Biotechnologies Corporation (ADPT - Free Report) , a commercial stage biotechnology company. The deal will enable clinicians to carry out clinical immunodiagnostic testing that can be conducted in local laboratories. Moreover, the collaboration will boost Illumina’s strong in-vitro diagnostic (IVD) portfolio.

Adaptive Biotechnologies is striving to decode the genetics of the adaptive immune system into clinical products to diagnose and treat diseases.

Also, the collaboration will enable Illumina to improve its foothold in the global IVD market.



Significance of the Collaboration

Per the terms of the partnership, Illumina will develop customized software to support the use of the kits on NextSeq instruments. Also, the company will provide regulatory and related support related to its components as well as the software. It will exclusively license the software to Adaptive Biotechnologies. These test kits will enable hospitals and healthcare providers to use Adaptive Biotechnologies’ clonoSEQ and immunoSEQ Dx assays in their respective laboratories across the United States.

Through this collaboration, Illumina aims to reach out to more people to ensure better access to healthcare. Also, it plans to make clonoSEQ more accessible to patients and include the healthcare providers into the growing genomics ecosystem. The partnership will facilitate Illumina to expand access to genomic-based testing and improve patient outcomes.

A Peek Into Illumina’s IVD Portfolio

Illumina’s next-generation sequencing (NGS) technology offers broader view of the human genome. This helps clinicians to determine and apply relevant genomic information to human health. The company is focused on improving health by tapping the huge potential of the human genome.

Illumina is currently aiming to expand the clinical applications of its NGS platform through products like the MiSeqDx System and the TruSeq Custom Amplicon Kit Dx.

Recent Developments

The company announced the launch of VeriSeq NIPT Solution v2, a CE-IVD, NGS-based approach to noninvasive prenatal testing (NIPT) in June 2019. It is an automated comprehensive solution that enables laboratories to look for a broader array of chromosomal and sub-chromosomal conditions associated with birth defects as well as adverse pregnancy outcomes than the standard NIPT menu.

Industry Prospects

Per a report by Research And Markets, the global IVD market value is anticipated to reach $92.54 billion at a CAGR of 6.6%, for the period spanning from 2018 to 2023. The key factors driving the market is the increasing numbers of diabetic patients, rising incidents of chronic ailments, surging healthcare expenditure and rising elderly population.

Given the current trend, Illumina signed this distribution deal just at the right time.

Price Performance

The company’s shares have plunged 18.3% in the past year compared with the industry’s decline of 27.5%. However, the S&P 500 index inched up 0.9% during the same period.

Zacks Rank & Key Picks

Currently, Illumina carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Capricor Therapeutics, Inc (CAPR - Free Report) and GW Pharmaceuticals PLC .

Capricor, sporting a Zacks Rank #1 (Strong Buy), has a projected third-quarter 2019 earnings growth rate of 28.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals estimates third-quarter earnings growth rate to be 72.8%. It currently flaunts a Zacks Rank #1.

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