Back to top

Image: Bigstock

Illumina Inks Deal With ArcherDX to Deliver NGS-Based IVD Kits

Read MoreHide Full Article

Illumina, Inc. (ILMN - Free Report) recently inked a non-exclusive partnership deal with ArcherDX, Inc., a growth-stage molecular diagnostics company. Both companies aim at developing in-vitro diagnostic (IVD) tests for ArcherDX's portfolio of next-generation sequencing (NGS)-based companion diagnostics.

However, financial terms of the deal have been kept under wraps.

Deal in Detail

Per the agreement, ArcherDX will develop IVD tests that will be performed on Illumina's NextSeq 550Dx System. In this regard, ArcherDX will be responsible for obtaining necessary regulatory approvals pertaining to each IVD kit and their commercialization following the regulatory nod.

These newly-developed IVD tests are expected to provide options for providers and patients globally. Per the press release, Illumina’s large install base and advanced sequencing systems will accelerate easy access to high-quality genomic testing by developing distributable diagnostic assays. This can be used to identify targeted therapy options and monitor the recurrence of disease in case of a wide variety of cancers.

Earlier in 2016, Illumina entered into a similar agreement with ArcherDX for the MiSeq Dx System.

Industry Prospects

Going by a MarketsAndMarkets report, the global IVD market is estimated to reach $87.93 billion by 2023 from $68.12 billion in 2018, witnessing a CAGR of 5.2%. The key factors driving the market are increasing demand for early and accurate disease diagnosis, and the growing adoption of fully-automated instruments plus automated laboratories.

Given the current trend and the hugely untapped potential in the NGS-based IVD market, Illumina signed this contract just at the right time.

A Peek Into Illumina’s IVD Portfolio

The company’s robust diagnostic NGS product portfolio consists of MiSeq Dx and NextSeq 550Dx platforms. The IVD test kits will be used in consonance with these platforms.

Price Performance

Shares of the company have dipped 3.3% in the past year compared with the industry’s decline of 6.5%.

Zacks Rank & Stocks Worth a Look

Illumina currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , NuVasive, Inc and ResMed (RMD - Free Report) . While ResMed sports a Zacks Rank #1 (Strong Buy), the other two carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Haemonetics has a projected long-term earnings growth rate of 13.5%.

NuVasive has an expected long-term earnings growth rate of 10.9%.

ResMed has a long-term earnings growth rate of 12.9%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Illumina, Inc. (ILMN) - free report >>

ResMed Inc. (RMD) - free report >>

Haemonetics Corporation (HAE) - free report >>

Published in