Not to be stopped from entering and likely building a leadership position in the “nex-gen sequencing” (NGS) market following a failed attempt at acquiring Illumina, Roche has announced a partnership with Pacific Biosciences (NASDAQ: PACB) to develop diagnostic products based on PacBio’s SMART technology. The potential deal is worth more than $75 million to PacBio in upfront and supply agreement revenue. PacBio shares closed up today at $5.98 (+72.83%).
[protected]The NGS segment bears striking similarities to the PCR market evolution, which continues to be led by Roche. NGS is rapidly making the transition from the research lab into routine clinical diagnostics and as it does, so does the acquisition of small medium and larger companies involved in sequencing. Examples include Thermo Fisher’s (NYSE: TMO) $13.6 billion dollar acquisition of Life Technologies (NASDAQ: LIFE) and Illumina’s (NASDAQ: ILMN) purchase of Helixis and prenatal test maker Verinata Health to name just a few.
The $52 billion dollar global clinical diagnostic market is full of examples of company partnerships that lead to eventual acquisitions as companies deepen their relationships and discover the synergistic benefits of combining.
For more information on the NGS space, competitors, reimbursement and regulatory issues, please contact your Atheneum Partners representative and schedule an individual consult today.[/protected]