Stock Update (NASDAQ:PACB): Why Pacific Biosciences of California Shares Are Diving 40%?

Investors are running away drom Pacific BioPacific Biosciences of California (NASDAQ:PACB), after the company announced that Roche has terminated their collaboration agreement, whereby Roche had exclusive distribution rights of the Sequel into the clinical market.

Pacific Biosciences shares reacted to the news, falling nearly 40% in Thursday’s trading session,

“The Sequel System was developed during the period of our collaboration with Roche and has achieved all of the milestones set forth in our agreement,” said Dr. Michael W. Hunkapiller, Chief Executive Officer of Pacific Biosciences. “We are very proud of the achievements and performance of the Sequel System, which were showcased at the recent ASHG annual meeting and PacBio Workshop in Vancouver.”

“The clinical research and sequencing market and regulatory environment have evolved during the three years since we entered into this agreement with Roche. While we are disappointed with Roche’s decision to terminate the agreement, we are already familiar with this market and Roche’s decision does not significantly change our near-term plans for expanding our business to address this market,” continued Dr. Hunkapiller. “The long-term goal of this agreement was for Roche to pursue the in vitro diagnostic market with regulated, assay-specific tests based on the Sequel platform and, to that end, Roche was focused on developing certain targeted assays and additional software features on the Sequel System.”

“We are prepared to immediately pursue opportunities in the clinical research and sequencing market which do not require the supply of assay-specific kits and we have already seen interest from customers in this space, which we believe currently represents the majority of this market. The quality framework we have developed while working with Roche and our existing ISO 13485 and ISO 9001 certifications position us well to address this market,” concluded Dr. Hunkapiller. (Original Source)

On the ratings front, PACB stock has been the subject of a number of recent research reports. In a report issued on November 3, Cantor Fitzgerald analyst Bryan Brokmeier reiterated a Buy rating on PACB, with a price target of $15, which represents a potential upside of 203% from where the stock is currently trading. Separately, on November 2, J.P. Morgan’s Tycho Peterson reiterated a Hold rating on the stock and has a price target of $12.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Bryan Brokmeier and Tycho Peterson have a yearly average loss of 3.4% and a return of 11.9% respectively. Brokmeier has a success rate of 40% and is ranked #3783 out of 4274 analysts, while Peterson has a success rate of 60% and is ranked #374.

Pacific Biosciences of California, Inc. develops, manufactures and markets sequencing systems to help scientists resolve genetically complex problems. The company has developed a technology to study the synthesis and regulation of DNA combining recent advances in nanofabrication, biochemistry, molecular biology, surface chemistry, and optics. Its initial focus is on DNA sequencing market where a third generation sequencing platform using proprietary SMRT technology, the PacBio RS. The PacBio RS a third generation sequencing instrument that provides real-time information at the single molecule level which includes instrument platform that uses its proprietary consumables, including its SMRT Cells and reagent kits, providing a complete solution to the customer.


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