Standard BioTools Completes Sale of SomaLogic to Illumina
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: Newsfilter
- Significant Transaction Value: Standard BioTools completed the sale of SomaLogic to Illumina for $350 million in cash, with an additional potential earnout of up to $75 million, bringing the total transaction value to $425 million, marking a major milestone in the company's strategic transformation.
- Strong Cash Reserves: Following the transaction, Standard BioTools estimates a cash and cash equivalents balance of approximately $550 million, providing robust financial resources for future M&A activities, thereby accelerating growth in a competitive industry landscape.
- Profitability Outlook: The company is on track to achieve positive adjusted EBITDA by 2026, reflecting improved operational efficiency and indicating a strong recovery capability in market competition, which enhances investor confidence.
- Long-Term Revenue Potential: Standard BioTools will receive a 2% royalty on net revenues from SOMAmer-based products for the next ten years, creating a stable revenue stream that supports ongoing innovation and market expansion strategies.
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Analyst Views on ILMN
Wall Street analysts forecast ILMN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ILMN is 124.12 USD with a low forecast of 40.50 USD and a high forecast of 195.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
4 Buy
6 Hold
3 Sell
Hold
Current: 149.690
Low
40.50
Averages
124.12
High
195.00
Current: 149.690
Low
40.50
Averages
124.12
High
195.00
About ILMN
Illumina, Inc. is engaged in providing sequencing-and array-based solutions for genetic and genomic analysis. Its products and services serve customers in a range of markets, enabling the adoption of genomic solutions in research and clinical settings. Its DNA sequencing technology is based on its reversible terminator-based sequencing chemistry, referred to as sequencing by synthesis biochemistry. Its BeadArray technology combines microscopic beads and a substrate in a manufacturing process to produce arrays that can perform many assays simultaneously. Its sequencing applications include whole-genome sequencing kits, which sequence entire genomes of any size and complexity, and targeted resequencing kits, which can sequence exomes, specific genes, RNA or other genomic regions of interest. Its customers include genomic research centers, academic institutions, government laboratories, hospitals, pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Illumina Acquires SomaLogic to Enhance Leadership in Proteomics
- Acquisition Completed: Illumina has finalized its acquisition of SomaLogic for $350 million, which includes up to $75 million in performance-based milestones, aimed at enhancing drug discovery speed and improving healthcare outcomes through the integration of SomaLogic's proteomics technology.
- Technological Integration Benefits: This acquisition combines SomaScan with Illumina's NGS ecosystem, DRAGEN software, and multiomics platform, enabling customers to flexibly generate rich multiomic datasets, thereby accelerating the understanding of complex biology.
- Market Expansion Potential: Illumina strengthens its competitive position in the rapidly growing proteomics market through this acquisition, which is expected to attract more customers to its innovative products and services, further driving company growth.
- Commitment to Ongoing Support: Illumina pledges to continue supporting existing customers and partners during the integration of SomaLogic's products, ensuring continuity of products and services to maintain customer satisfaction and market share.
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Illumina Completes $425M Acquisition of SomaLogic's Proteomics Technology
- Acquisition Overview: Illumina has completed its acquisition of proteomics technology company SomaLogic for up to $425 million, with $350 million paid upfront and an additional $75 million contingent on milestones and royalties, reflecting Illumina's commitment to the proteomics sector.
- Technological Integration Benefits: SomaLogic's offerings provide deep insights into protein function, interactions, and modifications, which will help accelerate the understanding of complex biology and human health, thereby enhancing Illumina's competitive edge in the biotechnology field.
- Market Outlook: This acquisition not only strengthens Illumina's product portfolio but also has the potential to drive innovation in precision medicine and biomarker development, further solidifying its leadership position in the genomics market.
- Strategic Implications: By integrating SomaLogic's technology, Illumina can expand its influence in biomedical research and clinical applications, which is expected to provide robust support for the company's future growth and profitability.
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