Meme sequencing

10 February 2021 By Robert Cyran Follow @rob_cyran

Pacific Biosciences has lagged goliath Illumina in selling DNA reading machines. A $900 mln investment from Masayoshi Son’s SoftBank Group may give it a leg up. But competition will accelerate deflation in the price of gene sequencing, making users the biggest winners.

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Pacific Biosciences of California said on Feb. 10 that SB Management, a subsidiary of SoftBank Group, will invest $900 million in the company through a convertible note. The genetic-sequencing company will use the money for growth.

The notes will have a conversion price of $43.50, a 10% premium to the company’s share price on Feb. 9. The maturity date is Feb. 15, 2028 unless redeemed or converted, and they pay interest at a rate of 1.5% annually.

Pacific Biosciences stock rose over 20% in morning trading following the news, giving the firm a market capitalization of around $9 billion.

In January 2020, Illumina and Pacific Biosciences terminated a $1.2 billion merger agreement following objections from antitrust regulators in the United States and the UK.

SoftBank on Feb. 8 reported earnings for the nine months to Dec. 31.

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Pacific Biosciences stock rose over 20% in morning trading following the news, giving the firm a market capitalization of around $9 billion.

In January 2020, Illumina and Pacific Biosciences terminated a $1.2 billion merger agreement following objections from antitrust regulators in the United States and the UK.

SoftBank on Feb. 8 reported earnings for the nine months to Dec. 31.

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