Illumin of the company for genetic sequencing (Announcement) had a harsh for several years. He fought activist investors, faced the Federal Commerce Commission and, recently, agreed to A settlement of $ 9.8 million with the Ministry of Justice By violating computer security.
To add to the pile: Sanctions in China And the Trump administration, which reduces the funding of the National Institutes of Health (NIH), where the company relies heavily on clinical research.
The numbers do not lie. The action has dropped by more than 21% last year and sank more than 11% in trading after Thursday, after the company announced a miss for the second quarter. The company reported revenue of $ 1.06 billion over expected revenues of $ 1.05 billion. Adjusted earnings per share reached $ 1.19 in terms of estimates of $ 1.01.
But CEO Jaceacob Taen told Yahoo Finance that it remains positive about the company’s close growth. Why? Because, in part, pharmaceutical companies can provide a new market.
“Now, we are moving from small things to really big programs. Some of the things that complement the NIH reduction are kind of indirect, but the farm gets more interest to these major programs,” he said, noting that 15% of the company is exposed to funding government research.
“It’s not just about sequencing, but really using huge amounts of data … To really identify new drug targets and understand the disease,” Taisen said.
The idea of using patient data to help the pharmaceutical world was also identified by 23andme, which recently came out of bankruptcy Through an unprofitable led by founder Ann Sojchicki. Tsen said that unlike the 23andme, which he collaborated, his company would not perform the development of drugs independently.
“We have a lot of pharmaceutical companies that are very excited to work with us,” he said.
In addition to the genetic testing of patient samples, the company is considering growing in the preventive side of carcinoma screening. The oncology business, Tsen said, will have a healthy growth over the next 10 or more years.
China has banned imports of San Diego -based company sequencing machines earlier this year as part of its retaliatory activities for Trump’s tariff war. Tsen said he was working with regulators to try to get it back, but “in the meantime, that business is falling, and we expect it to be flat.”
In fact, although China is historically about 10% of the company’s business, it contributed to half the decline in earnings last week. “China has never been a huge part of Illumina’s business. When it was the biggest, it was only about 10%. We are reduced to 5% of the business,” Tsen told Yahoo Finance.
