Illumina Introduces NextSeq 550Dx, Updates Use Of MiSeqDx

Illumina, Inc. (NASDAQ:ILMN) recently introduced its second FDA-regulated and CE-IVD marked next-generation sequencing (NGS) system — NextSeq 550Dx. The instrument has been designed to deliver the power of high-throughput NGS to the clinical laboratory.

The company announced that the intended use for the MiSeqDx instrument (the first FDA regulated NGS sequencer) has been extended to include the use of DNA libraries generated from formalin-fixed paraffin embedded (FFPE) tissues. This will enable clinical labs to use FFPE samples while developing clinical tests for new applications. This will also allow the development of more diagnostic products and services at clinical labs as clinicians will gain access to information generated on Illumina’s NGS technology.

Illumina now has a solid diagnostic NGS portfolio, courtesy of its NextSeq 550Dx and the MiSeqDx products. This portfolio is capable of meeting any clinical requirement for NGS-based in vitro diagnostic (IVD) products.

According to Markets and Markets, the global next-generation sequencing market is estimated to reach a worth of $12.45 billion by 2022, at a CAGR of 20.5%.

Illumina is striving to expand its NGS platform. In line with this, the company recently announced the launch of a solution under its noninvasive prenatal testing (NIPT) kit in Europe. The product VeriSeq NIPT solution is a CE-IVD marked NGS-based approach to NIPT.

Meanwhile, Illumina, along with Telegraph Hill Partners, announced plans to set up an independent company — Verogen, Inc. This entity is expected to strengthen Illumina’s NGS business in the forensic genomics market.

Also, Illumina announced that its Extended RAS Panel, an FDA-approved NGS kit, meets the newly published guidelines for evaluation of colorectal cancer.

The company had also launched Bio-Rad Single-Cell Sequencing Solution, the first NGS workflow for single-cell analysis, in collaboration with Bio-Rad Laboratories, Inc.

Over the last three months, Illumina has gained 5.8% as against the broader industry’s decline of 6.4%.

Estimate Revision Trend

The estimate revision trend has been favorable for the company. For the current year, 11 estimates moved north compared with no movement in the opposite direction over the last month. As a result, the Zacks Consensus Estimate for the full year has risen to $3.74 per share from $3.65 over the same period.

Zacks Rank & Key Picks

Illumina carries a Zacks Rank #3 (Hold).

A few better-ranked medical stocks are PetMed Express, Inc. (NASDAQ:PETS) , Align Technology, Inc. (NASDAQ:ALGN) and Myriad Genetics, Inc. (NASDAQ:MYGN) . Notably, PetMed, Align Technology and Myriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 77.9% over the last year.

Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 156.3% in the last year.

Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has gained 82.1% in the last year.

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