Pacific Biosciences of California (NASDAQ:PACB) has announced its third trimester earning report on Tuesday. It registered an income of ($0.31) per share (EPS) for the period, which missed the unanimous view of analysts that it would ($0.30) per share, in the three month period its total income stood at $7.40 million, which was below the unanimous estimate of $7.08 million. In the same period last year the company had earned ($0.41) earnings per share. The company showed an increase of 164.3% in income over the same period last year. The companies ratings have also improved with researchers at the Maxim Group have increased their price target on shares of the company from $4.00 to $8.00
The company also announced an agreement with Roche Diagnostics where it would be manufacturing diagnostic products and would receive $35 million at the start and another $40 million later. Under the terms of the agreement, it would be manufacturing sequencing systems and consumable products and would be selling them only to Roche, which has given them money for the lone license to use the developed material.
The deal allows PACB to continue selling its goods in other arenas. As per the agreement Roche has settled that it would not sell an new sequencing instrument for clinical use which comes under the terms of the agreement. Roche would be paying $ 35 million immediately and the remainder $40 million would be paid if the project achieves certain records. The CEO of the Roche’s sequencing unit, Dan Zabrowski, called the agreement another step in making outine DNA sequencing part of medical testing. Roche Diagnostics is part of F. Hoffman-La Roche Ltd.
