DNA sequencing market has been nominated for a really long time by a giant company called Illumina. In order to eradicate competition from any potential rival and making a significant advance in the technological sector of DNA sequencing, Illumina bought the company called Pacific BioScience for a whopping $1.2bn. This deal has cemented its place as a pioneer in this sector in the near foreseeable future.
The company, Illumina, is valued at an exorbitant price of $45bn. Companies ranging from 23andMe to Ancestry uses machines made by this company in order to perform the DNA sequencing process. Though Pacific BioScience is a much smaller company in comparison to Illumina, this deal is the highest it has made in the past 20 years.
It has also resulted in Illumina continuing to be the number one company in genome sequencing. They burst into the scene by bringing down the costs of sequencing from millions of dollars in 2001 to a merely $1000, bringing about a revolution in the sequencing industry. Almost all the reputed companies are dependent on the machines made by Illumina to perform the process.
The tie-up between Illumina and Pacific BioScience has technological advancement implications as well. Illumina uses a technology that “short reads” DNA sequence and then places them in the correct order one after the other. On the other hand, Pacific BioScience has the provision of “long reads” that sequences longer strands of DNA at once and helps to detect whether the problem is at two different places in a single strand or both the copies of the gene are broken.
This is critical to gather more information about the suspected diseases and will result in better diagnosis and treatment plans. Thus, this takeover will prove to be beneficial in the field of medical science.
Illumina had a similar takeover with a company based in the UK called Oxford Nanopore, which had similar “long read” technology but that didn’t end well as matters had to take legal routes to decide on some patency. Hopefully, this deal will progress in a much better way and is expected to thrive.