Jake Allen

Jake Allen, on for Matt Sykes, asked for more detail on the weakness observed in the U.S. academic end market, the company's FDA submission timeline for its Alzheimer's test, and its strategy to counter a potential first-mover advantage by a competitor.

Answer

CEO Masoud Toloue explained that their multi-marker algorithmic Alzheimer's test is a market-differentiating product and they expect to complete clinical trial enrollment in the second half of the year before submitting their FDA application. He believes the market will consist of a combination of LDT and FDA-approved tests, not a single winner-take-all solution. CFO Vandana Sriram added that while instrument sales face pressure in the academic market, the consumables business has been resilient. She noted the company has now factored in a more significant potential reduction in NIH funding into its guidance.

Jake Allen of Goldman Sachs inquired about the scale of PacBio's clinical opportunity and its capacity to mitigate headwinds from the academic and government sectors in 2025.

Answer

Christian Henry, President and CEO, highlighted the growing adoption of the PureTarget panel by major labs like Quest and Myriad Genetics, which leverages HiFi sequencing to replace legacy tests and create durable revenue. Henry also pointed to aggressive growth in the rare disease space, particularly in Europe, with new Revio placements at hospitals and clinics, which he believes can help offset NIH funding uncertainty.