Pacific Biosciences

Pacific Biosciences of California, Inc.

Company type	Public
Industry	Biotechnology
Predecessor	Nanofluidics, Inc.
Founded	2004 (2004)
Founder	Jonas Korlach, Steve Turner, Mathieu Foquet
Headquarters	Menlo Park, California , United States
Area served	Worldwide
Key people	Christian Henry (CEO and President), John F. Milligan (Chairman)
Products	Gene sequencing technologies, including SMRT sequencing and SBB chemistry platforms
Revenue	$200.5 million (2023)
Net income	-$306.7 million (2023)
Total assets	$1.75 billion (2023)
Number of employees	575 (2023)
Website	www.pacb.com

Pacific Biosciences of California, Inc. (PacBio) is a biotechnology firm based in the United States, established in 2004, that focuses on creating and producing cutting-edge gene sequencing technologies. Located in Menlo Park, California, the company’s primary offerings consist of two key sequencing platforms: single-molecule real-time (SMRT) sequencing, which utilizes zero-mode waveguides, and sequencing by binding (SBB) chemistry, employing native nucleotides for accurate DNA attachment and elongation.

PacBio delivers its innovative DNA sequencing solutions to a worldwide clientele, including research organizations and biotech companies. In 2023, the company reported revenues of $200.5 million but recorded a net loss of $306.7 million, reflecting continued investments in technological development and market growth. The workforce numbers 575 employees, with total assets valued at $1.75 billion and cash reserves amounting to $631.4 million.

The executive leadership team is headed by CEO and President Christian Henry alongside Chairman John F. Milligan, who oversee strategic direction and expansion efforts within the competitive biotechnology sector. PacBio is publicly listed on NASDAQ under the ticker PACB and is included in the Russell 2000 Index.

History

The company’s origins trace back to research conducted at Cornell University, where semiconductor fabrication, photonics, and biotechnology were integrated. The founding team included three graduate students—Jonas Korlach, Steve Turner, and Mathieu Foquet—from the laboratories of Professors Watt W. Webb and Harold Craighead.

Originally known as Nanofluidics, Inc., it secured nearly through six rounds of venture capital funding, establishing itself as one of the most heavily financed startups by 2010 prior to its initial public offering in October of that year. Principal investors comprised Mohr Davidow Ventures, Kleiner, Perkins, Caufield & Byers, Alloy Ventures, and the Wellcome Trust.

The company’s inaugural commercial product, the PacBio RS sequencer, was introduced to select clients in 2010 before a wider launch in early 2011. This was followed by the release of the enhanced PacBio RS II in April 2013, which expanded its genomic sequencing capabilities.

Leadership

Hugh Martin, an entrepreneur-in-residence at Kleiner Perkins, assumed the role of CEO in 2004. On January 6, 2012, Michael Hunkapiller, PhD, a board member at that time, took over as CEO. Following his retirement in September 2020, Christian Henry—previously executive vice president and chief commercial officer at Illumina, Inc. who joined PacBio’s board in July 2018—was appointed CEO.

Illumina: attempted acquisition

On November 1, 2018, Illumina, Inc. announced plans to acquire PacBio for $1.2 billion in cash with an anticipated closing in the fourth quarter of 2019. However, in December 2019 the Federal Trade Commission filed a lawsuit to prevent the transaction over antitrust concerns. Subsequently, the acquisition was terminated on January 2, 2020. Illumina agreed to compensate PacBio with a $98 million breakup fee along with $28 million for previously agreed deal extensions.

Sequencing instruments

PacBio introduced its initial instrument—the PacBio RS—to selected customers at the end of 2010 and launched it commercially in early 2011. That same year GATC Biotech became its first European service provider. An upgraded model released in April 2013 featured longer read lengths and increased throughput capabilities. Support for the RS platform continued until late 2021.

In September 2015, PacBio unveiled the Sequel System offering higher sequencing output within a more compact design and at a reduced cost compared to the RS II model. In October 2022, the company revealed a new sequencing platform capable of processing up to 1,300 human genomes annually—representing a substantial improvement in throughput relative to earlier instruments.

Reagents and SMRT Cells

Customers utilize reagent kits designed for DNA sample preparation alongside small consumables known as "SMRT Cells" to operate the sequencing devices. Initial versions of these cells measured slightly less than one square centimeter and housed tens of thousands of zero-mode waveguides (ZMWs). More recent models incorporate higher-density SMRT Cells containing up to 25 million ZMWs, which facilitate accelerated DNA sequencing and bolster the company's market position through enhanced technological capabilities.

Software and applications

PacBio's bioinformatics software for secondary data analysis has progressed from the open-source “SMRT Analysis” platform used with the RS system to the more unified "SMRT Link" suite developed for the Sequel system. In 2013, the company introduced sophisticated bioinformatics solutions for automated genome assembly (HGAP) and sequence refinement (Quiver), thereby expanding its product offerings and advancing its presence in genomic data analytics.

External links

• Company website
• Wall Street Journal profile