Pacific Biosciences of California, Inc. (PACB), which develops and manufactures systems for gene sequencing, recently announced that it has acquired biotechnology company Circulomics, Inc. The financial terms of the deal have been kept under wraps.
Following the news, shares of the company declined 3.3% on Tuesday and closed at $29.79 in the extended trading session.
With this buyout, Pacific Biosciences will gain access to Circulomics’ expertise in extracting high quality, high molecular weight (HMW) DNA and its diverse customer base ranging across industries.
The CEO of Pacific Biosciences, Christian Henry, said, “The Nanobind technology that Circulomics has created is already proven in the market and will accelerate our efforts to make sample extraction and library preparation easier for our customers. By adding the team to PacBio we will be able to deeply integrate their technology into our workflows which will improve our entire long-read sequencing workflow.” (See Pacific Biosciences stock chart on TipRanks)
Last month, Cowen & Co. analyst Doug Schenkel reiterated a Hold rating on the stock but lowered the price target to $30 from $47 (0.7% downside potential)
Overall, the stock has a Hold consensus based on 1 Buy. The average PACB price target of $30 implies 0.7% downside potential. Shares have gained 676.6% over the past year.
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