Illumina at UBS Healthcare Conference Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“We believe we have over $12 billion opportunity today, and that’s broken down in the following way: firstly, life sciences research, which is about a $4 billion market, is by far the majority of our revenue.”

“The revenue split is about 70% sequencing, 30% microarray. We also have a PCR business, which is based on our Eco instrument.”

“our flagship product is the HiSeq family…the HiSeq instrument is the highest output, lowest cost per base and highest accuracy sequencer. We recently implemented or introduced and implemented, an upgrade to that instrument, the HiSeq 2500, which is the only instrument that can sequence a genome in about a day, 27 hours for the instrument with the most recent or most updated cameras.”

“we also focus on the front end, being sample preparation, and on the back end, being analysis.”

“on analysis side, we have a platform called BaseSpace, which is a cloud-based platform, that allows for storage, collaboration and analysis of genomic data.”

“we recognize that not every one of our customers either has the capital capacity or the interest in building out their own infrastructures around sequencing, so we provide a sequencing service. Our sequencing service has been very successful, the 10,000th genome was shipped in the last quarter”

“the direct-to-consumer market. This market is really interesting. For us, it’s approaching $50 million this year. There are companies that we partner with like 23andMe, Ancestry, Family Tree, National Geographic, who have really unique propositions on what to do with genomic data and how that ties into their own databases and their own information. The market is significantly elastic. We’ve seen that. It’s been tested really well by these companies. And they’ve now hit what we think is a pricing sweet spot, where for a very moderate sum, you can have your own DNA genotype.”