What Happened?
Shares of genomics company Pacific Biosciences of California (NASDAQ: PACB) jumped 2% in the pre market session after the stock extended its positive momentum as the company partnered with DKSH and Chulalongkorn University to launch 'LIFE-SEQ', Asia's first genomic program for precision health.
This groundbreaking initiative, based in Thailand, will leverage PacBio's HiFi genome sequencing technology to advance lifelong care, starting with newborn screening and the detection of rare diseases. The project marks a significant milestone by introducing HiFi whole-genome sequencing into clinical care in Asia. As the exclusive distributor of PacBio in Thailand, DKSH will provide access to the sequencing platform and a team of genomics experts, facilitating the program's implementation.
After the initial pop the shares cooled down to $1.18, up 0.56% from previous close.
What Is The Market Telling Us
PacBio’s shares are extremely volatile and have had 82 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 5.7% on the news that markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading. Stocks rose in the morning session after an unexpected drop in the Producer Price Index (PPI) for August signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut. The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% the previous month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.
PacBio is down 35.8% since the beginning of the year, and at $1.16 per share, it is trading 56.4% below its 52-week high of $2.65 from November 2024. Investors who bought $1,000 worth of PacBio’s shares 5 years ago would now be looking at an investment worth $157.79.
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