Illumina Inc. Forms Alliance with Merck Serono for Gene Sequencing Market Consolidation

Strategic Insights -

Illumina Inc., a major developer of life science tools for large-scale genetic analysis, has recently formed an alliance with Merck Serono, the biopharmaceuticals business of Germany's Merck KGaA. The partnership aims to consolidate Illumina's foothold in the multi-billion gene sequencing market through strategic collaborations with therapeutics and diagnostic services providers. This deal, like others with AstraZeneca PLC, Janssen Biotech, Inc., and Sanofi, is expected to develop a universal next-generation sequencing (NGS)-based oncology diagnostic. The Precision Medicine Initiative, introduced by President Obama, is further driving the popularity of companion diagnostics companies and pharmaceuticals.

Key Takeaways:

  • Illumina has formed an alliance with Merck Serono to develop a universal next-generation sequencing (NGS)-based oncology diagnostic.
  • The partnership will work towards creating a cancer test system for precision medicine, with the goal of selecting suitable treatment options for patients.
  • Illumina is currently focused on delivering an RUO kit into the market and expects to present clinical utility data by year-end.
  • The Precision Medicine Initiative, introduced by President Obama, aims to expand clinically-based genetic trials to develop better treatments for cancer, with a $215 million investment to support the effort.
  • Illumina's growth in oncology remains a key focus area, with programs such as the Actionable Genome Consortium and development program in liquid biopsies expected to catalyze the market.
  • Illumina currently holds a Zacks Rank #2 (Buy), with Affymetrix Inc. holding a Zacks Rank #1 (Strong Buy).

Statistics:

  • $215 million investment to support the Precision Medicine Initiative.
  • Expected to present clinical utility data by year-end for the RUO kit.
  • Year 2015 marks the ecosystem's catalysis of this market through programs such as the Actionable Genome Consortium and development program in liquid biopsies.
  • As of 2012, AstraZeneca PLC (AZN) had an uptrend indicated by Comtex SmarTrend at $45.43.
  • As of 2012, Merck KGaA (MRK) had an uptrend indicated by Comtex SmarTrend at $39.03.

Sources:

  • Zacks.com via COMTEX (March 13, 2015) - Illumina Inc. Forms Alliance with Merck Serono for Gene Sequencing Market Consolidation.
  • Comtex SmarTrend Alert (02-15-2012) - DOWNTREND on AZN @ $45.43.
  • Comtex SmarTrend Alert (04-30-2012) - UPTREND on MRK @ $39.03.
  • President Obama's 2016 Budget - Precision Medicine Initiative.
  • Illumina Inc. - Actionable Genome Consortium and development program in liquid biopsies.