10x Genomics, Inc. (TXG) experienced a significant stock price plummet of 12.77% in Monday's pre-market trading session. The decline can be attributed to concerns over potential funding cuts for biomedical research by the National Institutes of Health (NIH), a major source of federal funding for academic institutions, research centers, and medical schools.

According to Leerink Partners, a brokerage firm, the NIH plans to reduce indirect costs across existing and future grants related to biomedical research, amounting to approximately $4 billion in expected cost cuts. This move is anticipated to disproportionately impact large private academic institutions and research facilities, which are major customers of life sciences technology companies like 10x Genomics.

Leerink warns that the U.S. academic system has not experienced funding cuts of such magnitude and at such a rapid pace. As researchers become more cautious about their spending, companies like 10x Genomics and Quanterix are expected to face significant sales impact, particularly in the first quarter, as purchases of instruments and equipment are likely to be paused dramatically.