Illumina, Inc. ILMN has announced a collaboration with NVIDIA NVDA to advance technology platforms for analyzing and interpreting multiomic data. By combining advancements in artificial intelligence (AI) with multiomic data at scale, the partnership seeks to optimize the analysis of vast amounts of data involved in multiomic research.

The latest development aims to accelerate progress in clinical research, genomics AI development and drug discovery.

ILMN Stock’s Trend in Response to the News

Following the Jan. 13 announcement, Illumina shares jumped 5.5% to close at $144.22 on Monday. The company has democratized sequencing over the past 20 years, and with the progress in AI and multiomic analysis, it is enabling customers to gain new insights for its applications. This partnership with NVIDIA brings Illumina closer to this vision while enriching its analysis and interpretation tools to enable deeper biological insights and deliver total workflow solutions for customers. As a result, we anticipate that this development will boost market sentiment toward ILMN stock.

Illumina presently has a market capitalization of $21.65 billion. The Zacks Consensus Estimate implies a staggering 377.9% earnings growth for the company in 2024 year over year. It delivered an earnings beat of 432.8%, on average, in the trailing four quarters.

Importance of Illumina’s New Partnership

Illumina's leading sequencing technology, as well as its menu of DRAGEN-powered multiomics offerings, genomics AI tools and Illumina Connected Analytics platform, has streamlined genomic data generation and analysis. The company has invested in AI for genomic interpretation, developing the leading SpliceAI, PrimateAI-3D and Emedgene xAI algorithms. The new partnership will leverage Illumina’s sequencing technology and informatics tools alongside NVIDIA's leading AI technology, to accelerate drug discovery and clinical development, delivering powerful tools to help pharmaceutical companies identify new and better drug targets.

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In the first phase of the collaboration, Illumina and NVIDIA will work toward enabling DRAGEN algorithms on NVIDIA GPUs. Bringing Illumina DRAGEN to NVIDIA accelerated computing will expand the accessibility of Illumina multiomics analysis. The two companies will also work to incorporate NVIDIA's image processing and single-cell tertiary analysis tools onto the Illumina Connected Software multiomics module.

Furthermore, Illumina will look to expand its customer offerings with models developed by the NVIDIA Biology Foundation Model Research Team and partners. Customers will also be able to leverage these models with their own proprietary datasets to improve the performance for biologically relevant tasks of interest, such as cell state or gene transcription prediction.

Industry Prospects Favor Illumina

The global multiomics market was valued at $2.35 billion in 2023 and is expected to grow at a compound annual rate of 15.3% by 2030, according to a Grand View Research report.  Key factors driving the market’s growth are the increasing demand for single-cell multiomics and advancements in omics technologies. Moreover, the categories, such as genomics, proteomics, metabolomics and transcriptomics are gaining momentum for healthcare purposes.

More Updates From Illumina

In a separate release, Illumina has announced a pilot proteomics program in collaboration with deCODE Genetics, Standard BioTools, Tecan, GSK, Johnson & Johnson and Novartis. The program will analyze 50,000 UK Biobank samples using Illumina's upcoming proteomics assay, Illumina Protein Prep, powered by SOMAmer technology — a next-generation sequencing (NGS)-based solution that will help scale access to proteomic insights.

The program is expected to generate a new collection of high-quality, NGS-based proteomics data for the research community and pharma partners to advance biological insights.

ILMN Stock Price Performance

In the past year, ILMN shares have gained 2% against the industry’s decline of 15.4%.

Illumina’s Zacks Rank and Key Picks

Illumina currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Penumbra PEN and Phibro Animal Health PAHC. Each sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Penumbra shares have gained 1.8% in the past year. Estimates for the company’s 2024 earnings per share have remained constant at $2.81 in the past 30 days. PEN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%. In the last reported quarter, it posted an earnings surprise of 23.19%.

Estimates for Phibro Animal Health’s fiscal 2025 earnings per share have remained constant at $1.62 in the past 30 days. Shares of the company have surged 83% in the past year compared with the industry’s 9.3% rise. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.47%. In the last reported quarter, it delivered an earnings surprise of 52.17%.

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