Pacific Biosciences of California, Inc. PACB recently announced a significant publication from Radboud University Medical Center (Radboudumc) and its research partners in the American Journal of Human Genetics.

The study demonstrates the impact of PacBio’s HiFi long-read sequencing technology in identifying genetic causes of rare diseases, illustrating the feasibility of potentially replacing multiple diagnostic tests with a single, more comprehensive approach.

(Read more: PacBio Stock May Gain Following the Collaborated Launch of GutID)

Likely Trend of PACB Stock Following the News

Following the announcement, shares of the company moved south 7.9% to $1.85 yesterday. In the past six months, PACB’s shares have lost 11.7% compared with the industry’s decline of 0.8%. The S&P 500 has gained 3.5% in the same time frame.

However, the news highlights PacBio's HiFi sequencing technology's success in advancing rare disease diagnostics, significantly improving accuracy and detection. This innovation strengthens PacBio's market position in genomics and healthcare, potentially boosting revenues through wider adoption in clinical and research applications. As recognition and demand for such cutting-edge solutions grow, the long-term outlook for PacBio's stock price is positive due to increased investment interest and broader market penetration.

PACB currently has a market capitalization of $575.1 million. The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $155.7 million, indicating a 22.4% decline from the reported figure for fiscal 2023.

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More on PACB’s HiFi Long-Read Sequencing Study Results

Under the direction of Christian Gilissen and Lisenka Vissers of Radboudumc, the study employed HiFi long reads and PacBio's Revio platform to analyze 100 difficult patient samples in which the genetic causes of rare diseases had proven difficult to identify in previous investigations using short reads combined with various supplementary tests. The results of HiFi sequencing from these samples revealed an impressive 93% of pathogenic variants, potentially improving cost-effective diagnostic implementation. HiFi technology also made it possible to detect genetic variants that short-read approaches missed, such as complex structural variants and DNA methylation abnormalities.

PacBio and Radboudumc are accelerating efforts to integrate HiFi sequencing into clinical practice. In the month-to-date period, 981 samples had been sequenced, with 862 analyzed since August 2024. Automated workflows now process 24 samples per run, with plans to increase to 96, while streamlined protocols aim to support diagnostics for all variant types by summer 2025. Additionally, Radboudumc expanded its Revio instrument fleet in late 2024 to meet the goal of sequencing 5,000 genomes on SPRQ chemistry.

The study highlights HiFi long reads' ability to combine multiple diagnostic tests into a single, precise, and comprehensive solution. Researchers expect that ongoing advancements and reduced technology costs will drive its adoption as the preferred approach for diagnosing rare diseases.

Favorable Industry Prospects for PACB Stock

Per a report by Grand View Research, the global long-read sequencing market size was valued at $455.1 million in 2022 and is expected to witness a CAGR of 30.9% from 2023 to 2030.

The major factors driving the market growth include the rising prevalence of genetic diseases, such as cancers and chromosomal disorders, the rising popularity of personalized medicine and rising technological advancements resulting in the emergence of newer technologies, such as third-generation sequencing.

PACB’s Zacks Rank & Stocks to Consider

PACB carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and Abbott Laboratories ABT.

Masimo, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 31.7% against the industry’s 1% decline in the past six months.

Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.

ARAY’s shares have gained 8.8% against the industry’s 1% decline in the past six months.

Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.

ABT’s shares have risen 8.5% in the past six months compared with the industry’s 7.2% growth.

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