Pacific Biosciences of California (PACB) UBS Global Healthcare Conference 2024 summary

Q3 performance and market dynamics

• Achieved sequential growth in Q3, driven by strong consumables and record Onso sales.

• Gross margins declined due to a successful promotional pricing experiment for Onso.

• China showed improved results, while EMEA faced temporary delays from tender issues; Americas impacted by reduced funding for the All of Us program.

• Guidance for Q4 is flat to slightly up, supported by new product launches.

Pricing strategy and accessibility

• Reduced Revio list price due to significant production cost savings, aiming to broaden market access.

• New price point ($599,000) is above current ASPs, so minimal ASP impact expected.

• Lower price intended to reach more customers, especially in academic and self-funded settings.

SPRQ (Spark) chemistry launch

• SPRQ chemistry reduces DNA input requirement from 2 micrograms to 500 ng, enabling access to millions more samples.

• New protocol validated for saliva kits, expanding sample collection options.

• Increases throughput per SMRT Cell by 33%, lowering genome sequencing cost from $995 to $500.

• Enables population-scale and clinical applications, making large-scale projects feasible.