Increase In Collaborations, Partnerships, And M&As In The Global Sequencing Market

Sequencing companies are collaborating and partnering with each other to gain access to better technology or improve existing technology. This allows sequencing companies to enhance their product portfolio and widen their research scope. For example, in January 2018, Thermo Fisher Scientific and Illumina entered into a commercial agreement to provide researchers with greater access to Ion AmpliSeq technology. This agreement enables Illumina to sell Thermo Fisher`s Ion AmpliSeq technology under the name AmpliSeq, to researchers who conduct scientific studies on Illumina’s next-generation sequencing platforms. Ion AmpliSeq technology is used to capture DNA (deoxyribonucleic acid) and RNA (ribonucleic acid) from minute amounts of samples for application in multiple areas of research.

Again, in April 2018, Illumina collaborated with the US based pharmaceutical company, Bristol-Myers Squibb. Bristol-Myers Squibb will utilize Illumina’s next-generation sequencing (NGS) technology to develop and globally commercialize in-vitro diagnostic (IVD) assays.

Illumina is among the top five largest companies in the sequencing market. Illumina’s growth strategy aims to boost its operations in China through collaborations and product launches. For instance, in January 2018, the company formed a partnership with Guangzhou Kingmed Diagnostics Group Co., Ltd., to develop an integrated next-generation sequencing (NGS) system for molecular oncology and cancer testing. In August 2018, Illumina received approval from the China National Drug Administration to market and sell its MiSeqDx sequencing system in China.

Another example of a collaboration in the sequencing market is that between NanoString and Lam Research. In August 2017, NanoString, a provider of life science tools for translational research and molecular diagnostic products, and Lam Research, a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry, collaborated to advance NanoString`s registered Hyb & Seq next generation sequencing platform. The collaboration resulted in the complete development of the Hyb & Seq single molecule sequencing chemistry, designing of a clinical sequencing instrument, and securing the necessary regulatory approvals.

Sequencing is the process of determining the order of nucleotides in nucleic acids such as DNA or RNA. The global sequencing market, estimated at $9.3 billion in 2019, is expected to grow to $18.2 billion in 2023 at an annual growth rate of a little over 18%. Perhaps this rapid growth forecasted for the global sequencing market is reason why some of the largest players in the market are investing in mergers and acquisitions to strengthen their businesses.

In November 2018, Illumina, Inc. acquired Pacific Biosciences of California, Inc., for $1.2 billion in cash. Pacific Biosciences will receive $8.0 per share. The transaction was expected to close in mid-2019. The acquisition will strengthen Illumina’s sequencing technology. Pacific Biosciences designs, develops and manufactures gene sequencing and other real time biological observation systems. The company was founded in 2000 and is headquarters in Menlo Park, California, United States.