Pacific Biosciences of California, Inc., provider of the PacBio® RS II DNA Sequencing System, announced that it has entered into an agreement with Roche Diagnostics to develop diagnostic products, including sequencing systems and consumables, based on Pacific Biosciences' single molecule, real-time (SMRT®) technology.
Pacific Biosciences will develop and manufacture certain products intended for clinical use, which it will sell exclusively to Roche. Roche obtained worldwide rights to exclusively distribute these products in the field of human in vitro diagnostics. Pacific Biosciences will continue to market its current and future products for all fields outside of human in vitro diagnostics, including research, plant, animal, and applied markets.
Commenting on the agreement, Dan Zabrowski, Head of the Sequencing Unit at Roche said, "We see great potential in Pacific Biosciences' sequencing technology for the development of future clinical sequencing applications. Sequencing will be a key technology in addressing the strong and growing demand for genetic and genomic solutions in the clinic. We are looking forward to this partnership to accelerate and support the transition of DNA sequencing into routine diagnostics through our joint development efforts."
"We are delighted to have Roche as our in vitro diagnostics partner," stated Mike Hunkapiller, President and Chief Executive Officer of Pacific Biosciences. "As a world leader in in vitro diagnostics, Roche brings valuable expertise in designing products for clinical use and obtaining regulatory approvals to sell clinical products in the U.S. and around the world. We believe the combination of our SMRT Sequencing technology with Roche's market position and expertise in diagnostics will allow accelerated commercial success for both companies."
Under the agreement, Pacific Biosciences will receive an upfront payment of $35 million and expects to receive an additional $40 million in funding tied to development milestones. Once the development programs are completed, Pacific Biosciences expects to also receive income from the manufacture and supply of instrument, software, and certain consumable products that Roche will market and distribute for clinical use in combination with its assay specific reagents.
Perella Weinberg Partners acted as the exclusive financial advisor to Pacific Biosciences for this transaction.
About Pacific Biosciences
Pacific Biosciences of California, Inc. (Nasdaq:PACB) offers the PacBio® RS II DNA Sequencing System to help scientists solve genetically complex problems. Based on its novel Single Molecule, Real-Time (SMRT®) technology, the company's products enable: targeted sequencing to more comprehensively characterize genetic variations; de novo genome assembly to more fully identify, annotate and decipher genomic structures; and DNA base modification identification to help characterize epigenetic regulation and DNA damage. By providing access to information that was previously inaccessible, Pacific Biosciences enables scientists to increase their understanding of biological systems. More information is available at www.pacb.com.
Headquartered in Basel, Switzerland, Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics. Roche is the world's largest biotech company, with truly differentiated medicines in oncology, infectious diseases, inflammation, metabolism and neuroscience. Roche is also the world leader in in vitro diagnostics and tissue based cancer diagnostics, and a frontrunner in diabetes management. Roche's personalized healthcare strategy aims at providing medicines and diagnostic tools that enable tangible improvements in the health, quality of life and survival of patients. In 2012 Roche had over 82,000 employees worldwide and invested over 8 billion Swiss francs in R&D. The Group posted sales of 45.5 billion Swiss francs. Genentech, in the United States, is a wholly owned member of the Roche Group. Roche is the majority shareholder in Chugai Pharmaceutical, Japan. For more information, please visit www.roche.com.