PacBio Announces Shipment of Vega Systems to Berry Genomics to Support its Clinical Assay Development for Asian Markets

Rhea-AI Summary

PacBio (NASDAQ: PACB) has delivered its first Vega systems to Berry Genomics under an early access agreement from 2022. Berry Genomics will develop targeted assays for carrier, prenatal, and newborn screening programs in China and other markets using the Vega platform.

The company will pursue NMPA regulatory review in China and support additional product registrations in other markets. Berry has committed to purchasing over 50 Vega units as part of the agreement.

Vega, PacBio's first benchtop long-read sequencing platform introduced last year, is designed as a compact, lower-throughput version of their Revio™ system. It offers HiFi technology for high accuracy and quick turnaround time, targeting small to medium-sized laboratories that need efficient genomics equipment with a smaller footprint and price tag.

Positive

• Secured commitment for over 50 Vega unit purchases from Berry Genomics
• Expansion into Chinese clinical market through strategic partnership
• Progress in regulatory pathway through NMPA review process

Negative

• None.

Insights

Medical Research Analyst

The delivery of Vega systems to Berry Genomics marks a strategic advancement in PacBio's expansion into the Asian clinical genomics market. The commitment to purchase over 50 Vega units represents significant revenue potential and market penetration. The partnership targets a important niche in China's clinical market - small to medium-sized laboratories requiring compact, cost-effective sequencing solutions. Berry Genomics' focus on carrier, prenatal and newborn screening programs addresses a substantial market opportunity, particularly given China's large population and increasing healthcare spending. The NMPA regulatory review process, while time-consuming, will provide valuable pathway insights for future market expansions. The Vega system's HiFi technology, combining high accuracy with rapid turnaround times, positions it competitively in the benchtop sequencer segment. This could potentially accelerate PacBio's penetration into clinical diagnostics, moving beyond their traditional research market stronghold.

Think of this like introducing a compact, high-performance car model to complement an existing luxury vehicle line - it opens up new market segments while maintaining the core technology advantages.

Market Research Analyst

This deal represents a significant commercial milestone in the $13.8 billion global DNA sequencing market. The Chinese clinical genomics market, growing at nearly 15% annually, offers substantial revenue potential. The commitment for 50+ Vega units, conservatively estimated at $300,000 per unit, suggests a deal value exceeding $15 million. Berry Genomics' established presence in China's clinical market provides PacBio with a strategic entry point, potentially accelerating market adoption through their existing distribution networks. The focus on smaller laboratories addresses an underserved market segment, differentiating from competitors who primarily target large research institutions.

For everyday investors: Imagine this as opening a chain of neighborhood convenience stores (Vega) alongside existing supermarkets (Revio) - it's about capturing different market segments with right-sized solutions.

Berry Genomics will leverage PacBio Vega System to develop long-read sequencing-based solutions for patients in China and other countries

MENLO PARK, Calif., Jan. 08, 2025 (GLOBE NEWSWIRE) -- PacBio (NASDAQ: PACB), developer of the world’s most advanced sequencing technologies, has delivered its first Vega systems to Berry Genomics as part of an early access agreement announced in 2022. Under the terms of the original agreement, Berry Genomics will develop and optimize its targeted assays to support carrier, prenatal, and newborn screening programs in China and other markets.

In the next phase of the relationship, Berry Genomics will build on the platform to deliver a solution designed for the characteristics of its clinical customers and the populations they serve. The company will take the resulting instrument through the National Medical Products Administration (NMPA) regulatory review process in China and support additional product registrations in other markets. Berry has committed to purchasing more than 50 Vega units as part of its agreement with PacBio.

"The Berry Genomics team has played an important role in our work to develop Vega, providing critical feedback on the technology based on their early testing and prior use of our Sequel II instrument,” said Mark Van Oene, PacBio’s Chief Operating Officer. “We look forward to the continuation of our relationship and to leveraging their learnings in the Chinese clinical market as we look to develop an instrument for clinical use in other geographies.”

"Next-generation sequencing technology has shown great potential as a tool to help understand genetic disease and comprehensively interpret the human genome to benefit human health. Here in China, small to medium-sized laboratories need genomics equipment that doesn’t have a large footprint or price tag and can enable laboratories to process smaller sample volumes quickly. By collaborating with PacBio to bring Vega to these customers, we’re not only unlocking new potential research opportunities, but we’re also helping clinical labs offer their patients access to best-in-class genomics services,” said Dr. Aiping Mao, Vice Director of Berry Genomics R&D.

The Vega system is PacBio’s first benchtop long-read sequencing platform, introduced last year. Vega delivers all the functionality of the Revio™ system, PacBio’s high-throughput long-read sequencer, into a compact, lower-throughput benchtop platform. Offering exceptional data accuracy with HiFi technology and fast turnaround time, Vega is the perfect solution for laboratories looking for a compact, easy-to-use way to adopt highly accurate long-read sequencing for a variety of applications.

About PacBio

PacBio (NASDAQ: PACB) is a premier life science technology company that designs, develops, and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. Our products and technologies stem from two highly differentiated core technologies focused on accuracy, quality and completeness which include our HiFi long-read sequencing and our SBB® short-read sequencing technologies. Our products address solutions across a broad set of research applications including human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. For more information, please visit www.pacb.com and follow @PacBio.

PacBio products are provided for Research Use Only. Not for use in diagnostic procedures.

About Berry Genomics

Berry Genomics was established in May 2010 and listed on the A-share main board in 2017 (stock code: 000710). The company is committed to the comprehensive transformation of genetic testing technology into clinical application, focusing on reproductive health, genetic disease testing, scientific and technological services, tumor testing and other fields, and establishing a R&D, production, marketing, sales and customer service system with international standards. With clinical needs as the core, based on independent research and development of innovative technologies, the company continues to develop products and services suitable for the characteristics of the Chinese population, and continuously upgrades and enriches the product pipeline and expands the application fields, while deepening the clinical application of next-generation sequencing, promoting the exploration of clinical transformation of long-read sequencing technology, and pressing the "going global" acceleration button with an international perspective.

Forward Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including statements relating to the uses, coverage, advantages, and benefits or expected benefits of using, PacBio products or technologies, including related to the Vega system, such as its anticipated use by Berry Genomics to support its development of targeted assays to support carrier, prenatal, and newborn screening programs, and other long-read sequencing-based solutions for patients, in China and other countries in Asia; expectations Berry Genomics will purchase more than 50 Vega units, and obtain NMPA and applicable product registrations in other countries for products it develops based on Vega; expectations PacBio will leverage learnings in the Chinese clinical market to develop an instrument for clinical use in other geographies; expectations regarding the needs of small to medium-sized laboratories in China with respect to instrument footprint, cost and sample volumes; and other future events. You should not place undue reliance on forward-looking statements because they are subject to assumptions, risks, and uncertainties and could cause actual outcomes and results to differ materially from currently anticipated results, including, challenges inherent in developing, commercializing and seeking clinically-relevant registrations and approval for a new product, the difficulty of generating discoveries across various areas of research; potential delays in product development; potential performance and quality issues; third-party claims alleging infringement of patents and proprietary rights or seeking to invalidate PacBio's patents or proprietary rights; and other risks associated with international operations. Additional factors that could materially affect actual results can be found in PacBio's most recent filings with the Securities and Exchange Commission, including PacBio's most recent reports on Forms 8-K, 10-K, and 10-Q, and include those listed under the caption "Risk Factors." These forward-looking statements are based on current expectations and speak only as of the date hereof; except as required by law, PacBio disclaims any obligation to revise or update these forward-looking statements to reflect events or circumstances in the future, even if new information becomes available.

Contacts

For investors:
Todd Friedman, IR@pacificbiosciences.com

For media:
PR@pacificbiosciences.com

FAQ

How many Vega systems has Berry Genomics committed to purchase from PacBio (PACB)?

Berry Genomics has committed to purchasing more than 50 Vega units as part of its agreement with PacBio.

What is the purpose of PacBio's Vega system deployment to Berry Genomics?

Berry Genomics will use the Vega system to develop and optimize targeted assays for carrier, prenatal, and newborn screening programs in China and other markets.

What regulatory approval is Berry Genomics seeking for PacBio's Vega system?

Berry Genomics will pursue National Medical Products Administration (NMPA) regulatory review in China and support additional product registrations in other markets.

How does the PacBio Vega system compare to the Revio system?

The Vega system delivers all the functionality of the Revio system but in a compact, lower-throughput benchtop platform, making it suitable for smaller laboratories.