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Illumina: Gene Sequencing Leader In The Golden Age Of Genetics

Mar. 08, 2021 6:04 AM ETIllumina, Inc. (ILMN)8 Comments
Out of Ignorance profile picture
Out of Ignorance


  • Illumina is strategically positioning itself as a key player in high growth segments of the genomic revolution.
  • Illumina's metrics show that it is another perennially high priced stock.
  • Illumina's leading gene sequencing portfolio includes two important revenue drivers, its sequencing platforms and its arrays business.
  • The pandemic has helped certain aspects of Illumina's business, but overall, its impact has been negative.

Illumina (NASDAQ:ILMN) is the market leader in gene sequencing, a critical technology in today's world. As such, it deserves consideration in every investment portfolio. In addition to its highly profitable existing sequencing business, it is ideally situated to assess and participate in developing genomic opportunities; this adds substantially to its potential value.

Over the past year, I have been periodically trading the stock in small increments with a goal of slowly building a position at a palatable price. In this article, I will share my investigations into the company. So far, the more I learn, the more I see Illumina as a uniquely attractive company, albeit highly priced at the moment. I look forward to any comments, pro or con, that can add to understanding of the company.

Illumina balances its approach to innovative technologies between enabling and participating

During his recent Cowen Health Care Conference presentation, CEO deSouza gave a fascinating answer to the moderator's rambling question about Illumina's role in emerging genomic related industries. He noted that we are now in a golden age for gene focused innovation; if one characterizes the 20th century as the century of technology and the bit, he sees the current century playing out as the century of biology and the genome.

He cites hot developing areas such as single cell genomics, MRD, and liquid biopsy. He points to Illumina's role in catalyzing developing companies, such as 10x Genomics (TXG), NanoString Technologies (NSTG), and Guardant Health (GH) with a goal of providing genetic readout for these seminal technologies.

He notes:

...our philosophy is going to be we want to be the readout technology for all these really hot spaces that are emerging, we want to capitalize them and create them because they drive lots of demand for sequencing.

This approach applies to a

This article was written by

Out of Ignorance profile picture
Writing under the pseudonym "out of ignorance", I very much regard investing as a learning process. Investing failures are tuition paid. Investing successes enter the trove of lessons learned. In my Seeking Alpha articles I share my experience from decades of investing and from ~5 years of focused research on a variety of stocks, in recent years with a primary emphasis on healthcare stocks. I greatly appreciate those who take the time to share their reactions to articles, particularly those who share relevant anecdotes and experiences.

Analyst’s Disclosure: I am/we are long ILMN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I may buy or sell shares in any stock mentioned in this article over the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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