Pacific Biosciences Teams with Roche for Clinical Market
The agreement delivers Pacific Biosciences with cash to fund operations through 2016, according to a company conference call. The company also disclosed on the call that it sought out partners for the diagnostics markets starting late last year, but ruled out the sale of equity in the company as part of an agreement.
Menlo Park, CA 9/25/13; Washington DC 9/25/13—Sequencer maker Pacific Biosciences has announced an agreement with Roche Diagnostics to develop and manufacture diagnostic products, including sequencing systems and consumables. The products will be sold exclusively to Roche, which will distribute them in the human IVD field. Pacific Biosciences retains rights for all other fields. “We are looking forward to this partnership to accelerate and support the transition of DNA sequencing into routine diagnostics through our joint development efforts,” stated Dan Zabrowski, head of Roche’s Sequencing Unit. Pacific Biosciences will receive an up-front payment of $35 million, as well as an expected $40 million based on development milestones. The company also expects to receive income from the sale of products that Roche distributes. According to an SEC filing, the agreement has an initial term of 13 years and exclusivity is contingent on sales minimums and Roche not selling a competing new sequencing system for clinical use.
