PacBio PACB recently announced a new joint workflow with Covaris, a PerkinElmer company and leader in sample preparation technologies, aimed at enabling highly accurate HiFi long-read sequencing from formalin-fixed, paraffin-embedded (FFPE) tumor samples. The integrated solution combines Covaris’ advanced extraction technology with PacBio’s library preparation and Revio sequencing system, helping overcome long-standing challenges related to DNA damage and fragmentation in archived clinical samples.
The development significantly expands the usability of FFPE samples, which are widely available and critical for cancer research. By delivering higher-quality sequencing data, improved structural variant detection and direct mutation phasing, the workflow positions PacBio to unlock valuable insights from previously underutilized tumor archives and strengthen its role in advancing oncology research.
Likely Trend of PACB Stock Following the News
Shares of PACB have gained 1.9% since the announcement on Thursday. In the year-to-date period, shares of the company lost 12.8% compared with the industry’s 11.4% decline. The S&P 500 increased 2.8% in the same time frame.
This joint workflow is likely to strengthen PacBio’s long-term growth by expanding the addressable market for its HiFi sequencing platforms, particularly into the vast backlog of FFPE clinical samples that were previously difficult to analyze. By enabling high-quality long-read sequencing from these archived tissues, PacBio can drive higher adoption of its Revio system in both research and clinical settings, increasing instrument utilization and recurring consumables revenue.
PACB currently has a market capitalization of $483.2 million.
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More on the News
A key highlight of the joint workflow is its ability to recover longer DNA fragments, up to 5,000 base pairs, from heavily degraded FFPE samples using Covaris’ Adaptive Focused Acoustics-based truXTRAC extraction technology. These fragments are then processed through PacBio’s Kinnex library preparation, which concatenates shorter DNA pieces into longer molecules optimized for HiFi sequencing on the Revio system. This integrated approach not only improves sequencing efficiency but also ensures higher data quality, addressing a major limitation that has historically restricted the use of FFPE samples in long-read sequencing.
Importantly, performance data underscores the workflow’s potential impact. Across multiple tumor types, including brain, kidney and uterine samples, the solution generated more than 100 million HiFi reads per sample, with mean read lengths ranging from 750 to 1,500 base pairs. This enabled detection of more than 11,000 structural variants and over 5 million small variants per sample, with roughly 60% of variants directly phased into haplotypes. Compared to traditional short-read sequencing, which typically identifies fewer structural variants and relies on indirect phasing methods, this workflow delivers deeper and more actionable genomic insights, making it particularly valuable for complex cancer research applications.
Favorable Industry Prospect for PACB
Per a report by Grand View Research, the global long-read sequencing market size was estimated at $538.9 million in 2024 and is projected to reach $1.53 billion by 2030, expanding at a CAGR of 20.12% from 2025 to 2030.
The major factors driving market growth include the increasing prevalence of genetic diseases like cancers and chromosomal disorders.
Recent Developments by PACB
In March, PACB announced that Basecamp Research has selected its HiFi sequencing technology on the Revio system to support the ambitious Trillion Gene Atlas initiative.
The collaboration highlights the growing importance of high-accuracy, long-read sequencing in powering next-generation AI-driven drug discovery. By preserving full genomic context, PacBio’s HiFi sequencing is expected to enable more precise biological insights and improve the training of foundation models like Basecamp’s EDEN platform, ultimately accelerating the design of novel therapeutics at scale.
PACB’s Zacks Rank & Other Key Picks
Currently, PACB sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the broader medical space are Phibro Animal Health PAHC, GE HealthCare Technologies GEHC and Cardinal Health CAH.
Phibro Animal Health, currently sporting a Zacks Rank #1, reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of 87 cents, which surpassed the Zacks Consensus Estimate by 27.1%. Revenues of $373.9 million beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12% rise. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 20.1%.
GE HealthCare Technologies, currently carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2025 adjusted EPS of $1.44, which surpassed the Zacks Consensus Estimate by 0.7%. Revenues of $5.7 billion beat the Zacks Consensus Estimate by 1.9%.
GEHC has an estimated long-term earnings growth rate of 9.1% compared with the industry’s 12% rise. The company beat earnings estimates in the trailing four quarters, the average surprise being 7.5%.
Cardinal Health, currently carrying a Zacks Rank #2, reported a second-quarter fiscal 2026 adjusted EPS of $2.63, which surpassed the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion beat the Zacks Consensus Estimate by 0.9%.
CAH has an estimated long-term earnings growth rate of 15% compared with the industry’s 9.3% rise. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 9.3%.
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This article originally published on Zacks Investment Research (zacks.com).