Diagnostic biotech developer Illumina’s growth in the second quarter of the year bucked analysts’ expectations as it posted 78% in sales at the end of the period.
According to Illumina CEO Francis deSouza, the company sees this development as a push towards revising its revenue projections for the second half of this year.
Illumina posted revenues amounting to $1.13 billion at the end of June, given how various testing procedures ranging from population genomics to increasingly relevant DNA-driven diagnostics for cancer have resumed.
Smaller additional gains came from testing protocols for COVID-19 as these are dependent on genetic sequencing to give researchers a clear picture of how variants are emerging and how widely these are spreading throughout the world.
Sales for the company’s consumables hit $704 million, up by 82%. Oncological testing solutions were among the best-performing products, as these have grown considerably over three consecutive quarters. The sector’s growth was also fueled by the National Institute of Health’s All of Us program, which is currently working at full scale to achieve full genomic sequencing in the United States of at least a million people.
Setting new records
Another key growth area for Illumina was in instrument sales, which set a new record by going up by 7% compared to its performance in the earlier part of the year. The company earned approximately $189 million, $20 million of which was from the sale of various COVID-19 surveillance and contact tracing modalities.
With regard to the ongoing fight against the pandemic, the company has pledged $60 million towards a partnership with The Gates Foundation where Illumina would provide hardware and training support for the latter’s global outbreak surveillance network.
According to deSouza, Illumina’s core markets have been expanding thanks to several factors, including the need for more sequencing applications in clinics, heightened patient awareness, and increased reimbursement coverage. In addition, while oncology has long been a key growth area for the company, deSouza sees further improvement in sectors like genetic disease testing and reproductive health.
Previously, Illumina predicted that its Q2 revenue would grow between 25 and 28%. The company has now raised its guidance thanks to its stellar performance during the period and is now looking at revenue growth between 32 and 34% for the second half of the year. Note, however, that this forecast does not include potential revenues from its impending acquisition of cancer blood test developer Grail.
Previously, the company expected its revenues to grow between 25 and 28%. Based on its Q2 performance, however, it has adjusted its forecast for the rest of the year to between 32 and 34%. Note that this projection excludes any gains expected from Illumina’s currently stalled acquisition of oncological testing company Grail.
At present, Illumina’s acquisition of its former spinout remains in limbo due to an anti-trust investigation spearheaded by regulators in the European Union.