Illumina forecasts flat 2024 sales as sluggish demand drags on

Illumina

08/02/2024 22:22

Feb 8 (Reuters) - Illumina  ILMN.O  on Thursday forecast
its annual core business revenue to be nearly flat compared to
fiscal year 2023 as subdued demand for its genetic testing tools
and diagnostics products extends into this year. 
    The gene sequencing machine maker has witnessed a year of
sluggish demand for its tools and services due to cautious
customer spending and a protracted recovery in its key market,
China.
    The company's fourth-quarter revenue was $1.12 billion,
compared with an estimate of $1.09 billion, helped by strong
demand for its consumables and DNA sequencing instruments,
NovaSeq X.
    It shipped 79 units of the instrument during the quarter and
352 for the full year 2023. 
    The gene sequencing company said it is focusing its
financial outlook on core Illumina, as the specific timing and
impact of its Grail divestment remains uncertain. 
    The U.S. life sciences company's core segment, which
excludes Grail, advances sequencing instruments, consumables and
services for genetic analysis to hospitals, biotech and
pharmaceutical companies for disease research and drug
development process. 
    Shares of the San Diego, California-based Illumina fell 2.7%
to $139.5 in extended trading. The stock lost more than 30% of
its value in 2023.  
    On an adjusted basis, it earned per share profit of 14 cents
during the quarter ended Dec.31, versus analysts' average
estimate of 2 cents. 
    Illumina said in December that it will divest cancer
diagnostic test maker Grail  GRAL.O  after the companies ran
afoul of U.S. and European antitrust enforcers for more than two
years and faced fierce opposition from activist investor Carl
Icahn.
    Terms of the divestiture are expected to be finalized by the
second quarter of 2024. 

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Rocky history of Illumina's Grail deal    https://www.reuters.com/markets/deals/rocky-history-illuminas-grail-deal-2023-06-06/
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 (Reporting by Pratik Jain in Bengaluru; Editing by Tasim Zahid)
 ((Pratik.Jain@thomsonreuters.com;))