Illumina Creates Helix: Here's What It Is, And What It's Worth

by Jayson Derrick

August 19, 2015 9:44 AM | 1 min read | Make a Comment

The New York Times on Tuesday discussed the creation of Helix, a new gene sequencing venture. The creation of the new company has the backing and support of Illumina, Inc. ILMN, along with the investment firms Warburg Pincus and Sutter Hill Ventures. According to the publication, the creation of Helix is "meant to help support the genetic analysis ecosystem" and will use Illumina's existing technology to "sequence customers' genetic information, and then place that data in the cloud and make it available to partners." Mizuho: Helix A ‘Long-Term Play' On Consumer Genomics' Peter Lawson of Mizuho Securities commented in a note on Tuesday that Helix represents a "long-term play" on consumer genomics and signals Illumina's commitment towards driving growth in the end-market outside of basic research. "We see the creation of Helix dovetailing with the Illumina Accelerator, establishing an ecosystem and locking in future customers," Lawson wrote. "We estimate Illumina's current market opportunity for consumer genomics is relatively small ($100-$200 million), but with substantial long-term upside." Lawson continued that Helix could capture a greater share of the expanding market by providing a "robust platform" to both industry and end-user consumers. The analyst added that most of the consumer base right now is focused on arrays, so pushing the uptake of sequencing would be a "key and attainable goal." The analyst also noted that the company will consolidate Helix in its financial statements, with the pro-rata impact attributable to outside investors reflected in a non-controlling interest line item in the income statement Finally, the announcement isn't expected to impact Illumina's 2015 guidance and will be approximately $0.10 dilutive to 2016 earnings. Lawson maintained a Buy rating on shares of Illumina with a price target raised to $250 from a previous $240.

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Posted In: Analyst Color Analyst Ratings Gene Sequencing Helix Illumina Accelerator Mizuho Securities New York Times Peter Lawson Sutter Hill Ventures Warburgh Pincus

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