Pacific Biosciences Shares Rise 22% on $900 Million Investment from Japan’s SoftBank

Source: Streetwise Reports   02/10/2021

Shares of Pacific Biosciences of California traded to a new 52-week high after the firm reported that a Softbank Group subsidiary will invest $900 million to support its growth initiatives.

Prior to the open of U.S. markets today, long-read genetic sequencing platform provider Pacific Biosciences of California Inc. (PACB:NASDAQ) announced that “SB Management, a subsidiary of Softbank Group Corp. (SFTBY:OTC-Pink ADR), will make an investment of $900 million in convertible senior notes to support the company’s future growth initiatives.”

Pacific Biosciences’ President and CEO Christian Henry commented, “This strategic investment by SoftBank validates our leadership position in the long-read DNA sequencing market and enables us to further accelerate our growth strategies…Currently, we offer one of the most accurate and complete sequencing solutions on the market and this financing will enable us to continue to expand our product portfolio and advance our commercial expansion as we seek to transform the field of genomics.”

Akshay Naheta, CEO of SB Management, remarked, “We believe that PacBio’s HiFi sequencing will be the de facto standard tool for population genomics fundamentally altering the practice of healthcare…Christian has assembled a world-class management team to commercialize market-leading sequencing technologies and to prepare population-scale healthcare systems for a future in precision medicine. We look forward to partnering with the Company in its efforts to build the most advanced genome sequencing platform in the world.”

The company indicated that under the terms of the investment agreement, SB Management will purchase $900 million of Convertible Senior Notes with a maturity date of February 15, 2028. The convertible notes will bear an interest rate of 1.5% per annum and will have an initial conversion price of $43.50 per share of Pacific Biosciences common stock. Upon conversion, SB Management may receive settlement in cash, shares or any combination thereof at Pacific Biosciences’ sole discretion.

Pacific Biosciences noted that it intends to file a Form 8-K today with the U.S. Securities and Exchange Commission, which will include detailed information pertaining to this announcement.

In addition, the company advised that it will be releasing its Q4/20 and FY/20 financial results after U.S. markets close for trading today. The firm has scheduled a quarterly conference call to take place a 4:30 p.m. EST today to discuss the results which it indicated will be pretty much in-line with the preliminary data it pre-released on January 11, 2021. Those interested in joining may access the webcast on Pacific Biosciences’ website.

Pacific Biosciences is a designer, developer and manufacturer of highly accurate long-read genetic sequencing systems based in Menlo Park, Calif. The firm explained that “its innovative instruments are based on Single Molecule, Real-Time (SMRT®) Sequencing technology, which delivers a comprehensive view of genomes, transcriptomes, and epigenomes, enabling access to the full spectrum of genetic variation in any organism.” The company noted that its PacBio® sequencing systems are used worldwide by scientists in the fields of animal sciences, microbiology and human biomedical research.

Pacific Biosciences began the day with a market cap of around $7.4 billion with approximately 186 million shares outstanding and a short interest of about 7.0%. PACB shares opened more than 22% higher today at $48.50 (+$8.96, +22.66%) over yesterday’s $39.54 closing price and reached a new 52-week high price this morning of $51.88. The stock has traded today between $45.3911 and $51.88 per share and is currently trading at $48.24 (+$8.70, +22.00%).

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.