Pacific Biosciences of California (NASDAQ:PACB) recently announced its financial results for third quarter of this year. The company said that its revenue jumped by 80% on YoY basis. The Pacific Biosciences of California said that its revenue stood at $25.1 million in contrast with $13.9 million in Q3 2015.
In the meanwhile, the company said that it has terminated its agreement with Roche Diagnostics. The two companies had decided to form an alliance in the year 2013. As a result, Roche will have no rights to Pacific Biosciences’ Single Molecule, Real-Time (SMRT®) technology.
Climbing revenues for Q3 2016
The company said that during the third quarter of the recent fiscal, the revenue pertaining to services and products climbed 109% and reached $21.5 million. In the previous year, this revenue was $10.3 million.
It is vital to note that the revenue for Q3 2016 & 2015 stood at $3.6 million for pay off to license agreement, commercialization and development with Roche Diagnostics. In the Q3 2016, the gross profit soared to climb $12.6 million. This led to company’s gross margin to increase $6.1 million at 50.3%.
The reason for rising revenue and increase n margin and profit can be attributed to company’s sale of SequelTM System. This system was launched back in 2015. This system was developed while the company was still in alliance with Roche Diagnostics.
Pacific upset with Roche’s decision to terminate agreement
It is important to note that the decision to terminate the agreement was that of Roche Diagnostics. Meanwhile, Pacific Biosciences said that it was looking forward to explore further opportunities in the sequencing and clinical research market.
The company also said that it is in the better driving position to grow its business. It said that the company was expecting its revenue growth from 55% and 65% in comparison to the previous year. By the end of next year, it said, that the targeted revenue growth is 40% to 60%. What lies ahead is yet to be seen, but for now, Pacific seems to be in a stronger position.