Meanwhile, Roche's bid provided a windfall to Illumina competitors who are developing genetic sequencing machinery for research labs to study cancer tumors that may assist treatments for individuals as costs and sequencing times come down.
The stocks of Illumina's competitors Life Technologies (LIFE), Pacific Biosciences of California (PACB) and Complete Genomics (GNOM) surged roughly 3%, 15% and 23% respectively. Illumina and its competitors may bring sequencing time horizons down from weeks and even months to just a day, potentially lowering costs enough to make them increasingly affordable for patient care.
Putting aside a potential new bidder for Illumina, Roche's bid could rise on simple valuation concerns. Jefferies analyst Jeffery Holford said in a Jan. 25 note that while Illumina's bid makes strategic sense, the $44.50 price is "opportunistic" and will likely need to be increased. JPMorgan analysts increased their price target for Illumina's shares by 60% to $70 a share, calling the bid too low for a technology leader in an open-ended market like genetic sequencing machinery."We believe the offer price underappreciates the
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