BURLINGTON, Mass. - Azenta, Inc. (NASDAQ:AZTA) announced today the introduction of a new long-read Whole Genome Sequencing (WGS) test, marking the company as the first to receive regulatory approval in the United States for such a clinical application. The test uses the PacBio Revio sequencer for HiFi sequencing reads, which are capable of covering genome regions that short-read methods cannot, enhancing the precision in detecting complex genomic alterations often associated with rare diseases.
The test is performed in Azenta Life Sciences' GENEWIZ laboratory, which is CLIA certified and CAP accredited. This advancement in sequencing technology is expected to improve the accuracy of genetic diagnoses and potentially aid in the development of targeted therapies and more effective clinical trials.
Dr. Ginger Zhou of Azenta Life Sciences emphasized the significance of this advancement, stating that it allows researchers to uncover genetic nuances that were previously undetectable with conventional methods. Christian Henry, President and CEO of PacBio, also commented on the impact of the Revio's HiFi reads in understanding the complexities of rare diseases.
Azenta's new test underlines the company's role as a leading provider of life sciences solutions, offering a range of services from cold-chain sample management to multiomics services for various institutions globally. The company will be showcasing their Long-Read Whole Genome Sequencing Test at the upcoming American Society of Human Genetics Conference in Denver, CO.
This press release contains forward-looking statements under Section 21E of the Securities Exchange Act of 1934, indicating potential benefits of the new WGS test. However, these statements are subject to risks and uncertainties that could cause actual results to differ from expectations. The company has outlined these risks in its filings with the Securities and Exchange Commission.
The information in this article is based on a press release statement from Azenta.
In other recent news, Azenta Inc. has made significant strides in its business operations. John P. Marotta has been appointed as the new President and CEO, succeeding Dr. Stephen Schwartz who is set to retire but will remain as an advisor. Marotta, with his vast experience in life sciences, medical devices, and diagnostics, is expected to steer the company towards further growth and profitability.
Azenta's recent financial results reveal a strong performance for the third quarter of fiscal year 2024. The company reported a 5% year over year increase in organic revenue and a sequential growth of 9%. This was primarily driven by all segments, particularly sample management solutions, products, and services. Adjusted EBITDA margin expanded to 10.3%, and an operating profit of $4.6 million was reported.
Furthermore, Azenta's balance sheet remains robust with $754 million in cash and equivalents. However, the company has revised its full-year revenue guidance downwards while maintaining its adjusted EBITDA margin and raising non-GAAP EPS guidance. In terms of recent developments, Azenta is committed to a EUR60 million project in the Democratic Republic of Congo and multi-party sample sourcing initiatives. Despite these positive results, the company has closed some sites and plans to close more in the future.
InvestingPro Insights
Azenta's introduction of the first regulatory-approved long-read Whole Genome Sequencing test in the U.S. marks a significant milestone for the company, potentially positioning it at the forefront of genetic diagnostics. This advancement aligns with Azenta's role as a leading provider of life sciences solutions and could impact its financial performance in the coming quarters.
According to InvestingPro data, Azenta's revenue growth stands at 4.5% over the last twelve months as of Q3 2024, with quarterly revenue growth at 4.13%. This moderate growth could see a boost from the new WGS test, especially if it gains traction in the medical research community.
InvestingPro Tips reveal that Azenta holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. These financial strengths could provide the company with the flexibility to invest further in innovative technologies like the long-read WGS test.
However, it's worth noting that Azenta is currently not profitable over the last twelve months, with an operating income margin of -10.4%. The success of the new WGS test could be crucial in improving the company's profitability metrics.
Investors should also be aware that Azenta is trading near its 52-week low, which may present an opportunity for those bullish on the company's prospects. The stock's fair value, based on analyst targets, is estimated at $55 USD, suggesting potential upside from its previous closing price of $41.79 USD.
For a more comprehensive analysis, InvestingPro offers additional tips and insights on Azenta's financial health and market position. There are 8 more InvestingPro Tips available for AZTA, providing a deeper understanding of the company's financial landscape and growth potential.
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