Pacific Biosciences of California (NASDAQ:PACB) reported that F. Hoffman-La Roche Ltd has elected to terminate deal with them that was related with the advancement and supply of diagnostic offerings based on the firm’s SMRT® technology.
The agreement, which was finalized by the two companies in 2013, provides the alternative for Roche to terminate the deal for any reason with 60 days’ prior notice. Upon cancelation, other than retaining specific non-exclusive rights pertaining to utilizing products already bought from Pacific Biosciences under the deal, Roche will possess no rights to SMRT know-how, and Pacific Biosciences can commercialize products depending on the Sequel™ sequencing base into the clinical research and sequencing industry, directly or with other distribution associates.
Dr. Michael W. Hunkapiller, the CEO of Pacific Biosciences, stated that the Sequel System was advanced during the period of their collaboration deal with Roche and has accomplished all of the marks set forth in their deal. They are proud of their performance and achievements of the Sequel System, which were presented at the recent ASHG yearly conference and PacBio Workshop in Vancouver.
Dr. Hunkapiller continued that the clinical research and sequencing industry and regulatory environment have emerged during the 3 years since they entered into this deal with Roche. While they are dissatisfied with Roche’s choice to terminate the deal, they are familiar with this industry and Roche’s decision does not considerably change their near-term plans for growing their operations to address this market. The long-term objective of this deal was for Roche to follow the in vitro diagnostic industry with regulated, assay-specific assessments depending on the Sequel platform and, in that perspective, Roche was focused on advancing specific targeted assays and more software aspects on the Sequel System.
Pacific Biosciences is all set to immediately pursue prospects in the clinical research and sequencing industry which don’t need the supply of assay-specific kits and they have already noted interest from clients in this market, which they believe presently indicates the majority of this industry.