Sunday 5 July 2020

Illumina (ILMN) - Part 2

Illumina is a company specialising in genomics and strives to allow customers to read and understand genetic variations. They help provide research and also clinical services to customers. I would say that it is a pretty niche industry where R&D really plays a huge part in the company's development.

Business Model

Their business mainly consist of 2 genomic technologies, sequencing and microarrays. Sequencing which is a more deep analysis of genomes and targeted DNA region is not fully known while microarrays are for discovery in common variations and when quick answers are required.

Sequencing accounts for about 88% of the revenue while microarrays account for about 12% of it's revenue.


Gross profit and revenue was good in first 3 months of 2020 but net income drops compared to 2019 as total operating expense increases.

Free cash flow is also looking good.

Overall outlook and my opinions

Overall, for me, genomics and DNA is really such a niche industry and I don't think I will be interested as their business model and services they provide are really something that I will need to do further research into before I can understand.

If you are someone who works or understand the life sciences industry, I would think that you will be able to make a more informed decision as the business model and clinical applications would be more relevant to you.

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