Shares of Pacific Biosciences of California (NASDAQ:PACB) surged 16% on Wednesday after the DNA sequencing leader said it obtained a strategic investment from Japanese technology conglomerate SoftBank Group (OTC:SFTB.Y).
Softbank subsidiary SB Management will purchase $900 million in convertible senior notes that it can convert into PacBio stock at a price of $43.50 per share. The notes mature on Feb. 15, 2028, and pay 1.5% interest annually.
PacBio said the cash will help it broaden its product portfolio and fast-track its commercialization plans. "This strategic investment by SoftBank validates our leadership position in the long-read DNA sequencing market and enables us to further accelerate our growth strategies," PacBio CEO Christian Henry said in a press release.
PacBio is a leader in high-fidelity (HiFi) DNA-sequencing platforms, which produce accurate and complete data that researchers can use to study genetic diseases. The goal is to give doctors a better understanding of how genes contribute to human health, so they can develop more effective treatments for a wide range of genetic disorders.
"We believe that PacBio's HiFi sequencing will be the de facto standard tool for population genomics fundamentally altering the practice of healthcare," SB Management CEO Akshay Naheta said.