(AOF) – The action of the Illumina genetic sequencing laboratory fell by nearly 15% in pre-market after quarterly results deemed disappointing and below forecasts. The group reported a loss of $535 million, or $3.40 per share, compared to net profit of $187 million, or $1.26 per share, in the same period last year. Revenue reached $1.16 billion, compared to $1.13 billion in the year-ago quarter.
Analysts had forecast earnings of 64 cents per share on revenue of $1.22 billion.
On the guidance side, the company expects full-year 2022 revenue to grow 4% to 5% from fiscal 2021, citing “continued negative currency impact, expansion delays customer labs and macroeconomic conservatism around immediate capital and inventory commitments, including in Greater China.”
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An inevitable race for new blockbusters
The patent for Merck’s star product, the cancer drug Keytruda, which accounts for more than 35% of its sales, expires in 2028. Despite the loss, since 2019, of the patents for its three star products (Avastin, Herceptine, Rituxan) Roche was able to renew its portfolio by bringing new molecules to market. However, the discovery and launch of new drugs are increasingly expensive. AstraZeneca spends about $6 billion a year on R&D in a pharmaceutical industry where the life of a patent only lasts ten to fifteen years. This leads laboratories to withdraw from certain activities. Thus J&J, Pfizer, GSK and, no doubt, Novartis soon prefer to refocus on specialty drugs and abandon any ancillary activity.