The Clock Is Ticking Louder As PacBio Must Generate More Revenue And Shrink Its Cash Burn Rate

If you want to know what the market thinks about Pacific Biosciences (PACB) consider this – the sell-side revenue expectations for 2018 are now about 15% lower than they were three months ago, and the share price is more or less flat. It’s not quite that simple, as there have been some large moves (in percentage terms) in that time, but the shares continue to reflect what I regard as a “we’ll believe when we see it” attitude on the part of many investors.

I’ve said in the past that I now regard PacBio as a very speculative stock, and that remains the case. I do believe the company’s technology is valuable and important, but it is clear that commercializing that technology is no easy task. While I would not be at all surprised to see PacBio acquired within the next 12 months, I likewise wouldn’t be surprised if the company is forced to pursue highly dilutive financings to keep the lights on and is eventually strangled by a lack of access to funds and its inability to reach cash-flow breakeven.

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The Clock Is Ticking Louder As PacBio Must Generate More Revenue And Shrink Its Cash Burn Rate