(Reuters) – Illumina said on Tuesday it is partnering with the Broad Institute to develop new kits to enable large-scale gene sequencing using a novel method based on Nobel Prize-winning CRISPR technology.

In a separate partnership with the Broad Institute and Harvard, San Diego-based Illumina will work on research sequencing of single cells and conduct experiments using technology from Fluent BioSciences, a company the company recently acquired.

WHY IT IS IMPORTANT

The partnership between Illumina and the Massachusetts-based Broad Institute – one of the best-known names in CRISPR research – aims to use a new method called PerturbSeq screening to increase gene sequencing volume.

This could both support disease and treatment research and drive Illumina’s growth.

KEY QUOTE

“PerturbSeq has already demonstrated its ability to significantly advance our understanding of healthy gene networks and what goes wrong in the context of disease. We believe it will set the stage for the next revolution in biology,” said Illumina CEO Jacob Thaysen during a presentation.

CONTEXT

There have been significant developments in the gene sequencing industry over the past decade, most notably the discovery of CRISPR, a piece of DNA found in the immune system of bacteria that is now used for genetic editing.

Illumina believes that the partnerships for the new technologies will give the company the boost it needs. The company is struggling with a lack of sales growth due to weak financing opportunities in the biotech sector.

IN NUMBERS

The company expects the partnership to help it deliver double-digit percentage growth in adjusted earnings between 2025 and 2027 and high-single-digit growth in revenue by 2027.

In 2023, the company’s revenue fell 2% to $4.50 billion, while adjusted earnings fell to 86 cents per share from $2.12.

(Reporting by Leroy Leo in Bengaluru; Editing by Shinjini Ganguli)