About Illumina, Inc.
illumina is the top-ranking maker of next-generation sequencing tools used by life sciences and drug researchers to isolate and analyze genes. Its systems include the machinery and the software used to sequence pieces of DNA and RNA, as well as the means to put them through large-scale testing of genetic variation and biological function. Its proprietary BeadArray technology uses microscopic glass beads that can carry samples through the genotyping process. The tests allow medical researchers to determine what genetic combinations are associated with various diseases, enabling faster diagnosis, better drugs, and individualized treatment. Customers include pharma and biotech companies, research centers, and academic institutions. More than half of Illumina's revenue comes from US.
Illumina sells three types of products: Sequencing, Arrays, and Consumables.
Customers use Illumina's sequencing products to determine the order of nucleotide bases (A, C, G, or T) in a DNA sample. The segment, about 85% of revenue, produces sequencing platforms used for whole-genome, de novo, exome, and RNA sequencing, and targeted resequencing of specific gene regions and genes.
Customers use the company's Array products, about 15% of revenue, to identify genetic markers that could signal disease and other features. Array applications include DNA and RNA analysis applications, including SNP genotyping, CNV analysis, g expression analysis, and methylation analysis.
Consumables are use-once products deployed to carry out functions of the sequencing and array products. Sold through those product lines, consumables include reagents, flow cells, and microarrays. Consumables account for about 70% of revenue.
Illumina also provides tools and services concerning reproductive health, including preimplantation genetic screening and diagnosis, noninvasive prenatal testing, and neonatal health testing.
Based in California, Illumina gets about 55% of revenue from sales in the US. Other key areas include the Europe, the Middle East and Africa region, which brings about 25% of sales, and the Greater China (China, Taiwan, and Hong Kong) and the Asia/Pacific regions, which account for about 10% of sales each.
The company operates manufacturing facilities in the US and Singapore.
Sales and Marketing
Illumina's customers include genomic research centers, universities, government labs, hospitals, and reference laboratories. The company also sells to private sector clients that include pharmaceutical companies, biotech firms, agri-genomics (livestock genetics testing) firms, commercial molecular diagnostic companies, and consumer genomics firms. It sells through life-science distributors in certain markets in Europe, Latin America, the Middle East, the Asia/Pacific region, and South Africa.
Illumina's advertising costs were $28 million, $38 million, and $30 million in 2019, 2018, and 2017, respectively.
Illumina's sales and profits have grown robustly in the past five years, with revenue rising 60% and net income rocketing 116% higher as gene sequencing has grown in popularity and accessibility.
Revenue increased 6% in 2019 to $3.5 billion compared to $3.3 billion in 2018 primarily due to increased sequencing consumables revenue and revenue from development and licensing agreements, partially offset by a decline in microarray revenue due to weakness in the direct-to-consumer (DTC) market.
Higher revenue drove net income 21% higher to $1.0 billion in 2019 from $826 million in 2018.
Illumina's cash and equivalents increased $898 million to $2.0 billion in 2019. Cash flow from operations was $1.1 billion, investing activities provided $745 million, and financing activities used $897 million.
By empowering genetic analysis and facilitating a deeper understanding of genetic variation and function, their tools advance disease research, drug development, and the creation of molecular diagnostic tests. The company believe that this will trigger a fundamental shift in the practice of medicine and health care, and that the increased emphasis on preventive and predictive molecular medicine will usher in the era of precision health care.
Illumina's target markets are characterized by rapid technological change, evolving industry standards, changes in customer needs, existing and emerging competition, strong price competition, and frequent new product introductions. Accordingly, their continued growth depends on developing and commercializing new products and services, including improving their existing products and services, in order to address evolving market requirements on a timely basis.
Mergers and Acquisitions
In 2020, Illumina acquired Netherlands- based BlueBee, a cloud-based software company that provides genomics analysis solutions for research and clinical customers. The integration of BlueBee's capabilities into Illumina's cloud portfolio will give users the flexibility to run their own custom analyses or access industry leading options such as the DRAGEN Bio-IT Platform, streamlining data processing and increasing their operational efficiency. The terms of the acquisition were not disclosed.
5200 Illumina Way
San Diego, CA 92122-4616
Phone: 1 (858) 202-4500
Employer Type: Publicly Owned
Stock Symbol: ILMN
Stock Exchange: , NASDAQ
President and CEO: Francis deSouza
Executive Chairman: Jay T. Flatley
EVP Operations, Product, and Strategy: Omead Ostadan
Employees (This Location): 277
Employees (All Locations): 7,700
San Diego, CA
Foster City, CA
Mira Loma, CA
San Leandro, CA