Pacific Biosciences of California, Inc. (PacBio) reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the three months amounting to $39.967 million, down 28% from $55.691 million in the same period of 2023. Product revenue also fell sharply, decreasing 32% to $35.296 million compared to $51.562 million a year earlier. The decline in instrument revenue was particularly pronounced, dropping 52% to $16.788 million, attributed to a decrease in sales of Revio systems.

For the nine months ended September 30, 2024, total revenue was $114.790 million, a decrease of 19% from $142.164 million in the prior year. The company reported a net loss of $60.725 million for the quarter, an improvement from a net loss of $66.869 million in the same quarter of 2023. However, the nine-month net loss increased to $312.222 million, up from $224.717 million in the previous year, primarily due to a $93.2 million goodwill impairment charge and restructuring costs.

Total assets decreased to $1.450 billion as of September 30, 2024, down from $1.746 billion at the end of 2023. Cash and cash equivalents also saw a significant decline, falling to $77.982 million from $179.911 million. The company’s total stockholders’ equity decreased to $453.122 million, down from $701.304 million at the end of 2023.

In terms of strategic developments, PacBio completed the acquisition of Apton Biosystems, Inc. in August 2023 for $95.3 million, which included issuing 6.121 million shares of common stock. The acquisition is expected to enhance PacBio's technology offerings, although it has also led to contingent liabilities related to revenue milestones.

The company has initiated restructuring efforts aimed at reducing annualized operating expenses, which included workforce reductions and exiting its San Diego office. Restructuring charges totaled approximately $24.7 million for the nine months ended September 30, 2024.

Looking ahead, PacBio aims to improve commercial execution for its Revio and Onso platforms and continue developing its Vega benchtop long-read sequencing system. However, the company faces challenges such as longer sales cycles, funding uncertainties, and competitive pressures in the nucleic acid sequencing market.