Pacific Biosciences of California, Inc. (a.k.a. PacBio) is an American biotechnology company founded in 2004 that develops and manufactures systems for gene sequencing and some novel real time biological observation. PacBio has two principal sequencing platforms: single-molecule real-time sequencing (SMRT), based on the properties of zero-mode waveguides and sequencing by binding (SBB) chemistry, which uses native nucleotides and scarless incorporation for DNA binding and extension.3 Its products include Sequel IIe and Revio.1Wikipedia text CC BY-SA 4.0
Pacific Biosciences of California, Inc. (a.k.a. PacBio) is an American biotechnology company founded in 2004 that develops and manufactures systems for gene sequencing and some novel real time biological observation. PacBio has two principal sequencing platforms: single-molecule real-time sequencing (SMRT), based on the properties of zero-mode waveguides and sequencing by binding (SBB) chemistry, which uses native nucleotides and scarless incorporation for DNA binding and extension.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Cost of revenueResearch and developmentSelling, general and admin
Cost of revenue32¢$114.2M
Research and development28¢$97.3M
Selling, general and admin40¢$141.5M
Income tax0¢$318.0K
Out of $160.0M in revenue.9 The company lost money this year.
Financial statements
Revenue101112139$160.0M in 2025+76% since 2019Gross profit101112139$45.8M in 2025+32% since 2019Operating income101112139-$553.9M in 2025+451% since 2019Net income101112139-$546.4M in 2025+549% since 2019
Revenue1415$39.0M in Q2 FY2026+5% since Q1 FY2026Gross profit1415$12.6M in Q2 FY2026−2% since Q1 FY2026Operating income1415-$44.6M in Q2 FY2026+434% since Q1 FY2026Net income1415-$44.7M in Q2 FY2026+441% since Q1 FY2026
Every line of the income statement as filed: the last 3 fiscal years, latest first.9
Period ending
2025-12-31
2024-12-31
2023-12-31
Total revenue
$160.0M
$154.0M
$200.5M
Amortization of acquired intangible assets
$4.9M
$9.4M
$2.0M
Loss on purchase commitment
$4.2M
$998.0K
$3.4M
Total cost of revenue
$114.2M
$116.7M
$147.7M
Gross profit
$45.8M
$37.3M
$52.8M
Research and development
$97.3M
$134.9M
$187.2M
Sales, general and administrative
$141.5M
$175.0M
$169.8M
Impairment charges
$15.0M
$184.5M
$0
Merger-related expenses
$0
$0
$9.0M
Amortization of acquired intangible assets
$364.5M
$18.0M
$6.2M
Change in fair value of contingent consideration
-$18.7M
-$850.0K
$15.1M
Total operating expense
$599.6M
$511.6M
$387.2M
Operating loss
-$553.9M
-$474.3M
-$334.5M
Loss on extinguishment of debt
$0
$0
-$2.0M
Gain on debt restructuring
$0
$154.4M
$0
Interest expense
-$7.0M
-$13.4M
-$14.3M
Other income, net
$14.8M
$23.8M
$32.7M
Loss before income taxes
-$546.1M
-$309.5M
-$318.2M
Income tax provision (benefit)
$318.0K
$316.0K
-$11.4M
Net loss
-$546.4M
-$309.9M
-$306.7M
Unrealized gain on investments
$35.0K
$203.0K
$5.0M
Comprehensive loss
-$546.3M
-$309.6M
-$301.8M
Basic (in usd per share)
-$1.82
-$1.13
-$1.21
Diluted (in usd per share)
-$1.82
-$1.59
-$1.21
Basic (in shares)
300.0M shares
274.5M shares
253.6M shares
Diluted (in shares)
300.0M shares
288.4M shares
253.6M shares
No quarter-by-quarter statement was filed.
Total assets16101112139$784.1M in 2025+430% since 2019Total liabilities16101112139$778.7M in 2025+737% since 2019Shareholders’ equity1112139$5.3M in 2025−90% since 2019Cash101112139$63.7M in 2025+115% since 2019Long-term debt171011$896.7M in 2022+5550% since 2019
Total assets1415$751.9M in Q2 FY2026−4% since Q1 FY2025Total liabilities1415$785.1M in Q2 FY2026+1% since Q1 FY2025Shareholders’ equity1415-$33.2M in Q2 FY2026Cash1415$61.0M in Q2 FY2026−4% since Q1 FY2025
Every line of the balance sheet as filed: the last 5 fiscal years (annual) or 6 quarters (quarterly), latest first.9
Period ending
2025-12-31
2024-12-31
2023-12-31
2023-01-31
2022-12-31
Cash and cash equivalents
$63.7M
$55.4M
$179.9M
Investments
$215.8M
$334.6M
Accounts receivable, net
$35.4M
$27.5M
Inventory, net
$49.3M
$58.8M
Prepaid expenses and other current assets
$10.8M
$18.8M
Short-term restricted cash
$20.0K
$690.0K
Total current assets
$375.1M
$495.7M
Property and equipment, net
$24.1M
$30.5M
Operating lease right-of-use assets, net
$41.7M
$16.1M
Long-term restricted cash
$1.5M
$1.5M
Intangible assets, net
$15.1M
$389.6M
Goodwill
$317.8M
$317.8M
Other long-term assets
$8.8M
$9.3M
Total assets
$784.1M
$1.3B
Accounts payable
$20.8M
$16.6M
Accrued expenses
$33.6M
$22.6M
Deferred revenue, current
$15.9M
$13.9M
Operating lease liabilities, current
$448.0K
$10.0M
Other liabilities, current
$2.0M
$3.2M
Total current liabilities
$72.8M
$66.3M
Deferred revenue, non-current
$3.9M
$5.9M
Contingent consideration liability, non-current
$0
$18.7M
Operating lease liabilities, non-current
$56.6M
$14.9M
Convertible senior notes, net, non-current
$645.4M
$647.5M
Other liabilities, non-current
$0
$546.0K
Total liabilities
$778.7M
$753.9M
Preferred stock
$0
$0
Common stock
$302.0K
$294.0K
Additional paid-in capital
$2.7B
$2.7B
Accumulated other comprehensive income
$457.0K
$422.0K
Accumulated deficit
-$2.7B
-$2.1B
Total stockholders equity
$5.3M
$506.6M
$701.3M
$562.9M
Total liabilities and stockholders equity
$784.1M
$1.3B
Preferred stock, par value (in dollars per share)
$0.00
$0.00
Preferred stock, shares authorized (in shares)
50.0M shares
50.0M shares
Preferred stock, shares issued (in share)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in dollars per share)
$0.00
$0.00
$0.00
Common stock, shares authorized (in shares)
1.0B shares
1.0B shares
Common stock, shares issued (in shares)
302.0M shares
294.4M shares
Common stock, shares outstanding (in shares)
302.0M shares
294.4M shares
Period ending
2025-12-31
2024-12-31
2023-12-31
2023-01-31
2022-12-31
2010-12-31
Cash and cash equivalents
$63.7M
$55.4M
$179.9M
Investments
$215.8M
$334.6M
Accounts receivable, net
$35.4M
$27.5M
Inventory, net
$49.3M
$58.8M
Prepaid expenses and other current assets
$10.8M
$18.8M
Short-term restricted cash
$20.0K
$690.0K
Total current assets
$375.1M
$495.7M
Property and equipment, net
$24.1M
$30.5M
Operating lease right-of-use assets, net
$41.7M
$16.1M
Long-term restricted cash
$1.5M
$1.5M
Intangible assets, net
$15.1M
$389.6M
Goodwill
$317.8M
$317.8M
Other long-term assets
$8.8M
$9.3M
Total assets
$784.1M
$1.3B
Accounts payable
$20.8M
$16.6M
Accrued expenses
$33.6M
$22.6M
Deferred revenue, current
$15.9M
$13.9M
Operating lease liabilities, current
$448.0K
$10.0M
Other liabilities, current
$2.0M
$3.2M
Total current liabilities
$72.8M
$66.3M
Deferred revenue, non-current
$3.9M
$5.9M
Contingent consideration liability, non-current
$0
$18.7M
Operating lease liabilities, non-current
$56.6M
$14.9M
Convertible senior notes, net, non-current
$645.4M
$647.5M
Other liabilities, non-current
$0
$546.0K
Total liabilities
$778.7M
$753.9M
Preferred stock
$0
$0
Common stock
$302.0K
$294.0K
Additional paid-in capital
$2.7B
$2.7B
Accumulated other comprehensive income
$457.0K
$422.0K
Accumulated deficit
-$2.7B
-$2.1B
Total stockholders equity
$5.3M
$506.6M
$701.3M
$562.9M
Total liabilities and stockholders equity
$784.1M
$1.3B
Preferred stock, par value (in dollars per share)
$0.00
$0.00
$0.00
Preferred stock, shares authorized (in shares)
50.0M shares
50.0M shares
50.0M shares
Preferred stock, shares issued (in share)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in dollars per share)
$0.00
$0.00
$0.00
$0.00
Common stock, shares authorized (in shares)
1.0B shares
1.0B shares
1.0B shares
Common stock, shares issued (in shares)
302.0M shares
294.4M shares
Common stock, shares outstanding (in shares)
302.0M shares
294.4M shares
Cash from operations101112139-$111.2M in 2025+42% since 2019Capital spending101112139$2.7M in 2025−4% since 2019Free cash flow101112139-$113.9M in 2025+40% since 2019
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.9
Period ending
2025-12-31
2024-12-31
2023-12-31
Net loss
-$546.4M
-$309.9M
-$306.7M
Depreciation
$13.0M
$13.8M
$11.5M
Amortization of intangible assets
$369.4M
$27.4M
$8.3M
Amortization of right-of-use assets
$4.0M
$12.2M
$6.8M
Share-based compensation expense
$41.7M
$71.0M
$72.1M
Impairment charges
$15.0M
$184.5M
$0
Merger-related compensation expense
$0
$0
$3.4M
Loss on extinguishment of debt
$0
$0
$2.0M
Gain on debt restructuring
$0
-$154.4M
$0
Accretion of discount and amortization of premium on marketable securities, net
-$4.4M
-$13.0M
-$12.8M
Change in fair value of contingent consideration
-$18.7M
-$850.0K
$15.1M
Inventory provision
$9.6M
$4.6M
$10.6M
Deferred income taxes
-$546.0K
-$205.0K
-$11.4M
Other
$1.7M
-$628.0K
$1.1M
Accounts receivable, net
-$7.9M
$9.1M
-$17.8M
Inventory, net
-$1.4M
-$8.3M
-$13.8M
Prepaid expenses and other assets
$8.5M
$2.2M
-$9.0M
Accounts payable
$2.5M
$1.4M
$206.0K
Accrued expenses
$3.2M
-$26.3M
$13.1M
Deferred revenue
$101.0K
-$2.1M
-$10.4M
Operating lease liabilities
$723.0K
-$11.9M
-$8.8M
Contingent consideration liability
$0
$0
-$14.9M
Other liabilities
-$1.2M
-$4.6M
$2.4M
Net cash used in operating activities
-$111.2M
-$206.1M
-$259.2M
Purchase of property and equipment
-$2.7M
-$6.2M
-$8.8M
Purchase of intangible assets
-$5.0M
$0
$0
Cash paid for purchases of acquired entities, net of cash acquired
$0
$0
-$102.0K
Purchase of investments
-$216.9M
-$498.6M
-$756.6M
Sales of investments
$0
$34.9M
$595.0K
Maturities of investments
$340.1M
$594.0M
$769.5M
Net cash provided by investing activities
$115.4M
$124.0M
$4.6M
Proceeds from issuance of common stock under equity offerings, net of issuance costs
$0
$0
$189.2M
Proceeds from issuance of common stock from equity plans
$3.4M
$7.7M
$15.3M
Payment of debt issuance costs
$0
$0
-$7.4M
Payment of contingent consideration
$0
$0
-$86.4M
Payments made in conjunction with convertible notes exchange
$0
-$50.2M
$0
Notes payable principal payoff
$0
-$490.0K
-$1.8M
Net cash provided by (used in) financing activities
$3.4M
-$43.0M
$108.9M
Net increase (decrease) in cash, cash equivalents, and restricted cash
$7.7M
-$125.0M
-$145.7M
Interest paid
$8.3M
$14.8M
$15.7M
Right-of-use asset and liability additions and modifications
Pacific Biosciences sits at the top of its group. 13 entities, 8 countries on record. Switch between the flow chart and the network, and select any entity to see its details.
Major holders of Pacific Biosciences
ARK Investment Management LLCFiled SCHEDULE 13G/A on Pacific Biosciences, latest Aug 14, 2026 (6 filings since Feb 9, 2022)
VANGUARD GROUP INCFiled SCHEDULE 13G/A on Pacific Biosciences, latest Mar 27, 2026 (7 filings since Feb 10, 2022)
MADRONE CAPITAL PARTNERS, LLCFiled SCHEDULE 13G/A on Pacific Biosciences, latest Nov 14, 2025 (6 filings since Jun 1, 2022)
Pacific Biosciences International LLC Subsidiary · Delaware, United States
Pacific Biosciences Japan GK Subsidiary · Japan
Pacific Biosciences UK, Ltd. Subsidiary · United Kingdom
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; subsidiaries, stakes and holdings from Wikidata (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What Pacific Biosciences reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Our corporate headquarters, research and development facilities, and manufacturing and distribution centers are located in Menlo Park, California, where we lease approximately 180,200 square feet under a lease expiring on April 30, 2034. Additionally, our European headquarters is located in London, where we lease approximately 7,300 square feet under a lease expiring November 30, 2026. Including these leases, we lease approximately 189,600 square feet globally.
We believe that our existing facilities, together with suitable additional or alternative space available on commercially reasonable terms, will be sufficient to meet our needs.
The company was founded based on research done at Cornell University that combined semiconductor processing and photonics with biotechnology research. Three graduate students in the lab of Professors Watt W. Webb — Jonas Korlach — and Harold Craighead — Steve Turner and Mathieu Foquet — became the first employees.
It began under the name Nanofluidics, Inc. The company raised nearly US$400,000,000 in six rounds of primarily venture capital financing, making it one of the most capitalized startups in 2010 leading up to their public offering in October of that year. Key investors included Mohr Davidow Ventures, Kleiner, Perkins, Caufield & Byers, Alloy Ventures, and Wellcome Trust.
The company's first commercial product, the PacBio RS, was sold to a limited set of customers in 2010 and was commercially released in early 2011. A subsequent version of the sequencer called the PacBio RS II was released in April 2013.
Leadership
In 2004, Kleiner Perkins entrepreneur-in-residence Hugh Martin became CEO. On 6 January 2012 board member Michael Hunkapiller, PhD assumed the role of CEO. Hunkapiller retired in September 2020, and was replaced by chairman of the board Christian Henry. Henry was a former executive VP and chief commercial officer of Illumina before joining the board at PacBio in July 2018.
Illumina: attempted acquisition
On 1 November 2018, Illumina, Inc. agreed to purchase PacBio for US$1.2 billion in cash. The deal was expected to close in the fourth quarter of 2019. In December 2019, the Federal Trade Commission sued to block the acquisition. The deal was abandoned with an announcement on 2 January 2020. Illumina further agreed to pay Pacific Biosciences a $98 million US termination fee plus previously agreed upon deal extension payments of $22 million US in February and $6 million US in March 2020.
The company's first scientific instrument, called the PacBio RS, was released to a limited set of customers in late 2010., with full commercial release in early 2011. Sequencing provider GATC Biotech was selected by Pacific Biosciences as its first European service provider in late 2010. A new version of the sequencer was released in April 2013 it produced longer sequence reads and higher throughput than the original RS instrument. The RS instrument will officially be supported until the end of 2021. In September 2015, the company released a new sequencing instrument, the Sequel System, with increased sequencing capacity at a smaller size and lower price compared to the PacBio RS II. Subsequently, in October 2022, PacBio launched a new sequencing system, which can sequence 1,300 human genomes per year as compared to 86 per year of the previous PacBio sequencing machines.
Reagents and SMRT Cells
To use either instrument, customers must also purchase reagent packs for DNA preparation and sequencing and small consumables called "SMRT Cells." Cells for early forms of the sequencer are slightly less than one-centimeter square and contains tens of thousands of zero-mode waveguides, whereas newer systems have a higher density of cells and contain 25 million zero-mode waveguides (ZMWGs), allowing for faster DNA sequencing.
Software and applications
Their secondary analysis bioinformatics product for the RS, called “SMRT Analysis”, was open source. For the Sequel system the secondary analysis software was reorganized as the "SMRT Link" application. In 2013, the company released new bioinformatics tools for automated genome assembly (HGAP) and finishing (Quiver).
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
343 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 60 major events, 138 insider forms, 40 large holders, 2 private raises, 83 other. The latest 20:
63 open-market trades by officers, directors and large owners since October 2021: 1 buys and 62 sales. Grants, option exercises and gifts are left out.
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
Private offerings the company reported to the SEC on Form D.
Oct 4, 2023Raised $84.8 million in a private offering of equityForm D: 165 investors so farForm D
Aug 2, 2023Raised $85 million in a private offering of equityForm D: 47 investors so farForm D
Held by these funds
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
13F reports cover disclosed long positions in U.S. stocks only.
SEC filer profile
How Pacific Biosciences is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.
Name on EDGARPACIFIC BIOSCIENCES OF CALIFORNIA, INC.2
From the cover page of the 10-K filed Feb 25, 2026 (Section 12(b) of the Exchange Act).18
Risk factors and legal proceedings
The risks Pacific Biosciences names in Item 1A of its 10-K filed Feb 25, 2026: 69 risks under these headings, as written.18
The commercialization and sales of our current or future products may be unsuccessful or less successful than anticipated. While we plan to continue pursuing new products and expanding into adjacent markets, we have limited experience in managing and selling multiple products and, as a result, may face challenges selling in new markets and fail to successfully carry out these initiatives, which may adversely impact our business, financial condition or results of operation.
We have incurred losses to date, and we expect to continue to incur significant losses as we develop our business and we may never achieve profitability.
Expense reduction initiatives could be disruptive to our operations and adversely affect our results of operations and financial condition, and we may not realize some or all of the anticipated benefits of these initiatives, whether in the time frame anticipated or at all.
We are not cash flow positive and may not have sufficient cash to make required payments under the terms of our debt or fund our long-term planned operations.
The disposition of our assets related to our short-read DNA sequencing technology and related clustering, sequencing reagent, and detection technologies could have a material adverse effect on our business, financial condition and results of operations.
We have made acquisitions and, in the future, may continue to acquire businesses, technologies or assets, form joint ventures or make other strategic investments with companies that could adversely affect our operating results, dilute our stockholders’ ownership, or cause us to incur debt or significant expense.
If we are unable to successfully develop and timely manufacture our current and future products our business may be adversely affected.
Our research and development efforts may not result in the benefits that we anticipate, and our failure to successfully market, sell, and commercialize our current and future products could have a material adverse effect on our business, financial condition and results of operations.
We must successfully manage new product introductions and transitions and the development of acquired technologies, for which we may incur significant costs during these transitions and development, and these efforts may not result in the benefits we anticipate.
Our business may be adversely affected by epidemics or other public health emergencies.
Significant changes to our leadership team and the resulting management transitions might harm our future operating results.
We depend on the continuing efforts of our senior management team and other key personnel. If we lose members of our senior management team or other key personnel or are unable to successfully retain, recruit and train qualified scientists, engineers, sales personnel and other employees, our ability to maintain, develop and commercialize our products could be harmed and we may be unable to achieve our goals.
The other 57 risks
Our success is highly dependent on our ability to further penetrate nucleic acid sequencing applications as well as on the growth and expansion of the demand for our products. If our products fail to achieve and sustain sufficient market acceptance, we will not generate expected revenue and our business may not succeed.
We rely on other companies for the manufacture of certain of our products, components and sub-assemblies and intend to outsource additional sub-assemblies in the future, some of which are sole sources. We may not be able to successfully scale the manufacturing process necessary to build and test multiple products on a full commercial basis, which could materially harm our business.
We may be unable to consistently manufacture our instruments and consumables, including SMRT Cells and reagents, to the necessary specifications or in quantities necessary to meet demand at an acceptable cost or at an acceptable performance level.
Rapidly changing technology in life sciences and research diagnostics could make our products obsolete unless we continue to develop, manufacture and commercialize new and improved products and pursue new opportunities.
The size of the markets for our products, including our Revio and Vega instruments, may be smaller than estimated, and new market opportunities may not develop as quickly as we expect, or at all, limiting our ability to successfully sell our products.
Increased market adoption of our products by customers may depend on the availability of sample preparation and informatics tools, some of which may be developed by third parties.
We operate in a highly competitive industry and if we are not able to compete effectively, our business and operating results will likely be harmed.
We may be unable to successfully increase sales of our current products or market and sell our future products.
Large purchases by a limited number of customers represent a significant portion of our revenue, and any loss or delay of expected purchases has resulted, and in the future could result, in material quarter-to-quarter fluctuations of our revenue or otherwise adversely affect our results of operations.
Our products are highly complex, have recurring support requirements and could have unknown defects or errors, which may give rise to claims against us or divert application of our resources from other purposes.
A significant portion of our sales depends on customers’ spending budgets that may be subject to significant and unexpected variation which could have a negative effect on the demand for our products.
We may not be able to convert our orders in backlog into revenue.
Our sales cycles are unpredictable and lengthy, which makes it difficult to forecast revenue and may increase the magnitude of quarterly or annual fluctuations in our operating results.
Because some of our customers and suppliers are based in China, our business, financial condition and results of operations could be adversely affected by the political and economic tensions between the United States and China.
We face significant risks associated with doing business with Taiwanese suppliers and manufacturers due to the tense relationship between Taiwan and mainland China.
Our operating results fluctuate from quarter to quarter and year over year, which makes our future results difficult to predict and could negatively impact the market price of our common stock.
Our ability to use net operating losses and certain other tax attributes to offset future taxable income may be subject to substantial limitations.
Changes in tax law and differences in interpretation of tax laws and regulations could adversely impact our business and financial condition.
Our facilities in California are located near earthquake faults, and the occurrence of an earthquake or other catastrophic disaster could cause damage to our facilities and equipment, which could require us to cease or curtail operations.
Failure to secure patent or other intellectual property protection for our products and improvements to our products may reduce our ability to maintain any technological or competitive advantage over our current and potential competitors.
Variability in intellectual property laws may adversely affect our intellectual property position.
Some of the intellectual property that is important to our business is owned by other companies or institutions and licensed to us, and changes to the rights we have licensed may adversely impact our business.
The measures that we use to protect the security of and enforce our intellectual property and other proprietary rights may not be adequate, which could result in the loss of legal protection for, and thereby diminish the value of, such intellectual property and other rights.
Our intellectual property may be subject to challenges in the United States or foreign jurisdictions that could adversely affect our intellectual property position.
Some of our technology is subject to “march-in” rights by the U.S. government.
We are involved in legal proceedings to enforce our intellectual property rights.
We have been, are currently, and could in the future be, subject to legal proceedings with third parties who may claim that our products infringe or misappropriate their intellectual property rights.
We have not yet registered some of our trademarks in all of our potential markets, and failure to secure those registrations could adversely affect our business.
Our use of “open source” software could adversely affect our ability to sell our products and subject us to possible litigation.
We are, and may become, subject to governmental regulations that may impose burdens on our operations, and the markets for our products may be narrowed.
Our products could become subject to government regulation as medical devices by the U.S. Food and Drug Administration or other domestic and international regulatory agencies even if we do not elect to seek regulatory clearance or approval to market our products for diagnostic purposes, which could increase our costs and impede or delay our commercialization efforts, thereby materially and adversely affecting our business and results of operations.
To the extent we elect to label and promote any of our products as medical devices, we would be required to obtain prior approval or clearance by the FDA or comparable foreign regulatory authority, which could take significant time and expense and could fail to result in a marketing authorization for the intended uses we believe are commercially attractive. Obtaining marketing authorization in one jurisdiction does not mean that we will be successful in obtaining marketing authorization in other jurisdictions where we conduct business.
Enhanced trade tariffs, import restrictions, export restrictions, or other trade barriers may materially harm our business.
Our international business could expose us to business, regulatory, political, operational, financial, and economic risks associated with doing business outside of the United States.
Our operations involve the use of hazardous materials, and we must comply with environmental, health and safety laws, which can be expensive and may adversely affect our business, operating results and financial condition.
Ethical, legal, privacy, data protection and social concerns or governmental restrictions surrounding the use of genetic information could reduce demand for our technology.
Regulations related to conflict minerals has caused us to incur, and will continue to cause us to incur, additional expenses and could limit the supply and increase the costs of certain materials used in the manufacture of our products.
The price of our common stock has been, is, and may continue to be, highly volatile, and you may be unable to sell your shares at or above the price you paid to acquire them.
Sales of substantial amounts of our common stock in the public markets, or the perception that such sales might occur, could reduce the market price that our common stock might otherwise attain and may dilute your voting power and your ownership interest in us.
Concentration of ownership by our principal stockholders may result in control by such stockholders of the composition of our board of directors.
Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us, which may be beneficial to our stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.
Our amended and restated bylaws designate a state or federal court located within the State of Delaware as the exclusive forum for certain stockholder litigation matters, and also provide that the federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, each of which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers, stockholders, or employees.
Our large number of authorized but unissued shares of common stock may potentially dilute existing stockholders’ stockholdings.
We do not intend to pay dividends for the foreseeable future.
We may not have the ability to raise the funds necessary to settle conversions of the Notes in cash or to repurchase the Notes upon a fundamental change, and our future debt may contain limitations on our ability to pay cash upon conversion or repurchase of the Notes.
The Side Letter to our 2029 Notes imposes operating restrictions on us.
If the Notes are converted, it may adversely affect our financial condition and operating results.
Unfavorable global economic or political conditions could adversely affect our business, financial condition or results of operations.
Delivery of our products could be delayed or disrupted by factors beyond our control, and we could lose customers as a result.
Doing business internationally creates operational and financial risks for our business.
If we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired, which would adversely affect our business and our stock price.
Our business could be negatively impacted by changes in the United States political environment.
Disruption of critical information technology systems or material breaches in the security of our systems could harm our business, customer relations and financial condition.
Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.
Our use of artificial intelligence and machine learning technologies may result in reputational harm or liability.
We are currently subject to, and may in the future become subject to additional, U.S. federal and state laws and regulations imposing obligations on how we collect, store and process personal information. Our actual or perceived failure to comply with such obligations could harm our business. Ensuring compliance with such laws could also impair our efforts to maintain and expand our future customer base, and thereby decrease our revenue.
Increased scrutiny of our environmental, social or governance responsibilities may result in additional costs and risks, and may adversely impact our reputation, employee retention, and willingness of customers and suppliers to do business with us.
Legal proceedings
On September 26, 2019, Personal Genomics of Taiwan, Inc. (“PGI”) filed a complaint in the U.S. District Court for the District of Delaware against us for patent infringement (C.A. No. 19-cv-1810) (the “PGI District Court matter”). The matter from this complaint is based on PGI’s U.S. Patent No. 7,767,441 (the “‘441 Patent”). The complaint alleges that our Sequel systems and Sequel II systems infringe the ‘441 Patent. The complaint seeks unspecified monetary damages and an order enjoining us from infringing the ’441 Patent. On November 20, 2019, we filed our answer to the complaint, denying infringement and seeking declaratory judgements of non-infringement and invalidity of the ‘441 Patent.
On June 22, 2020, we filed a petition requesting institution of an inter-partes review ("IPR") to the Patent Trial and Appeals Board (the “Board”) at the United States Patent Office (IPR2020-01163) requesting the Board to find a set of claims in the ‘441 Patent invalid. On June 27, 2020, we filed a second petition (IPR2020-01200) requesting institution of an IPR requesting the Board to find another set of claims in the ‘441 Patent invalid. The two petitions (the “PacBio IPR Petitions”) together asserted that all of the claims relevant to the PGI complaint are invalid. On January 19, 2021, the Board ordered that both PacBio IPR Petitions be instituted on all grounds presented. On January 18, 2022, the Board issued decisions on the two IPRs. In one IPR, all challenged claims were found unpatentable, including PGI’s core device claims. In the second IPR, the Board did not find the disputed claims unpatentable. PGI and PacBio each appealed to the U.S. Court of Appeals for the Federal Circuit, which affirmed both IPR decisions on January 9, 2024.
