Expert thoughts on this for non technical people like me. Thank you.
11 replies (most recent on top)
@mm huh?
Another wave of layoffs.. goodluck!
@gb lmao made me chuckle
“At the same time, we are very much still the only real option in sequencing.”
You might want to take a look around. No we’re not. A lot of arrogance in that statement.
@fh+1jyewqdmp is absolutely right. Illumina is spending ungodly amounts of money on all sorts of niche stuff few people care about and in which we are not well positioned to compete. At the same time, we are very much still the only real option in sequencing.
Soma business is not profitable! It will drag down ILMN margin. We are everything to everyone. We should just focus on core business: sequencing.
We lose so much money on software. We can't compete with all oncology and multiomics companies. We don't have their R&D budget. Take 10X as an example! They have massive budget for both spatial and single cell. We are going downhill full speed with a clueless leadership that has no vision (just operational experience)!
Does Soma still use Agilent arrays? Porting the assay over to either a Beadarray or sequencing platform could recapture some costs. Soma struggled for years and never truly scaled to their potential. Perhaps now they will.
My worry is how would they serve these debts? Someone or something has to pay for these rights? Won’t this affect our bottom line at some point? I am not sure if the revenue brought in by somalogic will offset any negative operating margin pressure from the acquisition and increased head count.
Acquisition definitely makes sense strategically but worried if this would lead to any additional layoffs down the line.
Correct me if I am wrong?
@bc An acquisition can come from equity, debt, or cash. Given the size of this one, it’s probably mostly or entirely the latter. But employee compensation and other operating costs come out of earnings. Big difference. Don’t conflate these two very distinct things. They are treated far differently in accounting terms and viewed very differently by the Street.
Agree it makes sense. Just wonder where the money for this acquisition came from. Well. We all can guess.
Shoulda done this two years ago, but that was a totally different political climate with regard to M&A. Certainly would’ve alleviated some collaboration issues. In any event, it seems like a decent synergy with the current proteomics effort (although OLink back in ‘22 would’ve been so much better even if they have fewer targets).
It never made sense to collaborate with a company who already had a competitive product on the market to come up with a new, competing product just to leverage SBS platforms (especially when Soma’s own competitive product was on arrays). Buying Soma makes more sense.