After rising nearly 44% yesterday on the announcement of their new LFR technology platform, which improves accuracy and reduces the amount of DNA required for testing, Complete Genomics (NASDAQ: GNOM) share are on the rise again today, based on pre-market activity.
GNOM is at the forefront of outsourcing DNA sequencing, as well as reducing the cost for sequencing and analyzing DNA from the current $3,000-$4,000 per genome to $1,000 per genome. GNOM believes that its LFR technology will accelerate the use of whole genome sequencing by physicians to diagnose and treat their patients. Last month, the company announced that it would explore strategic options, and this new differentiated technology is likely to be attractive to potential larger acquirers in the sector such as Illumina and Life Technologies, or even the clinical laboratories like Quest Diagnostics. GNOM has a 52-week high of $15.60, and therefore, the shares have a lot of room to run from current levels. Expect the shares to continue to strengthen over the coming weeks on take-out speculation.