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Illumina Stock Stumbles in July as GenomeWeb Index Sinks 3 Percent

NEW YORK – The GenomeWeb Index fell nearly 3 percent in July, erasing part of the 11 percent gain it made in June.

The index underperformed the Dow Jones Industrial Average and the Nasdaq, which gained nearly 1 percent and more than 2 percent, respectively, but outperformed the Nasdaq Biotechnology Index, which fell more than 3 percent. Individual stock performance in the GenomeWeb Index was mostly negative as 16 of the 30 stocks saw losses and 13 saw gains. One stock, that of Natera, stayed flat.

The biggest loser in July was Illumina, which saw its shares decline nearly 19 percent. Pacific Biosciences and PerkinElmer were bottom-three performers, each with an 11 percent decline.

Genomic Health took the top spot for gainers with a 25 percent increase in share price. Twist Bioscience (+16 percent) and Invitae (+14 percent) rounded out the top three performers.

Illumina's shares fell after the company reported preliminary second quarter revenues that fell short of the consensus Wall Street estimate of $888 million. The firm also lowered its full year 2019 revenue guidance. Although the Q2 earnings the firm reported two weeks later were slightly higher than projected, Illumina still missed the consensus estimate, as a 6 percent growth in its sequencing sales was offset by a 21 percent decline in microarray revenues.

PacBio's shares continued a steady decline since mid-June, due to a delay in the expected completion date of illumina's acquisition of the firm and concerns by some that the deal may not be completed at all. An ongoing review of the deal by UK regulators has held up the transaction, though the firms said they now expect to close in the fourth quarter.

PerkinElmer, meanwhile, saw its shares decline after it reported Q2 earnings. Revenues in the second quarter grew 3 percent year over year but missed the consensus Wall Street estimate, the company said.

Genomic Health's shares soared in July after Exact Sciences announced it planned to acquire the company for $2.8 billion. The deal values Genomic Health at $72 per share and is expected to close by the end of 2019. The company also reported its Q2 revenues rose 19 percent year over year, beating the consensus Wall Street estimate.

Invitae also announced an acquisition in July. The firm said it plans to acquire Jungla, an artificial intelligence-driven biotech firm that it believes will enhance its variant interpretation capabilities. Under the definitive agreement, Invitae will pay $35 million in common stock and $15 million in cash to buy Jungla, and could pay up to $15 million more in stock and cash if certain milestones are met.