Illumina plans to enter the molecular diagnostics space by forging partnerships with customers, opening a new CLIA lab, and launching a research project to study cancer genomes, CEO Jay Flatley said during a recent presentation to investors.

Speaking at the JPMorgan Healthcare Conference in San Francisco last week, Flatley said the company will invest to improve existing sequencing technologies and develop new ones to enable it to play in the molecular diagnostics space, which he estimates to be worth $3 billion.

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