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PacBio Receives $10M Milestone Payment from Roche

NEW YORK (GenomeWeb) – Pacific Biosciences has received a $10 million payment from Roche for hitting a development milestone that is part of the commercialization and license agreement the companies struck in 2013, according to a PacBio filing with the US Securities and Exchange Commission.

PacBio didn't disclose what development milestone had been met, but noted that it may receive up to $30 million in the future for reaching additional development milestones. It said that the payment will be recorded as contractual revenue in its third quarter financial statement.

In September 2013, Roche and PacBio entered into an agreement under which PacBio will supply Roche with sequencing systems and consumables for diagnostic purposes based on its SMRT platform. Roche will have global rights to exclusively distribute the products in the field of human in vitro diagnostics.

PacBio received an upfront payment of $35 million, and an additional $40 million in funding was tied to development milestones.

The agreement has an initial term of 13 years with provisions that allow Roche to renew it in 5-year increments, according to the document.