Your force choke theory can only apply to products with similar features to ILMN. Differentiated products are bought for different underlying reasons than cost per base, although it’s a factor. No, not all sequencing is the same. The profile of bases, and the workflows they can fit into also breaks up the purchasers. Large expensive boxes can only be bought by a relatively small number of labs, on grant funding mostly. That segment can certainly mature.
Thanks for putting all of this together. I learned so much from your analysis!
One thought on the clinical market and growth potential. Aside from MRD, you mentioned a price point around $2500/test to achieve a reasonable gross margin. 3K seems to be the magic number for whole genome reimbursement rates, meaning growth in the WGS test market could be good for both clinical labs AND Illumina. I would argue also good for certain patients.
Your force choke theory can only apply to products with similar features to ILMN. Differentiated products are bought for different underlying reasons than cost per base, although it’s a factor. No, not all sequencing is the same. The profile of bases, and the workflows they can fit into also breaks up the purchasers. Large expensive boxes can only be bought by a relatively small number of labs, on grant funding mostly. That segment can certainly mature.
Which products are you referring to here and where do you think they are differentiated such that cost per GB is not the most important factor?
Thanks for putting all of this together. I learned so much from your analysis!
One thought on the clinical market and growth potential. Aside from MRD, you mentioned a price point around $2500/test to achieve a reasonable gross margin. 3K seems to be the magic number for whole genome reimbursement rates, meaning growth in the WGS test market could be good for both clinical labs AND Illumina. I would argue also good for certain patients.
Great write up. Do you have any thoughts on Grail now it is standalone?