ILMN Stock Set to Benefit From the Launch of New BioInsight Division

Illumina, Inc. ILMN recently announced the launch of BioInsight, a new business unit developed to meet industry demand for deeper biologic insights, driven by the need of researchers and pharma companies to access and interpret increasingly larger-scale multiomic data. BioInsight brings together Illumina's strengths across sequencing, data analysis, software and AI to deliver solutions for identifying drug targets, understanding biological pathways, discovering novel disease mechanisms, and building the next wave of biological insights.

Rami Mehio, who has led Illumina's Global Software & Informatics team for four years, will serve as senior vice president and general manager at BioInsight, becoming part of the company’s executive leadership team.

ILMN Stock’s Likely Trend Following the News

Following the announcement on Oct.1, ILMN shares jumped 7.7% to close the session at $102.26. The latest move highlights Illumina's commitment to delivering innovative solutions to advance science and healthcare, and fuels the company's long-term, sustainable growth. Under Rami Mehio’s guidance, BioInsight aims to advance Illumina's leadership at the intersection of sequencing, software and AI, with a focus on supporting pharma in drug target discovery and development. Accordingly, we expect the strong momentum of ILMN stock to continue, driven by this news.

Illumina presently has a market capitalization of $15.72 billion. The company’s earnings yield of 4.3% sits comfortably against the industry’s -20.5%. It delivered an earnings beat of 10.6%, on average, in the trailing four quarters.

More on ILMN’s New Division

Progress in the life sciences is accelerating as researchers gain the ability to collect and interpret vast amounts of multiomic data. The field is generating more data than ever, and advanced AI and software are essential to deriving actionable insights from complex multimodal datasets, which can speed up drug target discovery, disease diagnosis and therapeutic development. Illumina is organizing its new business to support essential functions that make this possible.

BioInsight will support data generation in three main ways: enabling large national research initiatives, working with corporate partners to develop valuable data assets and facilitating large-scale federated data networks. This includes expanding beyond traditional genomics to include multiomic and advanced biological data types, such as perturb-seq.

BioInsight is designed to harness all available multimodal data, creating the tools and resources needed to help customers and partners achieve meaningful results faster. With these tools, scientists can more quickly identify patterns, discover new drug targets, and improve disease diagnosis and treatment. In addition to developing its own tools and models, Illumina looks to partner with industry leaders to enable a broad ecosystem of tools to be developed, leveraging its data assets.

Industry Prospects Favor ILMN

Per a Grand View Research report, the global multiomics market was valued at $2.7 billion in 2024 and is expected to witness a compound annual growth rate (CAGR) of 15.3% by 2033.  The increasing demand for single-cell multiomics and ongoing advancements in omics technologies are mainly driving the market’s growth. Moreover, key components, such as genomics, proteomics, metabolomics and transcriptomics, are experiencing increased adoption in healthcare applications. 

More Updates From Illumina

Last month, Illumina announced that it would collaborate with global pharmaceutical companies to develop companion diagnostics (CDx) enabled on the TruSight Oncology Comprehensive genomic profiling test. The new CDx partnerships will focus on KRAS alterations, which are known to cause uncontrolled cell growth, leading to cancer.

ILMN Stock Price Performance

In the past six months, ILMN shares have risen 33.8% compared with the industry’s 18.4% rise.

Illumina’s Zacks Rank and Key Picks

Illumina currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space include Masimo MASI, Phibro Animal Health PAHC and CorMedix CRMD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Masimo shares have jumped 5.3% in the past year. Estimates for the company’s 2025 earnings per share have remained constant at $5.30 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 13.8%. In the last reported quarter, it posted an earnings surprise of 8.1%.

Estimates for Phibro Animal Health’s fiscal 2026 earnings per share have increased 3.3% to $2.53 in the past 30 days. Shares of the company have surged 83.3% in the past year compared with the industry’s 0.7% growth. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.9%. In the last reported quarter, it delivered an earnings surprise of 9.6%.

Estimates for CorMedix’s 2025 earnings per share have increased 50% to $1.83 in the past 30 days. Shares of the company have rallied 24.2% over the past year against the industry’s 5.1% decline. Its earnings yield of 16.6% also outpaces the industry’s -20.5% yield. CRMD’s earnings topped estimates in each of the trailing four quarters, the average surprise being 34.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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