ILLUMINA

Founded at Tufts University in 1998 based on David Walt's research on microarray technology — tiny beads that can detect genetic variations. The founding team initially focused on genotyping (reading specific known DNA positions) rather than whole genome sequencing.

The pivotal transformation came under CEO Jay Flatley, who acquired Solexa in 2007 for $600 million. Solexa had developed a revolutionary sequencing-by-synthesis technology that would eventually allow Illumina to sequence an entire human genome.

The Solexa acquisition turned Illumina from a niche genotyping company into the dominant force in genomics.

Designs, manufactures, and sells DNA sequencing machines and consumables. The razor-and-blade model: sell the sequencing machine (the razor) at a modest margin, then generate recurring revenue from the proprietary reagents and flow cells (the blades) that customers must buy for every sequencing run.

Illumina controls approximately 80% of the global DNA sequencing market. Revenue exceeds $4 billion annually, with consumables making up the majority.

NovaSeq X (flagship high-throughput sequencing system — can sequence 20,000 genomes per year), NextSeq 2000 (mid-throughput clinical and research sequencer), MiSeq (benchtop sequencer for smaller labs), iSeq 100 (compact entry-level sequencer), DRAGEN (bioinformatics analysis platform), and TruSight Oncology (cancer genomics panels).

The $200 genome and clinical applications. Illumina's NovaSeq X system pushes the cost of sequencing toward $200 per genome, making it viable for routine clinical use.

The growth strategy: make genome sequencing as common as a blood test. Oncology (tumor sequencing for personalized treatment), prenatal testing (NIPT), and rare disease diagnosis are the clinical markets.

Illumina also licenses its technology to clinical diagnostic companies.

The cost ceiling and competition from long-read sequencing. Illumina promised a $100 genome — getting the cost of sequencing from $3 billion (Human Genome Project) to $100.

They got close but stalled around $200-600. Meanwhile, competitors like Oxford Nanopore and PacBio developed long-read sequencing technologies that can read longer stretches of DNA, capturing structural variations that Illumina's short-read technology misses.

The failed $7.1 billion acquisition of Grail (cancer screening) became a regulatory nightmare — the FTC blocked it and the EU ordered a divestiture, costing Illumina billions.

Illumina went public in 2000. Key shareholders include Vanguard, BlackRock, and Capital Group.

Early investors included Venrock, Arch Venture Partners, and CW Group.