Piper Jaffray Provides Color On ILMN Leukemia Tumor Data

Data from Illumina, Inc. ILMN in leukemia tumors after deep re-sequencing found a class of mutations that were not present with the initial diagnosis, Piper Jaffray reports. “If this work is reproduced in other cancer types where we had initially expected 2-3 sequencing runs, (normal, initial tumor and tumor following onset of therapy/relapse), it implies that ultimately, tumors may get sequenced >6 times,” Piper Jaffray writes. “Although it is still early, we believe the implications for the cancer Dx sequencing market could double (>$2 B opportunity now).” “We rate shares of ILMN Overweight rating and will review our $61 price target (45x 2011E ongoing EPS of $1.36) following the upcoming 4Q10 earnings release and conference call,” Piper Jaffray continues. “Risks include the development of new technologies, increased competition, new product adoption and stimulus timing.” Illumina, Inc. closed Friday at $71.12.