Baron Funds Comments on Illumina Inc.

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May 02, 2014

Shares of Illumina, Inc. (ILMN, Financial), the leading provider of next generation DNA sequencing instruments and consumables, rose during the quarter, driven by better-than-expected fourth quarter results, strong 2014 financial guidance, and the announcement of multiple new product introductions. The company's most exciting new product is an ultra-high throughput sequencing platform that will be the first to sequence a full human genome for less than $1,000. We believe these developments support our view that Illumina has meaningfully distanced itself from its competitors. We believe that nearly all new orders in the sequencing industry are being won by Illumina, affording the company a de facto monopoly in DNA sequencing devices. Further, Illumina retains this remarkable competitive position at a time when demand for next generation DNA sequencing is accelerating rapidly.

From Baron Funds' first quarter 2014 commentary.