Illumina, Inc. (ILMN, Financial) is the leading provider of next generation DNA sequencing instruments and consumables. The company reported disappointing financial results, but we do not believe they reflect a change in the company’s market opportunity. We continue to believe the addressable market for the company’s products and services is large (over $20 billion) and growing as new applications for DNA sequencing emerge. Competitively, we believe Illumina remains the dominant provider of sequencing instruments and consumables. Illumina continues to invest substantially in research and development, and we are optimistic that the company will retain its large technological lead over its potential competitors.
From the Baron Asset Fund shareholder letter Q3 2015 by Andrew Peck.
