Diamond Hill Capital Management, LLC / Mid Cap Strategy on Illumina, Inc.
Thesis
Diamond Hill views Illumina as the leading producer of next-generation sequencing systems used in DNA research and increasingly in cancer diagnosis and treatment. The investment case is supported by improving clinical growth and the strategic importance of sequencing in health care. During the quarter, Illumina delivered better-than-expected clinical growth while Roche's comparable product launch appeared underwhelming. The fund sees that competitive backdrop as supportive of Illumina's market position.
“Shares rose during the quarter after better-than-expected clinical growth, while competitor Roche’s comparable product launch appeared underwhelming.”