<p><img src="https://static3.businessinsider.com/image/6023e6a567d1e300113c5356-1813/Reuters.jpg" border="0" alt="masayoshi son softbank" data-mce-source="Reuters/Issei Kato"></p><p><a href="https://markets.businessinsider.com/stocks/pacb-stock"></a></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p><a href="https://markets.businessinsider.com/stocks/pacb-stock">Pacific Biosciences</a> spiked as much as 29% on Wednesday after <a href="https://investor.pacificbiosciences.com/news-releases/news-release-details/pacific-biosciences-announces-900-million-investment-softbank">the company revealed</a> that <a href="https://markets.businessinsider.com/stocks/sftby-stock">Softbank</a> plans to invest $900 million into its business.</p><p>The $900 million investment, which will be in the form of convertible debt, will come from the recently established asset-management arm of SoftBank, SB NorthStar. The investment adds to the unit's roughly 6% current stake Pacific Biosciences.</p><p>The Menlo Park, California-based company is a genomics systems developer that focuses on providing state-of-the-art DNA-sequencing equipment to scientists.</p><p>"This strategic investment by SoftBank validates our leadership position in the long-read DNA sequencing market and enables us to further accelerate our growth strategies", said Christian Henry, President and Chief Executive Officer of Pacific Biosciences.</p><p><strong data-stringify-type="bold"><em data-stringify-type="italic">Read more: </em></strong><em data-stringify-type="italic"><a href="https://www.businessinsider.com/sports-betting-outlook-betmgm-mgm-entain-investing-tips-strategy-draftkings-2021-2'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.businessinsider.com/sports-betting-outlook-betmgm-mgm-entain-investing-tips-strategy-draftkings-2021-2" data-sk="tooltip_parent">The CEO of the sports-betting app BetMGM breaks down his outlook for the industry - and shares 3 pieces of advice for investors targeting the sector</a>.</em></p><p>SB NorthStar came under scrutiny for <a href="https://www.businessinsider.com/softbanks-northstar-unit-reports-about-37-billion-in-losses-2020-11">producing $3.7 billion in trading losses</a> using risky options strategies in late 2020. Though the unit recovered in SoftBank's <a href="https://group.softbank/en/ir">most recent earnings release</a>, it reported $1.6 billion in losses.</p><p>The group recently made some winning investments to help right the ship however, including a $215 million bet on a Norwegian online-educational game platform called Kahoot and a $690 million stake in the Swedish cloud communications company Sinch.</p><p>Pacific Biosciences has had a remarkable run since July, with shares up 1,167%. The company has benefitted from new management and a joint venture with Invitae Corp., a medical-genetics company, to develop epilepsy tests.</p><p>A 15-year, <a href="https://www.businesswire.com/news/home/20200113005753/en/Illumina-Announces-New-Sequencing-System-Partnership-Roche">non-exclusive deal</a> with <a href="https://markets.businessinsider.com/stocks/rhhvf-stock">Roche</a> to help increase the availability of next-generation sequencing-based in vitro diagnostic (IVD) tests has also added to the growth story.</p><p>PacBio had planned a $1.2 billion merger with larger competitor <a href="https://markets.businessinsider.com/stocks/ilmn-stock">Illumina</a> about a year ago, but the deal fell through after anti-monopoly regulatory agencies in the United States and the UK began asking questions.</p><p>PacBio received a $98 million "reverse termination fee" when the deal failed to go through, but now the company will be forced to return $52 million of that sum because the SoftBank deal is considered a "change of control" transaction.</p><p><strong><em>Read More: </em></strong><em><a href="https://www.businessinsider.com/stocks-to-buy-16-high-conviction-picks-outperform-credit-suisse-2021-2'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener">Credit Suisse says to buy these 16 'highest-conviction' stock picks that are set to outperform despite the market's contrarian view</a>.</em></p><p>"We believe that PacBio's [technology] will be the de facto standard tool for population genomics, fundamentally altering the practice of health care," said Akshay Naheta, CEO of SB Management, which runs the Northstar portfolio.</p><p>Pacific Biosciences CEO, Christian Henry, said the investment will also enable the company to lower prices for its systems, <a href="https://www.wsj.com/articles/softbank-to-make-900-million-investment-in-pacific-biosciences-11612921031">per the Wall Street Journal</a>.</p><p>Shares of Pacific Biosciences traded up nearly 24%, at $49.04 per share as of 10:09 AM E.T. on Wednesday.</p><p><a href="https://markets.businessinsider.com/news/stocks/pacific-biosciences-stock-softbank-investment-softbank-sbnorthstar-2021-2-1030067405#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/what-its-like-travel-during-coronavirus-outbreak-planes-airports-virus-2020-3">Here's what it's like to travel during the coronavirus outbreak</a></p>
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