Illumina Inc. (Nasdaq: ILMN) manufactures instruments that are used to study DNA. The company's products allow researchers to study an individual's genetic makeup, sequence genomes, and determine the specific genetic causes of diseases. Illumina's systems have three components: readers, reagents, and one-time-use arrays. Much like its competitors Affymetrix and Applera, Illumina sells the readers at low margins and generates its revenue and income from the sale of disposable arrays and reagents, which are replaced after each procedure. Each reader generates approximately $600,000 in disposables revenue per year.^[1]

Illumina's customers include genomic research centers, pharmaceutical companies, academic institutions, clinical research organizations, and biotechnology companies. Illumina develops and commercializes sequencing technologies used to perform a range of analyses, including de novo sequencing, whole genome re-sequencing, gene expression analysis, and small RNA analysis. Its product and service offerings also include solutions for single-nucleotide polymorphism (SNP) genotyping, copy number variation (CNV), deoxyribonucleic acid (DNA) methylation studies, gene expression profiling, and low-multiplex analysis of DNA, small ribonucleic acid (RNA), and protein.

(Read more at Wikinvest )