Complete Genomics wins outsourcing deal, shares soar

(Reuters) - Gene-sequencing device maker Complete Genomics Inc GNOM.O said it won an outsourcing contract from private firm Mayo Clinic, making it the biggest percentage gainer on the Nasdaq.

Shares of the Mountain View, California-based company, which went public in October 2010, rose as much as 51 percent to $4.98 in morning trade.

“Mayo is an important brand name in this space, and we have been waiting for Complete Genomics to come out with such a news,” Caroline Corner, analyst at McNicoll, Lewis & Vlak said.

The deal comes at a time when the company's biggest competitor Illumina Inc ILMN.O is fighting off an acquisition proposal from European healthcare giant Roche Holding AROG.VX.

The analyst raised doubts on whether Roche will be pushing for Illumina’s sequencing as a service if the acquisition goes through.

“The main competitor is somewhat in peril here. Mayo Clinic’s in-house (capabilities) has Illumina sequencers. So its another validation of Complete Genomics in light of what is going on with Illumina,” Corner said.

According to the contract, Mayo Clinic can send genetic material to Complete Genomics for sequencing and analysis while the private company will continue to operate and invest in its Medical Genome Facility.

Reporting by Vidya P L Nathan in Bangalore; Editing by Roshni Menon, Supriya Kurane