Roche, a global leader in diagnostics, has launched AXELIOS 1, a new next-generation sequencing (NGS) platform, to compete with Illumina in the NGS market. This launch is part of Roche's long-term strategy to build its own genomics ecosystem, having previously attempted to acquire Illumina. Roche acquired Stratos Genomics, which holds the Xpandomer technology, in 2020, laying the technical foundation. By leveraging this technology and existing diagnostic infrastructure, Roche aims to achieve cumulative revenues exceeding 1 billion Swiss francs (approximately $1.1 billion) in the long term. The new platform is expected to provide hospitals and laboratories with new options, contributing to the diversification of the genomics analysis supply chain.

AXELIOS 1 is based on Roche's proprietary sequencing by expansion (SBX) technology, which significantly improves the accuracy of nanopore sequencing. The technology converts the original DNA into a synthetic polymer called Xpandomer, which is about 50 times larger, allowing for more precise measurement of current changes. This differentiates it from Illumina's sequencing by synthesis (SBS) method, which uses fluorescent labels, and enables the precise reading of long genomic sequences. It is expected to significantly improve the reliability of nanopore analysis in applications requiring high precision, such as cancer diagnostics and rare disease diagnosis, in the field of personalized healthcare.

Roche has priced AXELIOS 1 at $750,000, offering a strong price advantage over Illumina's NovaSeq X Plus, which costs $1.25 million. This cost reduction is expected to significantly lower the barriers to entry for large-scale genomics research projects and independent genomics analysis laboratories in general hospitals. Although Illumina holds over 70% of the market share and benefits from a strong platform lock-in effect, Roche's entry is likely to lead to increased competition in consumables costs and a general reduction in analysis costs. If maintenance and consumables packages are offered, more customers may gradually switch to the new platform.

The global sequencing market is expected to be reshaped into a multi-player competitive landscape, with Illumina's dominance challenged by companies such as Pacific Biosciences (PACB) with its Revio, Element Biosciences with its AVITI24, and Oxford Nanopore Technologies (ONT). Roche's global sales network and comprehensive diagnostics solutions portfolio, combined with this new platform, are expected to facilitate market share gains, particularly in emerging markets. This equipment competition will lower the barriers to precision medicine, ultimately accelerating the commercialization of liquid biopsies and early cancer screening tests, and reducing the diagnostic costs for patients.