Intended Audience#

• Researchers and technical professionals familiar with the fundamentals of next-generation sequencing (NGS), single-cell RNA sequencing, and spatial transcriptomics who want to understand recent technological and industry developments.
• Readers interested in NGS platforms beyond Illumina and the evolving competitive landscape of the genomics industry.
• Scientists and professionals interested in how genomic technologies may evolve toward functional genomics, drug discovery, clinical diagnostics, and AI-driven life sciences.

Summary#

• Element Biosciences is evolving from an emerging NGS manufacturer competing with Illumina into a platform company integrating sequencing, single-cell multiomics, spatial analysis, functional genomics, and clinical sequencing.
• The company's estimated revenue reached $85 million in 2025, representing approximately 40% year-over-year growth. Its cumulative installed base exceeded 450 instruments, indicating expanding adoption and consumables utilization.
• Its proprietary Avidite Base Chemistry (ABC) provides the technological foundation for high-accuracy, cost-efficient short-read sequencing. In 2026, Element also announced VITARI, targeting the high-throughput sequencing market.
• AVITI24 and Direct In Sample Sequencing (DISS) enable the integration of gene expression, protein expression, cell morphology, and genetic perturbations within individual cells. These technologies may become central to Element's long-term competitive differentiation.
• Future growth will depend not only on NGS instrument adoption but also on the practical utility of multiomics, expansion into clinical markets, independent technology validation, and the management of intellectual property risks.

This article is based on publicly available information as of November 1, 2026. Manufacturer-reported specifications, financial figures, and installed-base data are distinguished from independently validated findings. Forward-looking assessments represent the author's interpretation of publicly available information rather than official company forecasts.

1. What Kind of Company Is Element Biosciences?#

Element Biosciences is a privately held life sciences instrumentation company headquartered in San Diego, California.

Led by co-founder and CEO Dr. Molly He, the company develops and commercializes technologies built around its proprietary DNA sequencing chemistry. [1][12]

To understand Element's current position, however, it is no longer sufficient to describe it simply as "an emerging NGS competitor to Illumina."

Element is now pursuing opportunities across three interconnected markets.

1. Competition with Illumina in NGS: Element aims to deliver high accuracy, lower sequencing costs, and flexible throughput through its proprietary Avidite Base Chemistry (ABC).
2. Competition with 10x Genomics and other multiomics companies: Through AVITI24 and Direct In Sample Sequencing (DISS), Element seeks to integrate cell morphology, gene expression, protein expression, and genetic perturbations within individual cells.
3. Expansion into clinical genomics: Element is extending its business beyond research-use sequencing toward regulated diagnostic platforms.

The year 2026 has been particularly important because these three strategic directions have begun translating into concrete product launches.

In February, Element announced VITARI, a high-throughput NGS platform.

In October, the company began shipping Cytos, a multiomics workflow designed for CRISPR screening, and commercially launched AVITI Dx in ten European countries. [5][7][8]

These developments suggest that Element is transitioning from a research sequencing instrument manufacturer toward a platform company serving multiple research and diagnostic markets.

1.1 Element's Main Products#

Element's major products can be summarized as follows.

Product	Positioning	Main Features
AVITI / AVITI LT	Core research-use NGS platforms	Emphasis on sequencing cost, accuracy, and operational efficiency for routine short-read applications
AVITI24	Integrated NGS and multiomics platform	Combines sequencing and imaging for multidimensional analysis of individual cells
Cytos	Multiomics workflow for AVITI24	Integrates CRISPR perturbations, cell morphology, protein expression, and transcriptomics
VITARI	High-throughput NGS platform	Targets large-scale genomic sequencing with up to 10 billion reads per run
AVITI Dx	Clinical sequencing platform	An IVD sequencing platform designed for compliance with the EU IVDR

These products share ABC as an important technological foundation.

AVITI24, however, introduces an additional dimension: combining sequence detection within biological samples with imaging-based analysis. [2][4][5][7][8]

Evaluating Element's competitive position therefore requires looking beyond sequencing specifications and considering which new biological experiments become possible through the integration of these technologies.

1.2 How Should We Interpret Element's Strategy?#

Element's strategy can be understood by separating its near-term revenue foundation from its longer-term growth opportunities.

In the near term, increasing the installed base of AVITI instruments and expanding recurring revenue from reagents, flow cells, and other consumables will be essential.

Over the longer term, AVITI24-based multiomics and spatial analysis could create value that goes beyond competition over sequencing price.

A particularly important aspect of this strategy is the effort to transform sequencing from a technology that simply reads nucleic acid sequences into one that can be integrated with measurements of cell morphology and function.

If successful, Element could become more than an alternative sequencing vendor to Illumina.

It could influence the experimental workflows used in single-cell biology and functional genomics.

Nevertheless, technological differentiation should not be confused with guaranteed commercial success.

Illumina's extensive installed base, the established ecosystem surrounding 10x Genomics, intellectual property competition, and the need for independent validation of emerging technologies remain significant challenges.

2. Current Business Status: Revenue Growth and Instrument Adoption#

One useful source for understanding Element's business scale is the company's presentation at the J.P. Morgan Healthcare Conference in January 2026. [1]

2.1 Financial Performance and Business Scale in 2025#

Element reported the following business metrics.

Metric	2025 Results
Estimated revenue	$85 million
Revenue growth	Approximately 40% year over year
Cumulative installed base	More than 450 instruments
Installed-base growth	More than 60% year over year
Consumables kit shipments	More than doubled year over year
Sequencing runs	More than doubled year over year
Geographic presence	More than 40 countries

Source: Element Biosciences, J.P. Morgan Healthcare Conference presentation, January 12, 2026. [1]

The revenue figure represents a company estimate rather than an audited financial result.

The reported revenue trend was as follows.

Year	Revenue
2024	Approximately $60 million
2025 (company estimate)	Approximately $85 million

This growth indicates that Element has been expanding its commercial operations.

However, the increase in consumables shipments and sequencing runs is arguably more important than instrument sales alone.

For NGS instrument manufacturers, the business model depends not only on selling hardware but also on generating recurring revenue from reagents, flow cells, and other consumables.

If instruments are installed but used infrequently, consumables revenue may remain limited.

In Element's case, both consumables kit shipments and sequencing runs more than doubled in 2025, suggesting that utilization among its customer base has been increasing. [1]

Nevertheless, the presentation does not establish the absolute amount of consumables revenue, gross margins, or annual revenue generated per installed instrument.

Assessing the company's future profitability will therefore require monitoring instrument utilization and consumables growth, rather than relying on installation figures alone.

2.2 Funding and Capital Resources#

Element has raised substantial capital to support its expansion.

In July 2024, the company raised more than $277 million in its Series D financing round, bringing cumulative funding to more than $680 million. [12]

In June 2026, Element announced an expanded Series E financing round.

This included a $175 million investment from Samsung Electronics, alongside participation from other investors. The total size of the Series E round was not disclosed. [9]

The financing is intended to support several initiatives, including:

• Commercialization of VITARI, AVITI24, and AVITI Dx
• Global market expansion
• Development of next-generation products

These financing activities indicate that Element is no longer simply an early-stage startup demonstrating a new sequencing chemistry.

It has entered a growth phase characterized by commercial products, an expanding installed base, and an increasing emphasis on recurring revenue.

At the same time, annual revenue of approximately $85 million does not mean that Element is close to replacing the dominant global NGS platform.

The next challenge is converting its technology portfolio into a sustainable business operating at substantially greater scale.

3. Core Technology: Avidite Base Chemistry and Its Competitive Advantages#

Understanding Element's technological differentiation requires examining its proprietary Avidite Base Chemistry (ABC).

ABC redesigns important aspects of DNA amplification, base recognition, and DNA extension compared with conventional Illumina-style sequencing-by-synthesis (SBS). [2]

3.1 How ABC Differs from Illumina SBS#

In conventional Illumina SBS, fluorescently labeled reversible terminator nucleotides are incorporated into a growing DNA strand.

The incorporated base is identified through fluorescence imaging, after which the relevant chemical modifications are removed to allow the next sequencing cycle.

Base incorporation and detection are therefore closely coupled.

Element's ABC takes a different approach by separating base recognition from DNA extension.

Technology	Basic Base Recognition and Extension Workflow
Illumina SBS	Incorporation of fluorescently labeled nucleotide → Imaging → Deprotection
Element ABC	Base recognition through multivalent Avidite → Imaging → DNA extension

Source: Element Biosciences' explanation of Avidite Base Chemistry. [2]

This design has three particularly important characteristics.

3.2 Polony Formation Through Rolling Circle Amplification#

The first characteristic is the use of rolling circle amplification (RCA) to generate polonies.

Whereas Illumina bridge amplification uses PCR-based amplification, Element employs RCA using circular DNA templates.

In principle, this can reduce the propagation of errors associated with successive cycles of PCR amplification.

It can also help address certain forms of index hopping associated with amplification processes.

However, RCA does not eliminate PCR errors introduced upstream during library preparation.

3.3 Multivalent Base Recognition Using Avidites#

The second characteristic is multivalent base recognition using Avidites.

Fluorescently labeled multivalent Avidites recognize bases along the template and generate detectable signals through stable binding interactions.

Because this differs from incorporating fluorescently labeled nucleotides, it provides additional flexibility in optimizing the base recognition process.

3.4 Separation of Base Recognition and DNA Extension#

The third characteristic is the separation of base recognition from DNA extension.

The reaction conditions for nucleotide identification and polymerase-mediated extension can be optimized independently.

This design may contribute to a high signal-to-noise ratio and better maintenance of sequence quality over longer reads.

Another important distinction is that the chemistry does not require the incorporation of fluorescently modified nucleotides followed by removal of their fluorescent modifications.

Together, these features form the technical foundation of Element's high-accuracy short-read sequencing approach. [2]

3.5 Is Element Sequencing Actually More Accurate?#

It is important to distinguish manufacturer-reported specifications from independent performance evaluations.

A useful source is the 2025 paper titled "Accurate human genome analysis with Element Avidity sequencing." [3]

The study compared human whole-genome sequencing (WGS) data generated using Element technology with Illumina data.

Its findings included:

• At relatively high coverage, approximately 30–50×, mapping and variant calling accuracy were broadly comparable.
• At lower coverage, approximately 20–30×, Element showed a clearer advantage.
• Element exhibited lower base error rates in homopolymer and tandem repeat regions.
• Paired-end analysis using longer inserts produced further improvements in variant calling.

The significance of these findings extends beyond higher Q-scores.

Differences in sequencing error profiles may provide additional value when analyzing genomic regions that have traditionally been difficult to characterize using short reads.

However, a high Q-score does not automatically guarantee superior accuracy across all categories of genomic variation.

Different performance criteria are required for:

• Single nucleotide variants (SNVs)
• Small insertions and deletions (indels)
• Structural variants (SVs)
• Copy number variants (CNVs)
• Repeat expansions
• Low-variant-allele-frequency (low-VAF) mosaic variants

Moreover, Element remains a short-read sequencing technology.

It therefore faces inherent limitations in resolving long repetitive regions and complex structural variants.

Long-read sequencing technologies such as PacBio HiFi and Oxford Nanopore remain particularly important for these applications.

ABC should consequently be understood as a promising advancement in short-read sequencing, rather than a universal replacement for long-read technologies.

3.6 Performance of the AVITI Product Family#

Element's main research sequencing platforms can be summarized as follows.

Product	Maximum Reads (Dual-Sided Run)	Main Positioning
AVITI LT	1 billion	Small laboratories
AVITI	2 billion	Medium-throughput NGS
AVITI24	3 billion	NGS and multiomics
VITARI	10 billion	Large-scale WGS and RNA-seq

These figures are based primarily on manufacturer-reported specifications for 2 × 150 bp sequencing and may vary depending on the kit and run configuration. [4][7]

For AVITI, Element reports configurations delivering more than 90% Q30 at 2 × 150 bp.

With Cloudbreak UltraQ, the company also reports more than 90% Q40 and more than 70% Q50.

The theoretical relationship between Q-score and base calling error probability is:

Q-score	Theoretical Base Calling Error Probability
Q30	0.1%
Q40	0.01%
Q50	0.001%

Real sequencing errors, however, can exhibit sequence-context dependence and systematic biases.

Q-score is therefore an important metric, but it is insufficient on its own to determine final variant calling accuracy.

4. AVITI24 and Direct In Sample Sequencing: Expansion into Multiomics#

Among Element's current products, AVITI24 may have the greatest long-term strategic significance.

AVITI24 can function as a conventional NGS instrument while also supporting multiomics workflows that analyze cells directly within biological samples. [4]

The core enabling technology is Direct In Sample Sequencing (DISS).

4.1 How DISS Differs from Conventional Single-Cell RNA-seq#

In conventional droplet-based single-cell RNA sequencing, cells are isolated and lysed, and mRNA molecules are barcoded before library preparation.

This allows gene expression to be quantified at single-cell resolution.

However, because cells are lysed, much of the information about their original morphology and intracellular localization is lost.

AVITI24's DISS technology approaches this problem differently.

Its central concept is to read nucleic acid sequences directly within samples while connecting molecular measurements with cellular morphology.

A simplified comparison illustrates the distinction.

Conventional Single-Cell RNA-seq	DISS
Prepare a cell suspension	Prepare cell or tissue samples
Capture and lyse cells	Perform reactions within the sample
Prepare sequencing libraries	Perform sequence detection and imaging within the sample
Read sequences using NGS	Integrate morphology and molecular measurements

This comparison illustrates the general concepts rather than the detailed experimental protocols, which vary by assay.

The key advantage of DISS is the ability to associate morphological and molecular information directly with the same cell.

In single-cell biology, experiments designed to measure cellular morphology and those designed to measure gene expression have traditionally relied on separate workflows.

DISS aims to overcome this separation.

4.2 Cytos: Multiomics Analysis Within the Same Cell#

On October 19, 2026, Element announced the first shipments of Cytos. [5]

Cytos is a multiomics workflow for AVITI24, with applications including CRISPR screening and cellular phenotyping.

According to Element, the system can obtain the following measurements from the same cell.

Measurement	Information Obtained
Guide RNA	Identification of the CRISPR perturbation introduced into the cell
Cell morphology	Cell shape, intracellular structures, and image-based phenotypes
Protein expression	Expression of selected protein markers
Transcriptome	Gene expression profile of the same cell

The main advantage is not simply the number of data modalities collected.

The important capability is the direct association of genetic perturbations, transcriptional responses, protein expression, and morphological changes within the same cell.

Cytos transcriptome measurements should not, however, be interpreted as equivalent to conventional full-length RNA sequencing.

The workflow primarily measures gene expression through a 3′-oriented approach, which introduces limitations for applications such as isoform analysis.

4.3 Why Cytos Is Particularly Interesting for CRISPR Screening#

One of the most promising applications of Cytos is CRISPR screening.

Conventional Perturb-seq links guide RNA identity to transcriptional responses at the single-cell level.

High-content imaging, on the other hand, provides rich measurements of morphology and intracellular organization.

However, directly connecting image-derived phenotypes with genetic perturbations and transcriptional responses has often required additional experimental techniques or specialized workflows.

Cytos aims to integrate these approaches.

Potential applications include:

• CRISPR knockout, CRISPRi, and CRISPRa screening
• Drug mechanism-of-action studies
• Functional disease modeling using iPSC-derived cells
• Synthetic lethality and drug resistance studies
• Analysis of intracellular structural and signaling changes following genetic perturbations

For example, when a gene is knocked out, researchers may wish to understand not only the resulting transcriptional changes but also changes in cell morphology and intracellular organization.

Being able to measure these responses within the same cell could provide substantial value for functional genomics.

Nevertheless, integrating measurements at the single-cell level does not automatically establish causal effects for every observed change.

Challenges familiar from Perturb-seq remain relevant, including:

• Guide multiplicity
• Off-target effects
• Confounding by cellular state
• Reproducibility of image-derived features

These issues must still be addressed through experimental design and statistical analysis.

4.4 Expansion into Spatial Biology#

Element is also developing direct sequencing within tissue samples using AVITI24.

The intended sample types include formalin-fixed paraffin-embedded (FFPE) and fresh-frozen tissues. [4][6]

A particularly interesting capability is not merely spatial gene expression analysis, but the potential to associate expressed genetic variants directly with their spatial locations within tissue.

Consider a tumor sample.

Researchers might want to identify where cells expressing a particular driver mutation are located and characterize the immune cell populations surrounding them.

Performing these analyses within the same sample could provide valuable information about tumor organization.

Potential applications include:

• Tumor clonal architecture
• Spatial distribution of drug-resistant clones
• Tumor microenvironment characterization
• Tumor–immune cell interactions
• Relationships between genotype and cellular state within tumors

However, RNA-based variant detection has important limitations.

Variants in genes that are not expressed cannot be detected, and results may be affected by allelic expression and RNA quality.

Therefore, RNA-based spatial measurements should not be interpreted as a complete reconstruction of the spatial distribution of DNA variants.

As of November 1, 2026, tissue profiling was still described as "coming soon" in Element's product information.

Broad commercial availability and extensive independent validation therefore remained to be established. [4][6]

5. VITARI: Entering the High-Throughput NGS Market#

In February 2026, Element announced VITARI, its high-throughput sequencing platform. [7]

This marked an important strategic shift.

Element had previously been strongest in benchtop and medium-throughput sequencing.

With VITARI, the company is targeting applications such as large-scale whole-genome sequencing and population genomics.

5.1 Main Specifications of VITARI#

Element has reported the following specifications.

Specification	Manufacturer-Reported Value
Maximum output	3 TB per dual-sided run
Maximum read count	10 billion reads per run
Advertised WGS cost	$100 per genome
Flow cells	Two independently operated flow cells
Lane configuration	Six lanes per flow cell
Planned shipment timing	Second half of 2026

VITARI is designed to generate up to 10 billion reads and 3 TB of data in a dual-sided run.

Element also advertises a sequencing cost of $100 per genome. [7][13]

As of November 1, 2026, preorders were being accepted, but publicly available information confirming widespread shipment to customers had not been identified.

5.2 The Competitive Advantage Is Not Simply Maximum Throughput#

In high-throughput sequencing, a low theoretical cost per gigabase does not necessarily translate into efficient real-world operations.

For example, if a facility lacks enough samples to fill a flow cell, the effective cost per sample may increase.

Similarly, facilities processing samples from multiple research projects may face scheduling constraints and differences in required turnaround times.

Element is attempting to address these challenges through independent flow cells and flexible lane-based operation.

In other words, its competitive proposition involves not only maximum throughput but also the operational efficiency of the sequencing facility as a whole.

This flexibility could be particularly valuable for:

• Medium-sized sequencing core facilities
• Hospital-affiliated genomics laboratories
• Internal sequencing facilities at pharmaceutical companies
• Research institutions processing samples from multiple projects

For these organizations, the ability to adjust sequencing operations to actual sample demand may sometimes matter more than theoretical maximum throughput.

5.3 How Should We Evaluate the $100 Genome?#

The concept of a "$100 genome" is a powerful marketing message.

However, it should not be interpreted as the complete cost of performing and interpreting a clinical genome sequencing test.

The total cost of WGS also includes:

• DNA extraction
• Library preparation
• Quality control
• Instrument depreciation
• Personnel
• Data storage
• Bioinformatics analysis
• Variant interpretation

A more practical measure of sequencing economics is therefore:

[ \mathrm{Cost\ per\ reportable\ sample}

\frac{\mathrm{Total\ workflow\ cost}} {\mathrm{QC\ pass\ samples}} ]

In other words, the relevant metric is the total cost per sample that passes quality control and produces a reportable result.

Additional performance metrics include:

• Sample turnaround time
• Coverage uniformity
• Duplicate rate
• Variant calling sensitivity
• QC pass rate

VITARI's commercial success will depend less on the advertised $100 figure itself than on whether customers can consistently reproduce its economic advantages under real operating conditions.

6. Expansion into Clinical Genomics: AVITI Dx#

On October 29, 2026, Element commercially launched AVITI Dx in ten European countries. [8]

This represents an important milestone in the company's expansion from research sequencing into clinical genomics.

6.1 Main Features of AVITI Dx#

AVITI Dx was introduced as a Class A IVD sequencing platform designed for compliance with the EU In Vitro Diagnostic Medical Devices Regulation (IVDR).

Rather than simply repurposing the research-use AVITI instrument for clinical applications, the platform includes dedicated reagents and software.

It also features a dual-boot architecture that allows operation in either IVD or research-use-only (RUO) mode.

Element obtained ISO 13485 certification in June 2026, reflecting its efforts to establish a quality management framework suitable for diagnostic applications. [8][14]

6.2 CE Marking Does Not Mean Every Genetic Test Is Clinically Approved#

An important distinction is that CE marking of a sequencing instrument does not mean that every genetic test performed using that instrument has been clinically approved.

Individual assays may still require evaluation of:

• Reagent and software compatibility
• Analytical performance
• Laboratory quality management
• Applicable regulatory requirements for the intended test

Nevertheless, introducing a regulated clinical platform is strategically significant.

In clinical genomics, purchasing decisions depend not only on instrument price and sequencing accuracy, but also on:

• Supply stability
• Instrument maintenance and service
• Traceability
• Change control
• Regulatory compliance

These requirements create barriers to entry that differ from those in research-use sequencing.

6.3 Potential Future Applications#

Through AVITI Dx, Element may eventually expand into applications such as:

• Tumor genomic panels
• Hereditary disease testing
• Rare disease diagnostics
• Newborn screening

Partnerships with diagnostic assay developers could be particularly important.

However, these are potential future applications, not confirmation that specific tests have already received regulatory authorization or been commercialized.

Long-term success in clinical genomics will depend on sustained regulatory compliance and the development of relationships with diagnostic partners.

7. Competitive Landscape: Illumina, 10x Genomics, and Long-Read Sequencing Companies#

Element competes across multiple life sciences technology markets.

Its competitive landscape therefore extends well beyond Illumina.

7.1 Major Competitors#

Competitor	Core Strengths	Element's Intended Differentiation
Illumina	Extensive installed base, standardized NGS workflows, broad assay portfolio	ABC accuracy, pricing, and operational flexibility
10x Genomics	Single-cell and spatial ecosystems built around Chromium, Xenium, and related products	Integration of imaging and molecular measurements in the same cell through DISS
Pacific Biosciences	HiFi long reads and analysis of complex genomic regions	Cost efficiency of high-accuracy short reads
Oxford Nanopore Technologies	Ultra-long reads, direct RNA sequencing, and portability	Large-scale, reproducible short-read sequencing
Ultima Genomics	Low-cost, large-scale sequencing	Combining high accuracy with flexible batch sizes

This comparison reflects the companies' broad technological positioning rather than a universal ranking across all applications.

7.2 Competition with Illumina#

Illumina has an extensive installed base and a broad ecosystem of sequencing assays and workflows.

Consequently, even if a competing instrument offers lower costs or improved accuracy, established Illumina users may not switch platforms immediately.

Changing sequencing platforms can require adjustments to:

• Experimental protocols
• Bioinformatics pipelines
• Assay validation procedures
• Laboratory operations

For Element, the critical challenge is demonstrating that ABC's technological advantages translate into practical benefits across complete workflows.

VITARI's operational flexibility and the consumables economics of the AVITI family are important elements of this strategy.

7.3 Competition with 10x Genomics Is Fundamentally Different#

An equally interesting competitor for Element is 10x Genomics.

Through products such as Chromium and Xenium, 10x Genomics has built an established ecosystem in single-cell analysis and spatial biology.

In these fields, instruments are closely connected with reagents, experimental protocols, analysis software, public datasets, and research communities.

Element is attempting to compete through integrated multiomics centered on DISS.

An important question is whether experiments that previously required multiple platforms—including single-cell technologies and imaging systems—can be performed more efficiently using a unified Element workflow.

Over the longer term, integrating workflows currently served by single-cell sequencing, spatial biology, and high-content imaging companies may create more value for Element than simply gaining market share from Illumina in conventional NGS.

7.4 Intellectual Property Competition#

Intellectual property is another important consideration when evaluating Element's business strategy.

In May 2026, 10x Genomics filed a patent infringement lawsuit in the United States involving technologies associated with Element's AVITI24.

Element disputed the allegations. [10][11]

Meanwhile, in July 2026, Element announced that a court in Munich, Germany, had found Illumina to infringe a patent controlled by Element relating to sequencing imaging technology. [15]

These developments demonstrate that Element is neither exclusively a defendant nor exclusively a prevailing party in intellectual property disputes.

Important issues to monitor include:

• Final outcomes of ongoing litigation
• Patent licensing terms
• Risks of sales injunctions
• Litigation-related expenses
• Potential product redesign requirements

Even companies with genuinely differentiated technologies can face commercial uncertainty arising from intellectual property disputes.

8. Future Strategy Through 2030#

The following discussion represents the author's interpretation and projections based on publicly available information.

It should not be interpreted as Element's officially announced business plan.

Considering the company's product portfolio and recent developments, four major strategic growth areas can be identified.

8.1 Expanding the NGS Installed Base and Consumables Revenue#

The first strategic priority is expanding the installed base of NGS instruments and increasing recurring consumables revenue.

With AVITI, AVITI LT, AVITI24, and VITARI, Element is developing a portfolio that can serve customers ranging from small laboratories to high-throughput sequencing facilities.

If successful, this strategy could generate an increasing proportion of revenue from ongoing instrument utilization rather than hardware purchases alone.

Such recurring revenue would provide an important foundation for business stability and future profitability.

8.2 Making Multiomics and Spatial Analysis Central to Differentiation#

The second priority is expanding multiomics and spatial analysis around AVITI24.

This strategy differs fundamentally from competing solely on sequencing cost or throughput.

By integrating measurements that previously required separate instruments, reagents, and analytical steps, Element could enable new experimental workflows.

Examples include:

• Simultaneous measurement of cellular morphology and gene expression
• Linking CRISPR perturbations directly with cellular phenotypes
• Combining spatial molecular measurements with tissue imaging

If these workflows become widely adopted, they could generate value that is difficult to capture through conventional comparisons of sequencing cost per gigabase.

8.3 Providing High-Dimensional Data for AI-Driven Drug Discovery#

The third potential growth area is the application of Element's technologies to AI-driven drug discovery and cellular response modeling.

Combining guide RNA identity, transcriptomic measurements, protein expression, and morphology within individual cells could produce high-dimensional datasets connecting genetic perturbations with cellular responses.

Such datasets may be valuable for training predictive models of cell behavior.

For example, researchers may attempt to predict how suppressing a particular gene changes transcriptional states or cell morphology.

Applications could also include the analysis of drug mechanisms of action and resistance.

However, generating high-dimensional multiomics data does not automatically improve AI model performance.

Any such improvement must be demonstrated through independent validation.

8.4 Expanding into Clinical Genomics#

The fourth strategic priority is expansion into clinical sequencing through AVITI Dx.

Clinical genomics differs from research sequencing because regulatory compliance, quality management, traceability, and supply stability become especially important.

With AVITI Dx, Element is moving toward a more integrated offering covering instruments, reagents, software, and diagnostic workflows.

Partnerships with assay developers may enable future expansion into applications such as oncology genomics and hereditary disease testing.

Nevertheless, regional regulatory requirements and the development of diagnostic partnerships will remain critical to commercial success.

8.5 Scenario Analysis for 2027–2030#

Based on these strategic directions, several possible future scenarios can be considered.

Scenario	Potential Development	Key Conditions
Bull Case	Element becomes a major alternative in short-read NGS while establishing a differentiated multiomics market	Successful VITARI manufacturing and adoption, widespread Cytos utilization, expansion into clinical markets
Base Case	Element captures a meaningful share of the NGS market while AVITI24 grows in high-value applications	Increasing utilization among existing customers and continued technical improvement
Bear Case	Price competition and patent litigation slow growth, while multiomics adoption remains limited	Competitor price reductions, insufficient independent validation, and barriers to adoption

These are qualitative scenarios rather than numerical forecasts of revenue or market share.

A particularly important factor is not simply the success of VITARI as a hardware product, but the degree to which AVITI24-based workflows become established within the research community.

In single-cell biology and functional genomics, successful measurement technologies often become embedded in experimental protocols, analysis pipelines, reference datasets, and scientific communities.

Once such an ecosystem develops, it can create competitive advantages that extend beyond instrument pricing.

9. What Should Genomics Researchers Evaluate?#

From a research perspective, assessing Element's future potential requires examining actual data quality and complete workflow performance rather than relying exclusively on manufacturer specifications.

Five areas deserve particular attention.

Evaluation Area	Key Validation Metrics	Priority
ABC performance	GIAB benchmarks, difficult genomic regions, low-VAF variants, reproducibility	High
VITARI economics	Measured cost per sample, utilization, QC pass rates, maintenance costs	High
DISS information content	Genes per cell, UMI counts, dropout rates, detection sensitivity, cell throughput	Very high
Spatial analysis	Variant detection sensitivity and specificity, effective spatial resolution, FFPE compatibility	Very high
Ecosystem development	Public datasets, independent publications, analysis tools, diagnostic partnerships	High

9.1 ABC Should Be Evaluated Using Final Variant Calling Performance#

For ABC, Q-scores and total read counts are useful but insufficient.

The most relevant comparisons should include final variant calling performance using standardized benchmarks such as Genome in a Bottle (GIAB).

Particular attention should be given to:

• Difficult genomic regions
• Low-VAF variant detection
• Reproducibility between sequencing runs
• Sequence-context-dependent errors

It is also important to determine whether ABC's different error characteristics lead to meaningful improvements in downstream analysis.

9.2 VITARI Should Be Evaluated Under Real Operating Conditions#

For VITARI, actual workflow economics matter more than headline throughput.

Important questions include:

• Can facilities maintain high efficiency when sample demand fluctuates?
• What is the true total cost per QC-passing sample?
• Does the system remain economically competitive after maintenance, labor, and instrument depreciation are included?

In high-throughput sequencing, instrument utilization can have a substantial influence on overall cost structure.

9.3 DISS and Cytos Should Be Evaluated at the Level of Each Modality#

For Cytos, the claim that four types of information can be obtained from the same cell is not sufficient to establish superiority.

Researchers should examine how much information is retained in each modality compared with assays optimized specifically for that measurement.

Relevant metrics include:

• RNA-seq detection sensitivity
• Genes detected per cell
• UMI counts
• Dropout rates
• Number and diversity of detectable proteins
• Imaging resolution
• Number of cells that can be processed
• Accuracy of guide RNA identification and perturbation assignment

AVITI24's true competitive advantage will depend on whether the benefits of integrated multiomics outweigh potential reductions in individual modality sensitivity and any additional costs.

9.4 Spatial Analysis Requires Careful Assessment of Variant Detection Limitations#

The ability to detect gene expression and variants directly within tissues is scientifically compelling.

However, RNA-based analysis cannot detect variants in genes that are not expressed.

Results may also be affected by allelic expression biases and RNA quality.

Therefore, important validation metrics include:

• Variant detection sensitivity
• Variant detection specificity
• Effective spatial resolution
• Performance with FFPE specimens

Only after these properties have been adequately evaluated can researchers assess the practical utility of the technology for studying tumor clonal architecture and the tumor microenvironment.

9.5 Independent Validation and Ecosystem Development#

The adoption of new experimental technologies depends on more than manufacturer-reported performance.

Independent validation by the research community is essential.

Particularly important factors include:

• Publicly available datasets
• Independent scientific publications
• Analysis pipelines
• Comparative studies with established platforms

The availability of standardized protocols and accessible bioinformatics tools can also make new technologies easier for laboratories to adopt.

Element's ability to develop such an ecosystem will be an important indicator of its long-term commercial potential.

10. Overall Assessment: Where Is Element Heading?#

Element Biosciences is one of the more technologically interesting companies in the current genomics and life sciences instrumentation industry.

However, evaluating its prospects requires distinguishing technological originality, commercialization progress, growth opportunities, and business uncertainty.

The following is the author's qualitative assessment.

Evaluation Category	Rating (Out of 5)	Rationale
Technological differentiation	5/5	Proprietary technology platforms including ABC and DISS
Commercialization progress	4/5	Growing installed base and an expanding portfolio including VITARI, Cytos, and AVITI Dx
Long-term growth potential	5/5	Opportunities across NGS, multiomics, functional genomics, drug discovery, and clinical diagnostics
Business certainty	3/5	Competitive pressure, intellectual property risks, and uncertainty surrounding adoption of emerging technologies

These ratings represent qualitative opinions rather than objective rankings or investment recommendations.

10.1 Near- to Medium-Term Outlook: 2026–2028#

Over the near to medium term, Element's business performance will likely depend on:

• Expansion of AVITI and VITARI installations
• Improved instrument utilization
• Growth in consumables revenue
• Adoption of AVITI Dx in clinical settings

VITARI will be particularly important for evaluating whether Element can establish a stronger position in high-throughput NGS.

The key question will be whether its advertised performance and economics can be consistently reproduced in real customer environments.

10.2 Longer-Term Outlook: 2028–2030 and Beyond#

Over the longer term, the adoption of AVITI24 and DISS across multiomics, spatial biology, CRISPR screening, and AI-driven drug discovery may become increasingly important.

If these technologies become established experimental workflows, Element could develop competitive advantages that extend beyond conventional sequencing price competition.

The most interesting technological direction is the transformation of NGS from a system that simply reads nucleic acid sequences into a measurement platform connecting genotype, genetic perturbations, transcriptional states, protein expression, cell morphology, and spatial information.

If Element succeeds in this direction, it could become more than an alternative to Illumina.

It could emerge as a platform company supporting a new generation of experimental biology.

10.3 Key Developments to Monitor#

Several developments over the next one to two years should help clarify Element's prospects.

• VITARI shipments and operational performance: Can customers reproduce the advertised throughput and sequencing economics in real-world environments?
• Independent validation of Cytos: What additional scientific value does the platform provide compared with established single-cell sequencing and high-content imaging technologies?
• Practical utility of direct sequencing within tissues: How effectively can spatial gene expression and variant measurements address important research questions?
• Recurring revenue from clinical applications: To what extent will AVITI Dx gain adoption among diagnostic laboratories and generate sustained consumables demand?
• Intellectual property developments: How will ongoing disputes affect product commercialization and business operations?

10.4 The Most Important Strategic Question#

The central question regarding Element's future is no longer simply whether it can manufacture an NGS instrument that is cheaper or more accurate than Illumina's products.

A potentially more important question is whether sequencing can be integrated with imaging and other measurements to generate biological information that previously required separate experiments.

From this perspective, AVITI24 and DISS may be especially important to Element's long-term strategy.

To understand their actual scientific and commercial value, one particularly useful comparison would be:

"To what extent are Element's DISS and AVITI24 scientifically superior to 10x Genomics' Chromium and Xenium platforms, as well as existing Perturb-seq and spatial transcriptomics technologies?"

Answering this question requires more than comparing instrument specifications.

It requires evaluating:

• Actual information content
• Cost per cell
• Measurement biases
• The biological questions that each technology can address

Ultimately, Element Biosciences is worth following not only because of its competition in the NGS market, but also because its technology strategy reflects a broader question about the future of genomics:

Will sequencing remain primarily a method for reading nucleic acid sequences, or will it increasingly become an integrated platform for measuring cellular states and biological function?

Element's progress over the coming years may provide important insights into that transition.

References#

[1] Element Biosciences, "JPM Healthcare Conference 2026," 2026. https://www.elementbiosciences.com/hubfs/element_biosciences_2025/resources_assets/tofu/Element%20JPM%202026%20V3_Public_With-Notes_2%201.pdf

[2] Element Biosciences, "Avidite Base Chemistry," Technology Overview. https://www.elementbiosciences.com/technology/avidite-base-chemistry

[3] "Accurate human genome analysis with Element Avidity sequencing," BMC Bioinformatics, 2025. Google Research publication information. https://research.google/pubs/accurate-human-genome-analysis-with-element-avidity-sequencing/

[4] Element Biosciences, "AVITI24," Product and Technology Specifications. https://www.elementbiosciences.com/products/aviti24

[5] Element Biosciences, "Element Biosciences Launches Cytos, Scaling Multiomics to Labs of Every Size," October 19, 2026. https://www.elementbiosciences.com/news/element-biosciences-launches-cytos-scaling-multiomics-to-labs-of-every-size

[6] Element Biosciences, "2026 Innovation Roadmap," 2026. https://www.elementbiosciences.com/2026-innovation-roadmap

[7] Element Biosciences, "Element Biosciences Introduces VITARI, Redefining What High-Throughput Sequencing Makes Possible," February 19, 2026. https://www.elementbiosciences.com/news/element-biosciences-introduces-vitari-redefining-what-high-throughput-sequencing-makes-possible

[8] Element Biosciences, "Element Biosciences Launches AVITI Dx, Bringing CE-Marked IVD Sequencing to Ten EU Countries," October 29, 2026. https://www.elementbiosciences.com/news/element-biosciences-launches-aviti-dx-bringing-ce-marked-ivd-sequencing-to-ten-eu-countries?hsLang=en

[9] Element Biosciences, "Element Biosciences Announces Upsized Series E to Accelerate Global Growth Across Ecosystem of Genomic, Multiomic, and Clinical Research Solutions," June 9, 2026. https://www.elementbiosciences.com/news/element-biosciences-announces-upsized-series-e-to-accelerate-global-growth-across-ecosystem-of-genomic-multiomic-and-clinical-research-solutions?hs_amp=true

[10] 10x Genomics, Inc. and President and Fellows of Harvard College v. Element Biosciences, Inc., Case No. 1:26-cv-00538, U.S. District Court for the District of Delaware, 2026. https://dockets.justia.com/docket/delaware/dedce/1%3A2026cv00538/93114

[11] Element Biosciences, "Element Biosciences Responds to 10x Genomics Patent Infringement Complaint," May 8, 2026. https://www.elementbiosciences.com/news/element-biosciences-responds-to-10x-genomics-patent-infringement-complaint

[12] Element Biosciences, "About Element Biosciences," Company Overview and History. https://www.elementbiosciences.com/about

[13] Element Biosciences, "VITARI — Scale without the premium," Product Specifications. https://www.elementbiosciences.com/products/preorder-vitari

[14] Element Biosciences, "Element Biosciences Achieves ISO 13485 Certification, Establishing Quality Foundation for Forthcoming Diagnostic Applications," June 17, 2026. Element Biosciences Newsroom. https://www.elementbiosciences.com/news

[15] Element Biosciences, "Element Biosciences Prevails in German Patent Case Against Illumina," July 14, 2026. https://www.elementbiosciences.com/news/element-biosciences-prevails-in-german-patent-case-against-illumina