By Sneha S K

April 9 (Reuters) - Gene sequencing equipment maker

PacBio plans to cut around 120 jobs and lower expenses

due to fresh tariffs and reduced funding for federal health

agency National Institutes of Health (NIH), it said on

Wednesday.

The company plans to eliminate about "80 current positions

and 40 open or planned positions across the organization," it

said in an emailed statement.

WHY IT'S IMPORTANT

PacBio is the first life sciences company to announce cost

saving measures after the NIH on February 7 said it would

sharply reduce the rate at which it reimburses research

institutions for "indirect costs," which include laboratory

space, faculty, equipment and infrastructure.

A U.S. judge early last month blocked the Trump

administration from cutting the funding.

Universities warn the cut would lead to layoffs, lab

closures and a curtailment of scientific and medical studies.

On March 27, U.S. Secretary of Health and Human Services

Robert F. Kennedy Jr announced plans to cut 1,200 jobs at the

NIH, as part of his effort to reshape federal public health

agencies.

BY THE NUMBERS

The company plans to reduce its projected annual adjusted

operating expense run-rate by $45 million to $50 million by

year-end.

It had earlier forecast a run-rate of $270 million to $280

million.

The life sciences company also reiterated its full-year

revenue forecast of $155 million to $170 million.

It also reported preliminary first-quarter revenue of $36.9

million on Wednesday, higher than estimates of $33.5 million,

according to data compiled by LSEG.

KEY QUOTES

The cost cutting is likely to be viewed positively but

"caution from here is still warranted," Stephens analyst Mason

Carrico said.

MARKET REACTION

Shares of the company, which had fallen about 53% since Trump

took office, rose 8.7% in early trade.