Illumina (ILMN), a leading genetic sequencing specialist, saw its stock plummet 5.04% in Thursday's trading session amid growing concerns over the Trump administration's sweeping budget cuts and layoffs at key U.S. health agencies. The move reflects broader worries about the future of research funding and drug approvals in the life sciences sector.

The sharp decline comes as the U.S. government began laying off 10,000 workers at health agencies, including the Centers for Disease Control and Prevention (CDC), the National Institutes of Health (NIH), and the Food and Drug Administration (FDA). These cuts are particularly alarming for companies like Illumina, which rely heavily on government-funded research and a robust drug approval process.

Analysts point to multiple factors contributing to Illumina's stock drop. The company has already been grappling with softening lab demand and Chinese sanctions resulting from an escalating trade war. Now, with top scientists responsible for approving vaccines and pharmaceuticals leaving key positions at the FDA, there are serious concerns about delays in drug development and approvals. This uncertain regulatory environment, coupled with potential reductions in research grants, could significantly impact Illumina's business prospects and those of the entire life sciences industry.