10x Genomics, Inc. (TXG) stock plunged 9.83% in the pre-market session on Thursday after the company reported disappointing fourth-quarter results and issued weak guidance for 2025, further exacerbated by concerns over potential cuts to National Institutes of Health (NIH) funding.

The biotech company, known for its gene sequencing and analysis products, faced a challenging year in 2024, with total revenue for the year decreasing by 1% compared to 2023. The company cited a difficult macroeconomic environment as a key factor impacting its performance. Additionally, 10x Genomics' revenue is heavily reliant on NIH funding, which accounts for 20-25% of its total revenue. The recent announcement of caps on indirect cost reimbursements by the NIH has raised concerns about the potential impact on the company's future revenue streams.

Moreover, 10x Genomics provided lackluster guidance for 2025, projecting revenue growth of only 0-3% compared to 2024. This disappointing outlook, coupled with lingering uncertainties surrounding NIH funding and the company's ongoing reorganization efforts, has led to a significant sell-off in the stock during the pre-market session.