An instruments firm specialising in genome analysis, Bionano Genomics Inc. A platform for ultra-sensitive and ultra-specific structural variant identification developed by the company allows researchers and clinicians to speed up the search for new diagnostics and therapeutic targets and streamline cytogenetics. The Saphyr system is one of these targets. Saphyr, Bionano Chips, Bionano Prep Kits, and Bionano Data Solutions are some of the company’s offerings. Founded in 2003, the company is based in San Diego, California.
Optic genome mapping (OGM) for genome analysis is provided by the genomics business Bionano Genomics, Inc. Pediatric neurodevelopmental disorders and autism spectrum disorders are among the hereditary illnesses for which the company provides diagnostic services.
It promotes and sells the Saphyr system, which provides OGM data to enable the detection of all types of structural variation with extreme sensitivity and precision.
Diagnostic testing for people with autism spectrum disorder and other neurodevelopmental impairments is provided by its Lineagen business. The company’s BioDiscovery division offers a platform-independent software solution for the analysis, visualisation, interpretation, and reporting of copy number variants, single-nucleotide variants, and the absence of heterozygosity across the genome in a single, consolidated view through the integration of sequencing and microarray data.
Forecasts of Stock Prices
Bionano Genomics Inc has a consensus 12-month price target of $7.50, with a high estimate of $14,000 and a low estimate of $6,000 offered by the four analysts who provide this information. In comparison to the previous price of 1.82, the median estimate shows a 312.22 per cent rise in price.
Risky, but Worth a Shot: Bionano Genomics Stock
The stock of Bionano Genomics (NASDAQ: BNGO) has been a rollercoaster ride for stockholders over the last two years. BNGO stock is currently trading at a similar level to what it was before its huge break out in early 2021 began. It could be a multi-bagger in the future because of this fantastic success last year and its enormous potential in genetic analysis. A risk-taking investor may be better suited to owning this stock, but it’s not one to take lightly.
Controversial market analysts and investors have weighed in on the healthcare testing company. And although some believe in the long-term worth of its pioneering genome analysis technology, others may recognise the immense risks connected with its commercial model..
Of course, investing in companies like Bionano carries a lot of risk. However, the company’s upside potential is enormous, and because it has a debt-free capital structure, it may accelerate its expansion ambitions at will.
The Quarter Ended on a High Note
Bionano completed another strong quarter after reporting double-digit top-line growth in the third quarter of the current fiscal year. In the last three months of the year, it saw a 58% increase in revenues to $6.3 million. The company’s preliminary January expectations and the $5.6 million quarter estimate of analysts were easily surpassed. Saphyr, the company’s genome-mapping tool, saw a 69% increase in instals in 2018 compared with 2020.
The company’s sales for the entire year 2021 increased by 111% from 2020 to $18 million, exceeding the average analyst forecast of $17.3 million. Sales are expected to rise by another 33% to 50% in 2022, according to the company’s projections.
Although the company’s business model is exciting, it is possibly the most exciting aspect of the organisation. Because of the greater money, the company can invest in developing new products and increasing its market share. Research and therapeutic applications for the Saphyr device are numerous, according to Bionano’s management. The gadget’s output is unrepeatable. As a result, Saphyr has a significant advantage over the competition right now.
Consumable items will be an important part of the company’s long-term strategy. Saphyr’s use necessitates the purchase of preparation kits and sample chips, which are consumables. For Bionano, this means that these vital tools could become a significant source of recurring revenue in the future.
Restoring Financial Stability
Bionano made a smart move by issuing fresh shares to capitalise on the popularity of its meme stock. In 2021, their equity offers resulted in an almost two-fold decrease in the share price. However, the money provided by the loan allowed the business to pay off its debts and then reinvest in its R&D initiatives.
Bionano had $17.3 million in its bank account prior to the pandemic, which was a respectable sum. But this was not enough to fund its ambitious development aspirations. As a result, it had no choice but to reduce its holdings in the fourth quarter of 2019 from 28 million shares to 289.6 million. This means a ten-fold dilution of shares in just a few years.
Although the debt was $14.9 million by the end of the first half of 2021, significant acquisitions had been made. After the fourth quarter, Bionano had $24.6 million in cash and $226 million in saleable securities. A 76.2 percent increase in its net loss in 2021 is due to a rise in R&D and other expenses, which will be met by its own reserves.
Overall, Bionano’s business has been gaining speed over the previous several quarters, and the company has issued a positive forecast for this year. With more widespread use expected in the future years, the firm has the potential to become a leader in genomic sequencing.
Despite this, the stock’s dangers are plain to see. Long-term investors are particularly concerned about the company’s proclivity for diluting their shares. Further share dilution must be expected to support future expansion, as profitability is still several years away at this point in time. As a result, if you’re searching for a stock that has a lot of room for growth and can handle future share dilution, BNGO stock might be a good option for you.
Muslim Farooque had no stakes (directly or indirectly) in any of the securities mentioned in this article as of the date of publishing. The views and opinions stated here are solely those of the author and do not necessarily reflect those of InvestorPlace.com. Publication Recommendations
Jonathan Herrod is a content writer who enjoys writing about technology, video games, and other topics. The author of informative articles that are well-researched and written with attention to detail has been writing professionally for nearly three years and specializes in the creation of well-researched and written attention to detail articles.