Bionano Genomics (BNGO) is on the cusp of disrupting the cytogenetics market. So believes BTIG analyst Sung Ji Nam, and the company’s latest quarterly results and outlook are further evidence of the inroads the life sciences company has been making.
It was a record quarter for both revenues and shipments of the company’s OGM (optical genome mapping) platform Saphyr. With an installed base of 141 systems, Bionano is on track to meet its target of ~150 by the end of the year.
“2021 Target milestones are well within reach,” Nam said, “And continued progress on pivotal clinical studies well-position BNGO for significant growth acceleration over the next several years.”
For the four large clinical studies the company has set into action with the objective of demonstrating OGM’s utility in prenatal, pediatric, hematological malignancies and solid tumor markets, the company is on course to present interim results from the pediatric clinical study before the year’s end. Furthermore, data generation from the prenatal study should begin in the current quarter.
Q3’s highlights included bringing software company BioDiscovery under the fold; by integrating OGM data, Nam says the acquisition could “potentially enable the most comprehensive variant analysis platform.” The quarter also saw the commercial launch of products which allow for the analysis of ultra-high molecular weight DNA for prenatal applications (using amniocentesis and CVS samples).
Leading cytogenetics laboratories around the world continue to push ahead with OGM adoption, while year-to-date, 132 publications have been related to OGM technology, 30 of which occurred in Q3.
Apart from the results from the pediatric clinical study, other upcoming catalysts in this quarter include the “validation” of LDTs by 3 sites in the prenatal and pediatric clinical testing, and a reveal of the Initial prototype of the next-gen Saphyr which will boast high throughput and allow for ~70,000 samples per year.
Based on all of the above, Nam rates BNGO a Buy along with a $10 price target. Investors stand to pocket ~96% gain should the analyst’s thesis play out. (To watch Nam’s track record, click here)
Two other analysts have recently thrown the hat in with BNGO reviews, and they are both positive, making for a Strong Buy consensus rating. They have even bigger shares gains in mind; going by the $12 average target, shares are anticipated to appreciate by 121% over the next 12 months. (See BNGO stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.