Shares of genome analysis company Bionano Genomics, Inc. (BNGO) jumped 4.9% on Tuesday and closed at $5.40 in extended trade after the company announced that it signed a definitive agreement to acquire BioDiscovery, Inc., a genomics data-focused software company, for $100 million. The consideration will be paid in a combination of equity and cash.
Bionano Genomics’ position in the market, as one of the foremost players in digital cytogenetics and comprehensive genome analysis, is expected to further solidify with this buyout. The acquisition will give Bionano Genomics access to BioDiscovery’s expertise in delivering superior data analysis, visualization, interpretation and reporting solutions.
The CEO of Bionano Genomics, Erik Holmlin, said, “This acquisition accelerates our efforts to make OGM ubiquitous by enabling us to simplify the assessment of clinically-relevant variants in cytogenomics applications, potentially reducing interpretation time per sample and expanding our reach into the discovery and translational research markets where the combination of NGS and OGM can reveal more answers in genetic disease and cancer research.” (See Bionano Genomics stock chart on TipRanks)
Two months ago, Maxim Group analyst Jason McCarthy assigned a Buy rating on the stock with a price target of $10, which implies upside potential of 86.6% from current levels.
The Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 2 unanimous Buys. The average Bionano Genomics price target of $10 implies that the stock has upside potential of 86.6% from current levels. Shares have gained 808.5% over the past year.