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Bionano Genomics' Second Chance

Mar. 01, 2021 6:39 AM ETBionano Genomics, Inc. (BNGO)20 Comments
Bashar Issa profile picture
Bashar Issa


  • An increasing number of scientists now realize the limitations of gene-sequencing in clinical diagnostics, opening an opportunity for growth, highlighted by the rising number of Saphyr mentions in academic publications.
  • Recent technological advancements in the gene-editing arena bode well for BNGO's market. Such developments include approvals of gene therapies and the discovery of CRISPR.
  • The recent surge in BNGO's share provides relief from the financial burdens, allowing management to enhance its product offerings.

Investment Thesis

Bionano Genomics (NASDAQ:BNGO) offers investors the opportunity to profit from the growing gene-editing market without the risks associated with investing in biotech companies. BNGO is a supplier of genome analysis equipment that helps scientists in their quest to find new drugs.

The company's product is complementary to gene-sequencing, which has limits on detecting structural variations of chromosomes. Structural variations cause many diseases. As the market for gene-therapies develops, the scope of drug development will widen to include structural mutations, boding well for future demand for the company's product.

Buzzing Market Brings a Second Chance

Rapid technological changes in the gene-editing market bring lucrative opportunities (and risk) for investors seeking early exposure to a promising healthcare trend. In December 2017, the FDA approved Novartis' (NVS) Kymriah, the first gene-editing drug in the administration's history. Since then, hundreds of gene-based therapies have entered clinical trials to develop medications for diseases that were considered incurable. The discovery of CRISPR is thought to have the potential to bring the human genome under full control. This technology's disruptive nature is demonstrated by the 2020 Nobel Prize awarded to the two scientists behind CRISPR discovery.

The renewed interest in the industry comes as a fresh start for companies like BNGO, which operated on losses for years and faced financial difficulties that distracted management, such as technical default on debt and a notice of delisting. With higher share price and a more robust enterprise value, these problems are hopefully behind the company now, allowing management to focus on what matters, bringing their product to the market and realizing BNGO's potential.

The Product

BNGO produces one product called Saphyr, which allows scientists to detect structural variations in human chromosomes. Such variations skip gene-sequencers. The system comes with a screen, keyboard, a processor, and a server and costs ~$150 thousand.

This article was written by

Bashar Issa profile picture
Bashar is a contributing writer at Seeking Alpha, focusing on Long/Short investment ideas, with a geographic focus in North America. Before that, Bashar worked at an Investment Fund in the United Kingdom. He has a Master's degree in Finance from the Queen Mary University of London and a Bachelor's degree in Economics from Middlesex University.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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