Bionano files $30M IPO to fund its long base pair DNA sequencers

Nasdaq
The company says its Saphyr system challenges other next-generation devices at sequencing longer molecules, and in detecting larger structural variations. (Nasdaq)

DNA analyzer manufacturer Bionano Genomics filed for a $30 million IPO, with plans to expand its commercial operations and potentially establish a direct commercialization foothold in China. It plans to use the Nasdaq symbol BNGO.

The San Diego-based company says its Saphyr system challenges Illumina’s and other next-generation devices at sequencing longer molecules, and in detecting larger, possibly missed structural variations in genetic material, ranging from 500 to over 500,000 base pairs for certain deviations.

Sponsored by GenScript

Accelerate Biologics, Gene and Cell Therapy Product Development partnering with GenScript ProBio

GenScript ProBio is the bio-pharmaceutical CDMO segment of the world’s leading biotech company GenScript, proactively providing end-to-end service from drug discovery to commercialization with professional solutions and efficient processes to accelerate drug development for customers.

Bionano’s devices are currently only available for research use only, but the company plans to pursue regulatory approvals or clearances in areas outside of life science research, potentially in the realm of laboratory-developed tests, the company said in its prospectus filed in June.

Bionano had originally planned an offering of the same $30 million total, but with a larger price range per share, at $8 to $10, for 3.4 million shares. It now plans to offer 5.5 million shares at $5 to $6, according to Renaissance Capital, which said the company will have decreased its market value by 21% to $85 million, down from $108 million.

The company's investors include Novartis’ venture capital arm, which participated in a 2016 series D round.

RELATED: Illumina’s stock rides wave of high demand for genomic sequencing

This past week, Illumina posted record quarterly revenues driven by the high demand for genomic sequencing in the research industry. Its $830 million haul was buoyed by sales of consumable chips and cells used in its DNA analyzers.

In its prospectus, Bionano cited a Research and Markets report that estimated the worldwide market for genomics products and services is expected to grow to about $23.9 billion by 2022, up from about $14.7 billion in 2017.

Suggested Articles

Everlywell’s sales of at-home diagnostic tests, including one kit for COVID-19, are projected to quadruple this year—and investors have taken notice.

The Tel Aviv-based VC firm focused on digital health has closed a new fund totaling $170 million, with plans to expand to the Asia Pacific region.

LivaNova will sell off its flagging heart valve business to the Swiss firm Gyrus Capital, for a base purchase price of €60 million.