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.
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.