Complete Genomics Plans 2010 IPO to Raise $86M

Stock will join Nasdaq under ticker GNOM

Complete Genomics Inc. plans to raise up to $86.2 million in an initial public offering to help fund improvements and expansion of its DNA sequencing technology. Complete Genomics will join the Nasdaq exchange after its 2010 IPO, and will trade under the ticker GNOM after the stock offering.

The Mountain View, Calif., company said in its SEC registration statement that it has developed and commercialized “an innovative DNA sequencing platform that we believe will become the preferred solution for complete human genome sequencing and analysis.”

Price is key for its assembly-line technology. Its genome sequencing will come in at less than $1,000; a price that would make the technology widely available. As of May 2009 the company was providing sequencing for about $4,000 for each genome, the San Jose Mercury News reported at the time.

The company reports a backlog of 500 genomes for sequencing and expects to hit a rate of 400 genomes a month by year-end, according to its SEC filing.

The company said its product will offer academic and biopharmaceutical researchers complete analysis without requiring them to invest in equipment such as in-house sequencing instruments and high-performance computing resources.

The company’s work can be used in clinical trials or for research of rare diseases and cancer.

Complete Genomics, which started operations in March 2006, brought in its first revenue from the sale of genome sequencing services in the last quarter of last year.

But its debt now is more than $95 million.

“Our only source of revenue is our human genome sequencing service, which is a new business model in an emerging industry, and failure to achieve market acceptance will harm our business,” the company said in the statement.

The company says it is building a high-throughput human genome sequencing center to allow academic and biopharmaceutical researchers to conduct large-scale complete genome studies.

Complete Genomics said that in the future the center will provide cancer sequencing, transcriptome analysis, small RNA profiling and discovery, and methylation.

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