Why Bionano Has Tremendous Potential

Bionano Genomics’ (NASDAQ:BNGO) products appear to be quite valuable and meaningfully superior to the standard systems used to map genomes. As a result, I believe that BNGO stock is likely to climb much further in the coming years. And, I recommend that longer-term investors buy the shares.

a visualization of DNA in a vial. bngo stock
Source: Connect world / Shutterstock.com

The company’s top product, Saphyr, can be used to analyze the genetic material, or genome, of cancerous tumors and detect “structural variations” that can cause “many diseases and conditions, including cancers.. developmental disorders, and genetic disease” Moreover, Saphyr has uncovered “structural variants” in genomes that may increase the likelihood that some individuals who get the novel coronavirus will become very ill.

Why Genome Research Is Important

Genomic research enables treatments to be more closely tailored to each individual. It also facilitated “genetic diagnostics for many patients, pregnancy-related counseling, new drug treatments, and in some cases, gene therapies.”

More specifically, by identifying the underlying causes of diseases, genomic research makes developing treatments easier. And through uncovering the genes that cause diseases, it enabled individuals with such genes to obtain early treatment or other types of prompt intervention.

Further, the analysis of “cancer genomes” enabled researchers to create new anti-cancer drugs. Finally, researchers recently began analyzing the genetic material of individual cells. A number of gene therapies for various diseases are now being developed.

Saphyr’s Apparent Superiority

Last month, according to an independent study, a method that used a leading, competing genomic analysis system – PacBio HiFi – identified just 72% of the large structural variations detected by Bionano’s Saphyr, Bionano reported. It added that many of the structural variations overlooked by PacBio HiFi are related to neurodevelopmental disorders.

Moreover, Bionano wrote that its product was also shown by other studies to more effectively detect additional structural variations that are “highly clinically relevant, especially in cancer.”

Meanwhile, Saphyr costs much less than the method which utilizes PacBio. Specifically, Saphyr’s price tag is “less than $500 per genome.” The method that incorporates PacBio costs “between $10,000 and $20,000 per genome,” Bionano reported.

Vast Potential

On Jan. 18, third-party scientists reported using Saphyr to locate structural variations “in severe COVID-19 patients that affect genes involved in immunity, airway mucous, and viral replication.” These variations “may predispose (people) to severe or mild COVID-19 disease.” Such variations were not detected by other, competing tools  in previous major studies, Bionano reported.

If Saphyr is able to help scientists determine which people are more susceptible to severe Covid-19 symptoms, those people could take more extensive isolation measures. Also, they could receive treatments and vaccines before other individuals who are less vulnerable.

Also important is that the product could determine which people are more vulnerable to many other communicable viruses, including HIV and hepatitis. As with Covid-19, by analyzing individuals’ vulnerability, Saphyr could enable health professionals to determine which people to protect most and treat first.

Additionally, a preliminary study determined that Saphyr may be used to develop a more sensitive test for brain tumors. It may be more efefctive in locating structural variations in the tumors. Finally, the product allows “study of a broad range of currently inaccessible genetic diseases,” Seeking Alpha reported on Jan. 15.

The Bottom Line on BNGO Stock

Saphyr allows diseases to be more effectively researched than competing products. And, it is tremendously cheaper than other genomic-mapping tools. But it could also more successfully determine patients more susceptible to severe cases of viruses. These viruses include Covid-19.

Given these capabilities and attributes, the system will prove to be tremendously valuable, I believe, for  healthcare professionals, healthcare entities, and all of humanity.

As a result, I think that BNGO stock, which currently has a market capitalization of just $1.8 billion, can surge high above its current levels in coming years.

On the date of publication, Larry Ramer held a long position in Bionano. 

Larry has conducted research and written articles on U.S. stocks for 13 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Among his highly successful contrarian picks have been solar stocks, Roku, and Snap. You can reach him on StockTwits at @larryramer. Larry began writing columns for InvestorPlace in 2015.


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