There’s no denying that shares of life sciences company Bionano Genomics (NASDAQ:BNGO) aren’t as cheap as they were in 2020. Yet, due to a recent price pullback, BNGO stock is more attractive than it has been in a while.
Like all biotechnology investments, there’s risk involved with Bionano Genomics. Yet, if you believe in the future of genome mapping technology, this company is a solid one for a small capital position.
I say “small” because BNGO stock is a fast mover. So, be sure that you can tolerate some volatility before you take a position in the shares.
That being said, a closer examination of Bionano Genomics should reveal a company with great promise — both clinically and financially.
BNGO Stock at a Glance
As I alluded to earlier, traders were able to invest in Bionano Genomics shares at a much lower price in 2020 than today.
It was truly astounding when BNGO stock rallied from 50 cents in December of last year. Much to the investors’ delight, the stock reached a 52-week high of $15.69 in February 2021.
There’s a lesson to be learned here about taking profits. When a stock goes up 3,000%, there’s absolutely nothing wrong with selling your shares.
Thus, BNGO stock pulled back sharply from its peak price over the ensuing months. As of Aug. 3, the price landed at $5.92.
This is an opportunity for folks who’ve been sitting on the sidelines to start accumulating the stock.
If it gets back to the prior peak, that wouldn’t be a 3,000% gain by any means. Yet, it would still represent substantial returns.
At the very least, revisiting $10 is a reasonable target for BNGO stock. Anything above that would be the icing on the cake.
The Gold Standard
Bionano Genomics has more than one product, but the company’s best-known one is called the Saphyr system.
This is described as “a genome imaging tool for high-speed, high-throughput structural variant detection and analysis with exceptional sensitivity and specificity.”
The Saphyr system is based on the idea that a range of conditions can be detected quickly through structural variations. These conditions include cancers and developmental disorders, among others.
Notably, the Saphyr system “reveals structural variants (>500 bp), at sensitivities as high as 99%, with false positive rates below 2%.”
Moreover, results obtained by the University Hospitals Leuven, Belgium, in July with Bionano’s Saphyr system confirmed it to be the gold standard of optical genome mapping tools.
During the research study, an assay was developed for whole genome analysis of 40 acute lymphoblastic leukemia subjects.
The Saphyr system’s method of optical genome mapping went head-to-head against traditional assay methodologies.
I’m sure you’ll agree that, based on a multitude of criteria, Bionano’s platform was the clear winner.
Noting the Benefits
For one thing, the Saphyr system reduced the turnaround time substantially.
Getting to a report-able result only took one week, compared to the four weeks with traditional methods.
Related to that, the Saphyr system involved less hands-on time for laboratory personnel, as well as less time needed for data analysis, relative to traditional methods.
Improved outcomes were also noted. In particular, an additional 5% of cases “resulted in an improvement in treatment recommendation from enhanced prognostic stratification using [optical genome mapping] relative to traditional methods.”
Plus, genome mapping offered a higher yield of pathogenic findings. More precisely, 5% of the observed cases yielded additional pathogenic findings using the optical genome mapping method, which would be missed by traditional methods alone.
Additionally, the Saphyr system proved to be cost-efficient. In fact, the research uncovered a cost reduction of 50% per sample by using optical genome mapping instead of the combination of traditional methods.
Clearly, there are notable benefits of optical genome mapping. Bionano Genomics is leading the way in this field with the Saphyr system.
At the same time, the BNGO stock price has pulled back from its peak.
Therefore, we can observe cutting-edge medical technology, coupled with a low share price.
It’s a compelling combination that deserves the attention of any risk-tolerant biotech investor.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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