Life sciences company Bionano Genomics (NASDAQ:BNGO) stands apart from the competition as an innovator in optical genome mapping. Yet, BNGO stock has been stuck in a range and seems to be going nowhere.
The company’s flagship product is known as the Saphyr system. It’s “a genome imaging tool for high-speed, high-throughput structural variant detection and analysis with exceptional sensitivity and specificity.”
Through this innovative system, a range of conditions can be detected quickly through structural variations. These conditions include cancers and developmental disorders, among others.
It’s exciting to consider the applications of this potentially life-saving technology. As we learn more about Bionano and the Saphyr System, it seems inevitable the BNGO stock will stage a major breakout.
BNGO Stock at a Glance
Interestingly, the Bionano share price wasn’t always range-bound.
In December of last year, the stock only cost 50 cents. After a sharp rally, however, it reached a 52-week high of $15.69 in February 2021.
Was this due to the action of Reddit traders? As you may recall, meme-stock mania was in full effect in February.
It’s certainly possible that they contributed to the rally. Unfortunately, it seems that the buyers didn’t stay in the trade for very long.
BNGO stock pulled back from its peak price over the ensuing months, landing at $5 and change in May.
And in mid-September, the share price was still at $5 and change. Clearly, the market is testing the investors’ patience.
The only way to win this game, if you truly believe in the company, is to stay the course — and stay informed on the latest developments with Bionano Genomics.
A Transformational Period
The second quarter of 2021 was marked by robust revenues for Bionano Genomics — driven, as you might expect, by increased adoption of the Saphyr system.
CEO Erik Holmlin went so far as to call the quarter and 2021’s first half “one of the most transformational periods in Bionano’s history.”
That’s a strong claim, but the data seems to back it up.
Impressively, Bionano generated total revenue of $3.9 million, up 226% on a year-over-year basis.
How could the company possibly have achieved triple-digit revenue growth? For one thing, Bionano shipped 13 Saphyr systems during the quarter.
As a basis of comparison, the company only shipped six Saphyr systems shipped during the year-ago quarter. By June 30, Bionano Genomics 121 Saphyr systems were installed.
Moreover, the company sold 2,742 nanochannel array flow cells during the second quarter. This represents 93% growth over the same quarter in 2020.
In addition, Bionano reported having a rock-solid cash position of $333 million at the second quarter’s end. Therefore, the CEO’s enthusiasm appears to be fully justified.
Global Adoption
Bionano Genomics has its headquarters in California. However, the company’s ambitions for the Saphyr system are global in scope.
As evidence of this, Bionano proudly reported that global molecular diagnostics company NuProbe Global, which is based in Shanghai, China and Houston, Texas, has adopted the Saphyr system for optical genome mapping.
NuProbe intends to use this system, along with its own technology, for research and product development in the fields of reproductive health and oncology liquid biopsies.
By combining the Saphyr system “with NuProbe’s QASeq technology, we can obtain accurate DNA breakpoint location information, thus facilitating the research in gene fusion,” according to NuProbe USA Head of Innovation David Yu Zhang.
As an investor, you can leave the science to the scientists. The important thing to know is that more businesses, in more geographies, are preparing to leverage Bionano’s powerful and precise optical genome mapping technology.
The Takeaway
The Bionano CEO called 2021’s first half “transformational” for the company, and he’s right about that.
Now we’re in the second half of the year, and BNGO stock has been trading sideways for a while.
With the increasing adoption of the Saphyr system, however, a strong finish to the year might be in store for Binonano and its investors.
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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