Biotechnology firm Bionano Genomic (NASDAQ:BNGO), which specializes in the development of a nanoscale imaging and analytics platform, generated significant headlines when it announced the results of its landmark research evaluating the utility of optical genome mapping (OGM) myelodysplastic syndrome (MDS). Essentially, the OGM methodology detected higher incidences of pathogenic elements compared to traditional mapping mechanisms, thus bolstering BNGO stock on the very positive implications for delivering superior results.
Specifically, the University of Texas MD Anderson Cancer Center reported that in its utility research, the use of the OGM methodology resulted in 17% to 21% of study subjects having different prognostic risk scores in comparison to the traditional karyotyping mechanism. In addition, OGM revealed additional pathogenic variants in 13% of research participants.
The variance of mapping results combined with the discovery of additional pathogenic variants not discovered through traditional means is crucial for facilitating net positive health outcomes. Per Bionano’s press release, “Prognostic risk is a component of disease management protocols outlined in treatment guidelines followed by oncologists on a global basis. Proper risk classification can help improve outcomes, including overall survival.”
Corresponding author Dr. Rashmi Kanagal-Shamanna, from MD Anderson stated in part, “The results of this study demonstrate that we are grossly under-evaluating the degree of genomic aberrations. Most patients with high-risk MDS are not responsive to available therapies, pointing to the urgent need for new therapeutic alternatives that will improve the clinical outcomes of these patients and better tools to help in that pursuit.”
BNGO Stock and the Fundamental Justification of Bullishness
Understandably, investors piled into BNGO stock, as the underlying OGM could potentially change the game when it comes to early detection of high-risk diseases and conditions like MDS. Unfortunately, MDS features a highly variable prognostic profile, with some patients living for years with little to no treatment while others require aggressive regimens. Therefore, getting on top of the situation quickly aids substantially in addressing the disease.
Further, prior research in OGM confirms the encouraging findings of the Bionano study. According to research published in the National Library of Medicine, the OGM methodology detected 12 additional anomalies compared to traditional mechanisms (including karyotyping) in a study focused on acute lymphoblastic leukemias.
Therefore, the rise of BNGO stock isn’t just based on a one-off event. The underlying OGM platform has attracted interest from researchers around the world seeking superior methods in accurately assessing and identifying pathogenic variants.
A Rocky Road This Year
Despite the positive research announcement, investors should recognize the difference between scientific developments and market momentum. While BNGO stock is up big on Tuesday, on a year-to-date basis, it has shed more than 34% of its market value. Ultimately, prospective buyers should exercise extensive due diligence before considering a position.
On the date of publication, Josh Enomoto did not have (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.