Important Catalysts Ahead Should Strengthen Value Proposition

Bionano (BNGO) is a life sciences company looking to make an impact in the cytogenetics space – that is in the study of chromosomes. This it is planning to do via its OGM (optical genome mapping) system Saphyr. BTIG’s Sung Ji Nam thinks these aspirations should be taken very seriously indeed.

“We continue to believe BNGO is on the cusp of disrupting the cytogenetics market currently served by karyotyping, chromosomal microarray and FISH techniques, and the company has made significant progress over the last couple of years in terms of strengthening clinical evidence for OGM as potential first-line cytogenetics solution and gaining commercial traction for Saphyr instrument and consumable sales,” the analyst recently said.

Ji Nam’s comments come off the back of the best year so far for Saphyr placements, with the company anticipating another excellent year ahead.

Furthermore, to help cement OGM’s status as part of standard of care in genetic disease and cancer diagnosis, there are currently four large clinical trials underway which should be concluded over the next couple of years. Of these, by the end of 2022, the postnatal study should be completed, interim data from the prenatal study should get a readout, while enrollment for the hematological malignancy study should also kick off.

By next year, the company will also launch the next-generation, higher-throughput OGM system. Combined with the eventual publications from the studies, Ji Nam sees these as “important catalysts for accelerated penetration into the cytogenetics market over the next several years.”

So, all good news for BNGO investors apart from one nagging detail. Like many others, Bionano stock hasn’t been immune to the market’s downturn – shares have shaved off 69% of their value over the past year. Therefore, amid recent “sector-wide multiple/ valuation contractions,” Ji Nam has lowered her price target from $10 to $7. No need to get too concerned, there’s still potential upside of 212% from current levels. The analyst’s rating stays a Buy. (To watch Ji Nam’s track record, click here)

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Over the past 3 months, only two other analysts have thrown the hat in with a bullish view on this life sciences company. The two additional Buy ratings provide Bionano with a Strong Buy consensus rating. With an average price target of $6.50, investors stand to take home ~190% gain, should the target be met over the next 12 months. (See Bionano stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.