Bionano Genomics (BNGO) stock was up by 9.85% at close yesterday. The company said yesterday that the adoption of its Saphyr system for optical genome mapping by two large laboratories belonging to the National Health System of the United Kingdom. The Saphyr system is the company's main product and is used for ultra-sensitive and ultra-specific structural variation detection. This news pushed the company's stock rose yesterday, but the question is that the stock still fell 53% over the past month, should you buy it right now?
As customers limiting their lab operations in response to COVID-19 restrictions that causing the reduction of the demand for its products. The company's revenue was $8.5 million in 2020, was down by 18% from 2019 and its net loss was also enlarged. However, even in this context, the installed base of the company's Saphyr systems was 97 at the end of 2020, it still got an increase of 24 from year-end 2019.
The company also completed the acquisition of diagnostics services provider, Lineagen, an important step toward accelerating the clinical adoption of Saphyr, further supporting the company's market leadership in digital cytogenetics and comprehensive genetic diagnostics for pediatric neurodevelopmental disorders.
The company is going to have a prototype of a next-generation high-throughput Saphyr, which will expand capabilities of optical genome mapping even broader than what they are today. The company expects more Saphyr system installs this year and it will get an increase of 50% year-over-year to 150 systems.
The company said that broadly speaking, there's roughly 2,500 labs worldwide. Probably somewhere between 2 million samples per year being processed for this type of molecular pathology, that represents somewhere in the neighborhood of a $3 billion to $3.5 billion market for the company. This means that there is a huge space to rise which compared to current revenue level of the company.
However, the company has not yet achieved profitability, which will put pressure on the stock, but I am Bullish on the stock in the long run. Investors should continue to pay attention the growth rate of its results, thereby to more accurately evaluate its stock value of the company.
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