Originally, the 3.36 mln share IPO was expected to price within a range of $8-$10. At the mid-point, the IPO would have raised $30.6 mln in total gross proceeds under those terms. With the IPO pricing at $6.125, however, the deal raised only $20.6 mln in proceeds.
The lead underwriter on the IPO was Roth Capital Partners and the stock is set to open for trading later this morning on the Nasdaq.
BNGO is a life sciences instrumentation company in the genome analysis space. BNGO develops and markets the Saphyr system. This platform improves the search for new diagnostics and therapeutic targets and to streamline the study of changes in chromosomes. Looking at these areas can lend insight into oncology, genetic diseases, and chromosomal variations in human genetics.
The company says that its approach to measuring genome structure and structural variation is novel and highly differentiated. For instance, its Saphyr system directly observes extremely long genomic DNA without any amplification to construct a physical map that accurately assigns the chromosomal location, order, orientation and quantity of all the genome’s functional elements.
The Saphyr system is comprised of an instrument, chip consumables, reagents and a suite of data analysis tools. In terms of the market opportunity, the worldwide market for genomics products and services is expected to reach approximately $23.9 bln by 2022, up from approximately $14.7 bln in 2017, representing a compound annual growth rate of 10.2%.
BNGO also believes that the discovery research and cytogenetics segments together comprise an addressable opportunity for it to sell up to approximately 8,500 Saphyr systems, representing a current total instrument market opportunity of approximately $2.1 bln.
Regarding the financials, for the six months ended June 30, 2018, revenue increased by 32% to $5.2 mln. Average sales prices of instruments decreased by 7% while consumables increased by 37%. BNGO began selling its new Saphyr system in February 2017 which includes higher priced consumables than those previously sold.
Operating loss shrunk to ($8.3) mln from ($13) mln in the year ago period. As of June 30, 2018, the company had cash and equivalents of $33 mln on a pro forma basis.