The bullish thesis for Bionano (BNGO) rests on the potential of its OGM (optical genome mapping) platform Saphyr to become a disruptive force in the cytogenetics space.
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In fact, Maxim analyst Jason McCarthy thinks Saphyr could be something of a “game changer.” And announcements the company made last week, indicate it is making progress in its attempts to disrupt the industry.
Bionano disclosed that it is expanding its UK footprint with the addition of two National Health Service (NHS) genetics laboratory hubs – the Newcastle upon Tyne Hospitals NHS Foundation Trust and the Birmingham Women’s and Children NHS Foundation Trust – that will use Saphyr to assess optical genome mapping (OGM) and compare it to traditional cytogenetics.
The labs are looking at the potential of OGM to identify chromosomal anomalies in hematologic malignancies, genetic conditions and specific solid tumors.
“This represents a significant increase to the company’s UK footprint,” said McCarthy, “As well as potentially expanding adoption in digital cytogenetics, which represents a target market for Saphyr.”
Saphyr has already been demonstrating several advantages over traditional cytogenetic techniques, showing “increased diagnostic yield.” Additionally, given traditional cytogenetics heavily rely on labor intensive methods, transitioning to Saphyr not only does away with costly and time-consuming procedures such as cell culture and manual data analysis, it also lowers labs and payers’ costs.
As such, McCarthy thinks Saphyr has the potential to “improve on, and potentially replace, the current approaches with a more efficient, streamlined, and higher resolution workflow.”
As the two NHS labs cater to millions of patients, by bringing on OGM for routine clinical use, Bionano could potentially add a significant new customer to its client list.
To this end, McCarthy reiterated a Buy rating while his $6 price target implies investors will see returns of 172% in the year ahead. (To watch McCarthy’s track record, click here)
2 other analysts have recently posted their reviews on BNGO, and both are also positive, providing the stock with a Strong Buy consensus rating. The average price target is even more bullish than McCarthy’s; at $8, the figure suggests shares will gain 262% over the next 12 months. (See BNGO 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.
