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Bionano Genomics More Than Doubles Q3 Revenues

NEW YORK – Bionano Genomics reported after the close of the market on Thursday a 112 percent year-over-year revenue increase for the third quarter.

For the three months ended Sept. 30, the San Diego-based genomic analysis provider reported $4.7 million in revenues compared to $2.2 million a year ago and besting analysts’ average estimate of $4.2 million. 

The increase was largely driven by heightened demand for the company's Saphyr optical genome mapping, or OGM, platform as well as greater demand for its consumables and reagent rental program.

"We sold 3,969 nano channel array flow cells during the third quarter," Erik Holmlin, CEO of Bionano, said during a conference call on Thursday. "This is the highest number of flow cells that we've sold in any quarter." The company also increased the installed base of its Saphyr systems to 141 at the end of Q3 from 121 at the end of the second quarter. 

"We believe we're on track to reach our goal or even exceed the goal of 150 Saphyr systems installed worldwide by the end of 2021," Richard Shippy, Bionano's chief business officer, said during the call. 

In the services area, Bionano released a protocol for isolating ultra-high molecular weight DNA from samples typically used for prenatal analysis, such as from amniocentesis and chorionic villus sampling. This enables the company to expand Saphyr's capabilities and potentially enter new markets. 

Bionano’s Q3 net loss swelled to $20.8 million from a net loss of $10.8 million a year ago. The firm did not report loss per share.

The company's Q3 R&D spending nearly tripled to $6.5 million from $2.3 million a year ago, while its SG&A expenses jumped 76 percent to $15.3 million from $8.7 million.

Operating expense increases were mainly driven by a $1.8 million headcount increase and a $1.5 million increase in R&D related to supply chain development costs. Investments in supply chain development are intended to lower future production costs and support higher volumes, the company said. Although chips in some Bionano instruments faced shortages, Holmlin said during the call that the company was able to find alternative sources and build an inventory that is expected to buffer Bionano against possible delays in future shipments.

Bionano finished Q3 with cash and cash equivalents of $140.7 million and short-term investments totaling $185.3 million.

Bionano completed its acquisition of BioDiscovery on Oct. 18. The company's transaction consideration for this deal was up to $100 million in cash and equity. A portion of the equity is subject to vesting based on continued service of key employees and a portion of the cash is contingent on achieving full integration of OGM data into BioDiscovery's software platform. 

"As a result of the acquisition," said Holmlin, "we believe we've become the first and only company to provide truly comprehensive genome analysis solutions that utilize optical genome mapping with our Saphyr system and the industry leading platform-agnostic software from BioDiscovery which transforms Bionano from being the structural variation company into a broad genomics data solutions provider." 

In early Friday trading on the Nasdaq, shares of Bionano were down around 7 percent at $5.51.

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