GenomeWeb Top 40 Down 14 Percent in October; Second Consecutive Month With Double-Digit Decline

NEW YORK – Stocks of molecular diagnostics and omics companies were down in October, posting losses that outpaced a decline in the broader stock market for the second month in a row.

Overall, the GenomeWeb Top 40 was down 14 percent. By comparison, the Dow Jones Industrial Average was down 1 percent, the Nasdaq was down 3 percent, and the Nasdaq Biotech Index was down 7 percent. Of the 40 firms tracked by GenomeWeb, 37 saw their stock prices fall month over month, two saw their share prices rise, and one was flat.

Olink was far and away the biggest gainer among Top 40 firms in October, posting a 69 percent rise in stock price month over month. The jump was driven by Thermo Fisher Scientific's announcement that it will acquire the company for roughly $3.1 billion, or $26 per common share. Prior to the announcement, Olink had been trading at around $15 per share.

NeoGenomics was October's other winner with shares up 14 percent month over month. The company released two new cancer tests during the month, a next-generation sequencing panel for comprehensive genomic profiling of hematologic malignancies and a therapy selection panel designed for early-stage non-small cell lung cancer patients, but it otherwise did not release any news that appeared to drive the gains.

In a note to investors, BTIG analyst Mark Massaro said the bank believes NeoGenomics "has not traded on fundamentals in recent weeks" and that it expects "greater than normal volatility on the Q3 update."

Bionano posted the largest decline in stock price in October with shares down 54 percent month over month. During the month, the company announced layoffs eliminating 66 jobs. It also plans to reduce its facility costs and other spending unrelated to headcount.

Bionano also priced an $80.0 million financing in convertible notes and warrants and announced preliminary Q3 revenues in the range of $9.1 million to $9.3 million, putting it at the high end of the revenue guidance of $8.8 million to $9.2 million it provided in August.

Cue Health posted the second-largest decline with shares down 32 percent. On Oct. 6, a group of stockholders who collectively own more than 7 percent of Cue's outstanding stock, including Kelly Day, one of the firm's founders, sent a letter to the company's board expressing concerns about its spending and management.

The shareholders said the board must "take immediate action to stabilize the company, substantially reduce its cash burn, and focus on its core diagnostic business," adding that Cue's core technology and diagnostic platform should receive the full attention and resources of the board and management team.

The letter follows a similar letter in August from investment management firm Tarsadia that raised concerns about the company's management.

Quantum-Si had the third-largest decline in October with shares down 28 percent, though reasons for the decline are unclear.