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Bionano Genomics Revenues Increase 3 Percent in Q3

This article has been updated with information from Bionano Genomics' earnings conference call.

NEW YORK (GenomeWeb) – Bionano Genomics reported a 3 percent increase in third quarter revenues after the market close on Wednesday.

Fresh off its initial public offering in August, in which it raised $23.7 million in gross proceeds, the San Diego-based DNA analysis company reported $2.8 million in revenue for the quarter, up from $2.7 million a year ago. Revenues consisted of $2.7 million in product revenue and $128,542 in other revenue.

"We have seen widespread adoption of the Saphyr [system] in all categories of the market we are targeting" said CEO Erik Holmlin in a conference call to discuss the results. 

While the company does not break out instrument and consumables revenues, Holmlin did say that consumables sales, which are expected to drive the firm's business in the long term, are growing at a faster rate than instrument sales.

The Saphyr platform complements sequencing, he said, because of its ability to find structural variants that sequencing technologies miss. This will remain the case, he added, even after the proposed acquisition of Pacific Biosciences by Illumina goes through. "Saphyr sees variants these systems miss," he said. "We remain perfectly complementary to those tools."

Being able to integrate Saphyr data with several other data types in the analysis is going to be particularly important, he said, which is why Bionano partnered with Genoox earlier this year on a data analysis platform for short-read and Saphyr data. "Software solutions that fully integrate multiple data types, including clinical annotations, [are] an important step in the overall value chain," he said, and more collaborations like the one with Genoox are likely to follow.

Holmlin also pointed out that the Saphyr is gaining traction in the cytogenetics community, where it could serve as a possible alternative to a range of older technologies. "We have seen adoption of our platform by major labs in North America, Europe, and China for applications in cytogenetics areas," he said.

The company is also betting on expanding its market geographically, he added, especially in China, for which it recently hired a commercial leader.

Research and development costs for the quarter amounted to $2.5 million, down 17 percent from $3.0 million in the same quarter last year. Selling, general, and administrative costs totaled $3.2 million, up 3 percent from $3.1 million in Q3 of 2017.

Bionano booked a net loss of $4.9 million for the quarter, down 4 percent from $5.1 million in the year-ago quarter.

As of Sept. 30, the firm had $20.7 million in cash and cash equivalents, which includes the proceeds from the IPO.

"We are sufficiently capitalized to pursue our markets with a progressive global commercialization strategy, coupled with product development initiatives designed to expand the utility and the ease of use of our Saphyr system, all to grow our business," Holmlin said.

Bionano's shares were stable at $7.10 in morning trading on the Nasdaq.