SAN DIEGO - Bionano Genomics, Inc. (NASDAQ:BNGO), a genome analysis solutions provider, has announced a new software marketing agreement with Revvity, Inc. (NYSE:RVTY). Under the agreement, Revvity will incorporate Bionano’s VIA software into its next-generation sequencing (NGS) workflow for newborn sequencing research.
The VIA software is designed to enhance the capabilities of Revvity's NGS solutions by adding an assessment of copy number variation (CNV) and streamlining the interpretation process of the sequencing data.
The collaboration aims to improve the comprehensive reporting features of Revvity's sequencing services, which include DNA extraction, sample quality control, automated library preparation, sequencing, and data management.
Revvity's end-to-end workflow is used for researching genetic variations in newborns. It utilizes both Element Biosciences and Illumina (NASDAQ:ILMN) systems for sequencing and includes a hybridization-based NGS panel that targets over 390 genes relevant to newborn research. The addition of VIA software is expected to further the efficacy of the workflow by providing cloud-based data analysis and management.
Erik Holmlin, PhD, president and CEO of Bionano, expressed enthusiasm about the partnership, stating that the company is dedicated to transforming genomic analysis and that VIA software is widely used for NGS applications. He also highlighted the software's utility in optical genome mapping visualization, interpretation, and reporting.
Bionano's mission is to revolutionize how genomes are understood through its optical genome mapping (OGM) solutions, diagnostic services, and software. The company also offers OGM-based diagnostic testing services through its Lineagen, Inc. business.
It is important to note that Bionano's products are intended for research use and not for diagnostic procedures, except as specifically stated. Moreover, this press release contains forward-looking statements that involve risks and uncertainties. The success of the partnership and the utility of VIA software in Revvity's workflow are subject to these risks.
The information reported is based on a press release statement from Bionano Genomics, Inc.
In other recent news, Bionano Genomics has been the subject of significant financial and scientific developments. The company reported a first-quarter revenue increase to $8.8 million, marking an 18% year-over-year growth, and confirmed its revenue forecast for the full year 2024.
In an effort to streamline operations, Bionano Genomics is implementing a broader restructuring strategy, eliminating an estimated $65-75 million in annualized operating expenses.
The company's optical genome mapping (OGM) systems installed base expanded by 34% to 347 systems, and flowcell sales saw a substantial 58% year-over-year increase. Bionano Genomics also reported a surge in scientific engagement, with a record 97 publications in the first quarter, indicating growing interest from the scientific community in the company's technology.
BTIG recently adjusted its outlook on Bionano Genomics, reducing the price target to $2.00 from the previous $3.00, while maintaining a Buy rating. This follows the completion of a modest registered direct offering by Bionano Genomics in April, securing an additional $10 million to bolster its balance sheet. These are among the recent developments for the company, reflecting its proactive approach to improving financial stability and expanding its technology.
InvestingPro Insights
In the context of Bionano Genomics' new partnership with Revvity, it's essential for investors to consider the company's financial health and stock performance. According to InvestingPro data, Bionano Genomics has a market capitalization of $53.57 million and has experienced significant revenue growth of 26.93% over the last twelve months as of Q1 2024. Despite this growth, the company's operating income margin remains deeply negative at -344.42%, indicating substantial losses relative to its revenue.
InvestingPro Tips suggest that Bionano Genomics is quickly burning through cash and analysts do not expect the company to be profitable this year. Additionally, the stock has experienced considerable volatility with a one-year price total return of -88.53% as of the same period, reflecting a sharp decline in investor confidence. These factors underscore the importance of closely monitoring Bionano's financial metrics and market sentiment, especially in light of its new software marketing initiative.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available on InvestingPro's Bionano Genomics page. These insights can help investors make more informed decisions regarding Bionano's stock, particularly in the volatile biotech sector. To access these valuable insights, consider using the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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