SAN DIEGO - Bionano Genomics, Inc. (NASDAQ:BNGO) has revealed study results indicating that its optical genome mapping (OGM) technology surpasses traditional cytogenetic methods in identifying gene rearrangements in multiple myeloma (MM). The research, published in Blood Cancer Journal by South Korean scientists, suggests OGM's potential for broader application in blood cancer diagnostics.
Multiple myeloma, a hematologic cancer, is marked by genetic abnormalities, including MYC gene rearrangements. The study showed that OGM detected MYC-positive cases in 40% of instances compared to 26% for fluorescence in-situ hybridization (FISH) and 13% for karyotyping. Karyotyping's limitations in identifying MYC rearrangements and translocation partners, crucial for disease stratification and management, were highlighted.
OGM also complements other molecular techniques by uncovering large structural variations that may be missed by next-generation sequencing (NGS). This comprehensive genomic view could enhance precision medicine for MM by providing a more complete understanding of the disease's drivers.
The study emphasized OGM's streamlined workflow and cost-efficiency over traditional cytogenetics, which can be labor-intensive and time-consuming. OGM offers a single assay solution as opposed to the multiple rounds of analysis often required in cytogenetics, potentially reducing the time for accurate blood cancer classification and stratification.
Erik Holmlin, CEO of Bionano, commented on the significance of the findings for improving MM identification and understanding. He believes this research represents a crucial step toward demonstrating OGM's utility across a wider range of blood cancers, which may increase its adoption and utilization as an alternative to traditional methods.
Bionano Genomics provides genome analysis solutions aimed at transforming genomic understanding through OGM solutions, diagnostic services, and software. The company's mission is to enable researchers and clinicians to uncover answers to complex biological and medical questions.
This news is based on a press release statement and underscores OGM's potential in advancing blood cancer diagnostics, although the company's products are currently for research use only and not for diagnostic procedures.
In other recent news, Bionano Genomics has reported a decrease in its Q3 revenue and cash reserves, with anticipated revenue falling between $6.5 to $6.8 million, a drop from the previously guided range of $7.9 to $8.9 million. The company also reported that its total cash reserves stood at approximately $23.3 million. These are recent developments and are yet to be finalized. In addition, Bionano Genomics announced a 10% year-over-year decline in Q2 2024 revenue, falling to $7.8 million due to a significant drop in flowcell sales, particularly in China. The company also plans to reduce its workforce by 45% to decrease its annual cash outflow by $25-30 million. BTIG has downgraded Bionano Genomics from Buy to Neutral, reflecting concerns over the current difficult environment for raising capital. Despite these challenges, Bionano Genomics reported growth in its Optical Genome Mapping (OGM) installed base and the acceptance of a Category 1 Current Procedural Terminology (CPT) code by the American Medical Association. The company is also implementing cost-saving measures, aiming to reduce annualized non-GAAP expenses by $65-75 million by Q1 2025.
InvestingPro Insights
While Bionano Genomics (NASDAQ:BNGO) is making strides in advancing its optical genome mapping technology, the company's financial health presents a complex picture. According to InvestingPro data, Bionano's market capitalization stands at a modest $24.97 million, reflecting the market's current valuation of the company's potential.
Despite the promising research results, InvestingPro Tips highlight some financial challenges. The company is "quickly burning through cash," which could be a concern for investors considering the capital-intensive nature of biotechnology research. This cash burn rate is particularly relevant given the company's focus on developing and commercializing its OGM technology.
Another InvestingPro Tip notes that analysts do not anticipate the company will be profitable this year. This aligns with the reported operating income of -$104.64 million for the last twelve months as of Q2 2023, indicating significant ongoing investment in research and development.
However, it's not all negative. The company has shown revenue growth of 16.08% over the last twelve months, suggesting there is market interest in its technologies. Additionally, with the stock trading near its 52-week low and an RSI suggesting it's in oversold territory, some investors might see a potential opportunity.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips that could provide further insights into Bionano Genomics' financial situation and market position.
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