BNGO Stock: BioNano Genomics Flies On Publication

BioNano Genomics Inc (NASDAQ: BNGO) is running for the top in the market this morning, and for good reason. The company announced the publication of a study on autism risk genes. Here’s what’s going on:

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BioNano Genomics Rockets On Study Publication 

As mentioned above, BioNano Genomics is having a strong start to the trading session in the premarket hours this morning, and for good reason. The company announced the publication of an analysis of Professor Temple Grandin’s genome in one of the most comprehensive evaluations of a single genome of a high functioning individual with Autism Spectrum Disorder. 

BNGO went on to explain that through the use of the Lineagen’s suite of genetic tests customized for individuals with ASD and other disorders of childhood development, and whole genome sequencing, the study identified novel variants in known Autism risk genes and other genetic variants important to her health and wellness. 

The company said that despite Dr. Grandin’s high level of functioning and acute awareness of how her Autism manifests, these findings have led to improved clinical management of many of her symptoms. 

BNGO said that Dr. Grandin was diagnosed with autism spectrum disorder during childhood and was non-verbal until the age of three. She avoided physical touch and had difficulties with social interaction. Nonetheless, she overcame these challenges to become a world-renowned PhD scientist and author. Moreover, she was named one of the top 10 college professors by CEOWORLD Magazine. 

Management Commentary

In a statement, Dr. Grandin had the following to offer:

When I originally requested to have genetic testing, I had no idea that the test I was getting for autism information would provide me with valuable information for other health problems. It is clearly beneficial for individuals to undergo genetic testing. Those with autism, like myself, may learn important information to guide medical decisions that may possibly save their lives while also potentially finding a genetic link to autism. Testing for people with autism was not commonplace in my youth or early adulthood, which is too bad, because this practice will push the medical community’s understanding of autism and health risks forward.

The above statement was followed up by Erik Holmin, PhD, CEO at BioNano Genomics. Here’s what he had to offer:

This publication shows the importance of genetic testing for ASD and neurodevelopmental disorders. ASD is typically diagnosed based on a child’s behavior, and only 3% of children with an ASD diagnosis get clinical genetic testing, which is recommended by a number of professional medical organizations including the American College of Medical Genetics and Genomics and the American Academy of Pediatrics. Widespread adoption of genetic testing is important to patients and families because it creates a better understanding of ASD, but more importantly, informs families and patients about immediate health risks associated with ASD that could personalize treatment options and provide potentially life-saving information.

We are grateful to Dr. Grandin for her willingness to participate in this study. Now that Lineagen has become a part of Bionano Genomics, we are expanding this study in a next phase to include a full analysis of her genome using optical genome mapping (OGM) with Saphyr. The wide spectrum of genetic variation between individuals with ASD makes it difficult for traditional tests to provide a diagnosis of the genetic condition. We expect OGM with Saphyr to reveal a more complete picture of genomic variants that provides actionable information that can potentially improve outcomes.

Analyst Opinions of BNGO Stock

According to TipRanks, there are currently three analysts that cover BNGO stock, and opinions are very strong. Of the three analysts covering the stock, two rate it a buy while one rates it a hold. 

Nonetheless, it’s important to keep in mind that you should never blindly follow the opinions of any expert, myself, analysts, or even Warren Buffet. Nonetheless, it is a good idea to use these opinions as a source of validation for your own.  

Risks to Consider Before Buying BNGO Stock 

If you’re going to invest, you’re going to accept risk. That’s no different with BioNano Genomics. Before buying in, here are the most significant risks to consider with regard to BNGO stock:

  • Penny Stock Risks. BNGO is a penny stock. As a penny stock, it is riddled with volatility. Moreover, the company’s business model is not yet proven and increased risk should be considered. 
  • Clinical Risks. As a clinical-stage biotechnology company, BioNano Genomics is at the mercy of clinical data. Should a clinical trial fail to produce the results investors expected to see, the stock could be headed for significant declines. 
  • Capital Risks. Finally, as a clinical-stage biotechnology company, BNGO doesn’t make money through the sale of its products as it hasn’t received regulatory approval for commercialization. Therefore, it must rely on the money it has in the bank. If that’s not enough to bring it to commercialization, dilution may be the result. 

Final Thoughts

While any investment comes with risk, an investment in BioNano Genomics at the moment is worth consideration. At the end of the day, the company is working to solve one of the most pressing and prevalent problems in children’s medicine today, autism spectrum disorder. 

While the disorder is very difficult to treat, data from this study will ultimately help BNGO find solutions for this vast patient population, making the stock one that’s hard to ignore.