What happened
Actions of Bionano Genomics (NASDAQ: BNGO) rose 8.4% during market hours on Tuesday, only to fall about 10% after the market closed.
And
Investors raised the price of Bionano’s stock after biotechnology said on Monday that its Saphyr optical genome mapping system (GMO) could detect structural variants that could make people more likely to acquire severe forms of COVID-19.
Investors were probably also pleased when the results of a study released on Tuesday showed that Saphyr can detect all clinically important variants of cancer genomes in people with myelodysplastic syndromes (MDS), precursors to acute myeloid leukemia (AML). Notably, Saphyr could do this in a single trial – instead of the multiple tests required by current methods – and thus potentially help patients receive care faster.
Bionano Genomics’ shares reversed the course on Tuesday. Image source: Getty Images.
However, Bionano’s share price fell approximately 10% in after-hours trading after the company announced a public offering of shares. Bionano did not reveal the number of shares it intends to sell.
What now
Bionano previously completed a share sale of about $ 100 million on January 12. The company’s decision to sell more shares so soon may mean that management believes that in the past few weeks the price of Bionano’s shares may have gone up very, very fast.