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Keep on Buying Bionano Stock, Says Analyst Following Healthcare Conference
Bionano ( BNGO ) is a name that few knew about a year ago. However, the life sciences company’s profile – and share price – has increased significantly in recent months, as interest has grown around its genome imaging system, Saphyr, and how it can shape the world of cytogenetics.
Following Bionano’s presentation at Oppenheimer’s Annual Healthcare Conference, firm analyst Kevin DeGeeter talked with management to learn what’s in-store for the company.
The discussion turned to the subject of reimbursements.
“Given complex payor infrastructure in the US,” DeGeeter said, “Management has identified three pathways to reimbursement: 1) applying for Z-Codes for which the mechanism applies (region-specific); 2) applying for Proprietary Lab Analyses codes (PLAs), which take the place of Z-Codes appended to CPT (current procedural terminology) codes; and/or 3) labs with existing payor contracts to provide evidence of technical validation.”
Notable progress on the development of LDTs (laboratory developed tests) and reimbursement is expected over the next year to year and a half, according to management.
Clinical utility has already been established for the chosen indications and particular tests that Bionano hopes to replace with Saphyr-based LDTs. In the majority of cases, technical validation is “the limiting step,” and according to DeGeeter, remains the […]