This Day That Year: 10x Genomics Inc. (TXG)

Shares of 10x Genomics Inc. (TXG), which closed at an all-time high of $125 on Friday, have gained 64 percent so far this year.

It was on this day last year, i.e. on September 12, 2019, that the company made its debut on the Nasdaq Global Select Market by setting a public offering at $39 per share.

10x Genomics is a life science technology company developing single-cell solution and spatial gene expression lab hardware and software for analyzing biological systems. The single-cell solutions run on the Chromium instruments and the spatial gene expression solution is based on the Visium platform.

While single-cell analysis gives researchers the ability to see what is inside a cell, the Visium platform for spatial molecular profiling lets researchers see how cells are organized in relation to one another, allowing for a deeper understanding of biological systems in both normal and disease states.

The company’s customers primarily include academic, government, biopharmaceutical, biotechnology, and other institutions, spread across over 40 countries. Since launching its first product in mid-2015 through December 31, 2019, 10x Genomics is said to have sold 1,666 instruments to researchers around the world, including 97 of the top 100 global research institutions and 19 of the top 20 global biopharmaceutical companies.

With increasing penetration in its existing markets and expanding suite of products, the company has been able to improve its revenue as well as gross profit over the years as can be seen in the table below.

Metrics201720182019
Revenue$71Mln$146 Mln$245.9 Mln
Gross Profit$60.5 Mln$117.7 Mln$184.9 Mln
Net Loss$18.7 Mln$112.5 Mln$31.3 Mln
Loss/Share$1.62$8.40$0.80

In the second quarter ended June 30, 2020, the results of which were reported last month, revenue was $42.9 million compared to $55 million in the year-ago quarter. The 23% drop in revenue was due to the widespread customer lab closures related to the COVID-19 pandemic.

Net loss was $40.2 million or $0.41 per share for the second quarter of 2020 compared to a net loss of $10.9 million or $0.70 per share for the corresponding prior-year period.

Litigation

10x Genomics is involved in a series of patent lawsuits with Bio-Rad Laboratories Inc.(BIO). A Markman Hearing related to one of the patent infringement suits is expected this month. A trial date for Bio-Rad’s patent claims and 10x Genomics’ patent counterclaims falls in April 2021 and a trial date for 10x Genomics’ antitrust counterclaims is set for July 2021.

Cash Position

10x Genomics had cash and cash equivalents of $339.8 million as of June 30, 2020.

On September 10, the company offered to sell 4 million shares of its Class A common stock to the public at a price of $110.00 per share. The underwriters have the right to purchase up to an additional 600,000 shares of Class A common stock.

The offering is expected to close on September 15, 2020, subject to customary closing conditions.

TXG has traded in a range of $45.11 to $125.30 in the last 1 year. The stock closed Friday’s trading at $125, up 10.12%.

Source: Read Full Article