10x Genomics Closes in on IPO

By Chris Lange Updated Jan 6, 2:29AM EST · Published Sep 14, 11:41AM EDT

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10x Genomics Closes in on IPO — © designer491 / iStock

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10x Genomics has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company intends to price its 9.0 million shares in the range of $36 to $38 apiece, with an overallotment option for an additional 1.35 million shares. At the maximum price, the entire offering is valued up to $393.3 million. The company intends to list its shares on the Nasdaq under the symbol TXG.

The underwriters for the offering are JPMorgan, Goldman Sachs, Merrill Lynch and Cowen.

This is a life science technology company building products to interrogate, understand and master biology. Its integrated solutions include instruments, consumables and software for analyzing biological systems at a resolution and scale that matches the complexity of biology. The firm has built deep expertise across diverse disciplines including chemistry, biology, hardware and software.

The firm’s products have enabled researchers to make fundamental discoveries across multiple areas of biology, including oncology, immunology and neuroscience, and have helped empower the single cell revolution hailed by Science magazine as the 2018 “Breakthrough of the Year.”

Since launching its first product in mid-2015 through the end of June, 10x Genomics has sold 1,284 instruments to researchers around the world, including 93 of the top 100 global research institutions by publications and 13 of the top 15 global pharmaceutical companies by 2018 revenue.

Management believes that this represents the very beginning of the firm’s penetration into multiple large markets. It expects that 10x Genomics will power a “Century of Biology,” in which many of humanity’s most pressing health challenges will be solved by precision diagnostics, targeted therapies and cures to currently intractable diseases.

In the filing, 10x Genomics detailed its finances as follows:

Our revenue was $71.1 million and $146.3 million for 2017 and 2018, respectively, representing an annual growth rate of 106%, and $59.2 million and $109.4 million for the six months ended June 30, 2018 and 2019, respectively, representing an annual growth rate of 85%. We generated net losses of $18.8 million and $112.5 million for 2017 and 2018. Our 2018 net loss resulted substantially from charges of $62.4 million associated with intellectual property acquisitions for research and development in addition to the litigation contingency.

The company intends to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.