10X Genomics Enters the Market With a Bang

Health and Healthcare

Published: September 12, 2019 12:00 pm

Last Updated: January 6, 2020 2:33 am

10X Genomics Inc. (NASDAQ: TXG) shares entered the market with a bang on Thursday. Its initial public offering went off at $54, well above the anticipated price of $39. The company originally expected to price its 10.0 million shares in the range of $36 to $38, with an overallotment option for an additional 1.5 million shares. The entire offering is valued up to $448.5 million.

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

This life science technology company builds 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.”

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.

Shares of 10X Genomics were last seen up about 42% at $55.22, in a range of $52.00 to $58.00 on the day thus far. Just over 4 million shares have moved as of 11:45 a.m. Eastern.