10x Genomics Files for $100 Million IPO to Fund Operations and Expansion

On August 20, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that DNA sequencing technology developer 10X Genomics announced plans to raise $100 million through an initial public offering (IPO). The net proceeds from the IPO will be used for general corporate purposes, and 10X Genomics stated that it may use a portion of the funds to acquire businesses, products, or technologies.

JPMorgan, Goldman Sachs, and Bank of America will jointly serve as book-running managers. 10X Genomics has not disclosed the expected price range, but a filing indicates that the company plans to list on the Nasdaq under the ticker symbol “TXG.”

Reportedly, 10X Genomics completed a $4.7 million seed financing round in November 2012; a $22.4 million Series A financing round in November 2013; a $55.5 million Series B financing round in December 2014; a $75 million Series C financing round in February 2016; a $50 million Series D financing round in April 2018; and a $35 million additional Series D financing round in January 2019.

Over the two-year period from 2015 to 2017, the company’s revenue grew twentyfold. 10X Genomics plans to continue its expansion and become one of the largest genetic testing companies in the world.

According to data released at the 37th Annual J.P. Morgan Healthcare Conference, 10x Genomics reported annual revenues of $71 million in 2017 and $146 million in 2018, representing more than a doubling of its total revenue. Currently, 10x Genomics has a market capitalization of $42 billion, which is projected to grow to $53 billion by 2022.

10x Genomics primarily offers two technologies: Linked-Reads, which can sequence short DNA fragments, and scRNA-Seq, which performs RNA sequencing at the single-cell level.

Linked-Reads technology enables the acquisition of extensive genomic information through short-read sequencing. By partitioning and barcoding high-molecular-weight (HMW) DNA, it generates novel data structures that allow for the reconstruction of complete genomic information from these short reads. This innovative technique can be applied to various diagnostic processes. For instance, in pathological research on genetic disorders, certain mutant gene sequences associated with these conditions are only amenable to short-read sequencing, such as those located in NGS blind spots. Linked-Reads technology can detect these elusive genomic regions, enabling researchers to experimentally analyze previously undetectable areas and meeting the urgent demand in biological research for precise cellular information.

In addition to its applications in the field of genetic disorders, Linked-Reads can also be applied in three areas: cancer research, agricultural and environmental genomics, and human genomic variation. By leveraging Linked-Reads technology, complete genomic information can be reconstructed, enabling precise and intuitive identification of the genetic root causes of diseases.

10x Genomics’ second technology, single-cell RNA sequencing (scRNA-Seq), enables analysis of RNA across entire cell populations and measures the average target values for the majority of cells. By profiling transcription at the single-cell level, scRNA-Seq captures heterogeneity within samples. Heterogeneity is observed in various cell types, including immune T cells and diseased tumor cells, all of which are amenable to single-cell RNA sequencing. This approach to single-cell transcriptomic analysis ensures experimental accuracy.

10x Genomics has developed the Chromium system, a reagent delivery platform, using its proprietary technology. This system enables partitioned sequencing of DNA molecules longer than 100 kb, assigning all fragments derived from the same partition to a unique barcode, thereby establishing a one-to-one correspondence between partitions and barcodes. It can generate over 100,000 distinct barcodes within minutes. The genetic information of the original long DNA molecules can be reconstructed from the short-read data associated with these barcodes.

10x Genomics is a leader in the field of genetic testing. Founded in 2012 and headquartered in California, United States, the company maintains offices in more than ten countries, including the United Kingdom, France, and Switzerland. With its revolutionary DNA sequencing technology, 10x Genomics enables the identification of genomic information that was previously difficult to access, thereby accelerating the advancement of biological and genetic sciences.

(Compiled by Cheng Tao)