Lung cancer tester Biodesix makes preliminary IPO filing

BOULDER — Lung-cancer genetics tester Biodesix Inc. has filed a preliminary prospectus for an initial public offering.

In filings with the U.S. Securities and Exchange Commission Friday afternoon, the Boulder company said it plans to go public in the Nasdaq Global Market under the symbol “BDSX.”

The filing is preliminary and lacks key information such as the amount of money it is looking to raise, the target range for its stock price at debut and the timing of those stocks hitting the open market.

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Biodesix creates tests that analyze lung-cancer samples to determine if specific genes have mutated to cause the malignant tumors, in turn offering specific strategies for doctors and patients.

It has spent much of this year pivoting to creating and processing COVID-19 tests, including for Major League Lacrosse’s shortened season and as an expanded capacity lab for Colorado State University.

In the filings, Biodesix said it expects that it can capture part of the $27 billion annual market for lung-cancer continuum-of-care in the U.S.

The company revealed that it had $24.55 million in sales at the end of 2019, compared with $20.43 million the year before. However, its net losses increased from $26.16 million in 2018 to $30.72 million last year.

In the first half of 2020, Biodesix brought in $9.33 million in revenue, but posted net losses of $17.97 million. It has $11.67 million in cash and equivalents on hand.

ArcherDX Inc., another Boulder company in the genetic assay industry, filed for a $100 million IPO in June before accepting a $1.4 billion acquisition offer from Invitae Inc. (NYSE: NVTA) weeks later.

Biodesix said it may face initial risks due to the ongoing COVID-19 pandemic because cancer patients may be limited in the doctors and providers they have access to, and it has received fewer lung-cancer samples than usual when the crisis hit en masse in late March.

However, biotechnology stocks have been some of the strongest performers in the IPO market this year, specifically because demand for treatments in cancer and other chronic and deadly diseases hasn’t been cancelled by the pandemic.

A Biodesix spokesperson declined to comment Friday. Companies are generally prohibited from most public communications between filing a public offering prospectus and shortly after it goes public.

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