DNA Test Maker BillionToOne Raises $314M in Upsized IPO, Shares Experience Volatility

BillionToOne, a molecular diagnostics firm specializing in DNA testing, has successfully completed its initial public offering (IPO), raising $314 million in an upsized offering. The Menlo Park, California-based company made its debut on the Nasdaq exchange on Friday, offering more than 5.2 million shares of Class A stock at $60 per share.

IPO Performance and Market Reaction

The company's shares, trading under the ticker "BLLN," experienced significant volatility on their first day of trading. After reaching a high of $113.06, the stock price dropped more than 8% to close at $100.03. This fluctuation highlights the market's mixed reaction to BillionToOne's public debut.

J.P. Morgan, Piper Sandler, Jefferies, and William Blair acted as joint book-running managers for the offering, with Stifel, Wells Fargo Securities, and BTIG also participating in the underwriting process.

Funding Allocation and Company Focus

BillionToOne plans to use the funds raised from the IPO to scale up its DNA testing businesses, with a particular focus on noninvasive prenatal screening and cancer diagnostics. The company's technology differentiates itself by concentrating on smaller genetic alterations and their impact, in contrast to traditional prenatal screening tests that typically examine larger chromosomal changes.

Flagship Product and Recent Achievements

The company's flagship product, the UNITY Fetal Risk Screen test, analyzes blood samples for cell-free DNA fragments. This innovative approach enables the assessment of risks for recessively inherited conditions such as spinal muscular atrophy and cystic fibrosis without requiring invasive procedures like amniocentesis or blood samples from male partners.

BillionToOne has reported significant progress in its prenatal screening efforts. Earlier this year, the company announced that its screening test for Rh incompatibility in pregnant patients had delivered over 80,000 results. This achievement has led to more efficient use of RhoGAM shots, which have been facing supply shortages.