Bionano Genomics (NASDAQ:BNGO) continues to take steps that will, in the long-term, tremendously boost its results and the share price. Consequently, I remain very bullish on BNGO stock.

More specifically, the sales of Bionano’s Saphyr DNA mapping system are still accelerating, while a recent acquisition by the company should make the product much more useful and valuable.

Also very importantly, Bionano continues to make progress toward proving Saphyr’s ability to detect diseases early, thereby saving many lives. That proof, in turn, will enable the users of Saphyr to be reimbursed by the government for their purchases and use of the system. As a result, the genome analysis company will be able to meaningfully increase its prices.

 Sales Acceleration and a Potent Acquisition

In the third quarter, Bionano more than doubled shipments, 24 versus 11 during the year-earlier period, and 13 in the first quarter, CEO Erik Homlin told participants on the Q3 earnings conference call on Nov. 4.

What’s more, the company sold a quarterly record 3,969 nanochannel array flow cells, a 122% jump over the same period a year earlier. A flow cell is used each time a human genome is analyzed by Saphyr.

Meanwhile, Bionano announced it will buy BioDiscovery, whose platform allows the structural variants of DNA to be analyzed more easily and more quickly, Chief Business Officer Rich Shippy said.

The $100 million cash and stock deal also will enable Bionano to directly target “the discovery and translational research markets,” Shippy explained. Finally, BioDiscovery’s software will allow Bionano to integrate Saphyr’s optical DNA mapping capabilities with next-generation sequencing and genetic analysis capabilities, the CEO stated.

I believe that the acquisition will make Saphyr more attractive by significantly simplifying the use of the system for researchers and medical professionals. Perhaps more importantly for BNGO stock, my analysis shows that the inclusion of BioDiscovery’s software will enable Bionano to charge much more for the use of Saphyr.

That’s because, in developed countries, professionals have become very used to paying significant, recurring subscription fees for software. For example, it’s not unusual for businesses to charge a company $25 per user, per month for software. By charging such subscription fees for the combination of Saphyr and BioDiscovery, Bionano should be able to exponentially increase its revenue.

And finally, as Bionano’s chief business officer, indicated, the company should benefit meaningfully from being able to pitch Saphyr to BioDiscovery’s current users and from marketing BioDiscovery’s software to Saphyr’s current users.

Getting Closer to Reimbursement

In a study of facioscapulohumeral muscular dystrophy (FSHD), an otherwise rare muscle disease, Saphyr showed that it was able to generate “data more quickly, accurately and more reproducibly than the current gold standard method of Southern blot,” Homlin reported. And in an ongoing, postnatal study, Saphy demonstrated “100% concordance” with standard testing tools,” he stated. He noted that it also identified what he described as “valuable information” that will enable researchers to correctly diagnose more patients.

Bionano is also making progress in its trials of Saphyr for the analysis of blood cancers and prenatal diseases.

” We believe data to be generated as part of these studies will serve as a basis to support changes in guidelines set by medical societies that will ultimately recommend uses of optical genome mapping as part of the standard of care,” Homlin stated.

In other words, these studies will probably yield positive results, causing insurers and governments to reimburse hospitals and researchers for the use of Saphyr. That, in turn, will enable Bionano to charge much higher prices for Saphyr, greatly lifting the price of BNGO stock.

The Bottom Line on BNGO Stock

Bionano’s acquisition makes Saphyr much more attractive and should enable the company to meaningfully raise its top and bottom lines. The $100 million price tag should pay off for BNGO stock holders.

Meanwhile, the company continues to make significant progress on studies that should result in the use of Saphyr being reimbursed by governments and insurers. Such a development, more than likely, would enable Bionano to charge much more for its products, causing BNGO stock to surge.

Given these points and the relatively low $149 billion market capitalization on the shares, I continue to recommend that long-term investors buy the stock.

On the date of publication, Larry Ramer held a long position in BNGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 14 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.