Markets

Biotech start-up 10x Genomics surges in IPO debut

Key Points
  • 10x Genomics traded as much as 49% up on its IPO debut.
  • The company provides scientists gene sequencing technologies to help cure chronic diseases like cancer and Alzheimer's.
  • CEO and co-founder Serge Saxonov said the large demand for the company's products insulates it from swings in NIH funding.
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10x Genomics CEO Serge Saxonov on company's first trade

Biotech start-up 10x Genomics surged as much as 49% in its market debut Thursday. The stock opened trading at $54 and rose as high as $58 per share midday before closing at $53. 

The company, which provides scientists gene sequencing technologies to help cure chronic diseases like cancer and Alzheimer's, priced its 9 million shares Wednesday night at $39 per share, above the expected range of $31 and $35.

The stock is among the top 25 IPO debut performances year to date.

10x Genomics is backed by investors like Softbank, Fidelity and Meritech Capital partners, among others.

CEO and co-founder of Serge Saxonov told CNBC's "Squawk Alley" Thursday that demand for the company's services insulates 10x Genomics from typically unpredictable swings in public medical funding.

While other comparable genome sequencing companies like Illumina have taken a hit in recent months due to weakness in the direct-to-consumer market, Saxonov told CNBC's Morgan Brennan and Jon Fortt that those trends don't impact his long-term outlook for gene sequencing technology.

"Illumina had a little bump in the road perhaps, but the ultimate future is really, really promising and really big. When I look at the long term, which tends to be my outlook, I have no concerns at all," said Saxonov, who previously served as the director of research and development at 23andMe.

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Key Points
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  • The IPO values SmileDirectClub at $8.9 billion. 
  • SmileDirectClub plans to start trading Thursday on the Nasdaq.