Oguzhan Atay, a Turkish immigrant who earned his Ph.D. in systems biology from Stanford University, is now celebrating a remarkable success story. His company, BillionToOne, soared into the public eye with its Nasdaq IPO on September 14th, raising $273 million and achieving an impressive market cap of $5.8 billion by day’s end — a rare feat for medical diagnostics companies in the current economic climate, especially given the ongoing federal government shutdown.
BillionToOne wasn’t built overnight. Founded in 2016 with a vision to revolutionize prenatal genetic testing, Atay and his co-founder David Tsao focused on using minimally invasive blood tests to screen for common diseases like sickle cell anemia and cystic fibrosis – far less intrusive than traditional amniocentesis procedures. This innovative approach quickly gained traction, allowing the Menlo Park, California-based company to expand into cancer testing as well.
The initial focus on prenatal testing proved immensely successful. In just one year, BillionToOne witnessed a staggering 19-fold increase in revenue from $8 million in 2021 to $153 million in 2022. This upward trajectory continued, reaching $209 million in the last twelve months alone. While the company still operates at a loss (a relatively small $4 million for the first half of 2023), that figure is shrinking significantly.
This explosive growth highlights a clear market demand:
- Market Opportunity: BillionToOne projects the market for their existing genetic tests exceeds $20 billion, with potential to grow to an astounding $100 billion as they expand into new diagnostic areas like cancer.
- Early Detection: Atay emphasizes that early detection of cancer is “where a lot of the excitement for our company lies.” This focus on potentially saving lives before symptoms appear taps into a rapidly evolving and crucial area within healthcare.
This success didn’t come without its challenges, particularly in establishing credibility and navigating complex insurance networks. Early on, BillionToOne faced an uphill battle competing against well-established industry giants.
“In the beginning it was very difficult,” Atay recalled. “We were outspent and outnumbered in every region we were in.” To secure patients during the pandemic, he took innovative steps like meeting doctors in their parking lots, going above and beyond to build relationships and trust. Today, 70% of insurers now cover BillionToOne’s services, a testament to their persistence and dedication to customer acquisition.
“He’s humble, but he’s a beast,” describes Shahram Seyedin-Noor, managing partner at Civilization Ventures – one of BillionToOne’s earliest investors – highlighting Atay’s tenacity and leadership. This IPO marks the culmination of years of hard work, innovation, and strategic maneuvering by both Atay and Tsao who, along with their team, have built a formidable force in the diagnostics market. As BillionToOne continues to expand its portfolio into early cancer detection, Atay’s vision for transforming healthcare through accessible and accurate testing seems poised to reach even greater heights.
