Oxford Nanopore shares soar on robust first half sales growth

Shares in Oxford Nanopore surged as the FTSE 250 gene-sequencing specialist reported stronger than expected sales for the first half of 2025. The company expects to post revenues of around £105 million for the six months to the end of June, marking a 28 per cent increase at constant currencies and surpassing City predictions.

This performance has delivered a welcome boost to investors after a subdued outlook earlier in the year. In March, the company issued a lower annual revenue growth forecast and warned about uncertainty stemming from tightening US research budgets and stricter Chinese export controls. The recent update sent Oxford Nanopore shares up 15.7 per cent to 169.5p, their highest level since early 2024 and extending gains for the year to approximately a third.

Oxford Nanopore, which was spun out from Oxford University two decades ago, has developed devices to sequence DNA and RNA, most notably portable solutions serving a global market estimated at $6 billion. Most of the company’s customers are in the research sector, but its technology is gaining ground in industrial, clinical and pharmaceutical settings. Noteworthy partners include the NHS.

Its largest shareholder is EIT Oxford Holdings, a California-based vehicle of Oracle founder Larry Ellison, which has swiftly built a 16.2 per cent stake since entering the scene last August. The company’s platform operates by tracking electrical changes as nucleic acids pass through protein nanopores, providing accurate genetic sequencing data in real time.

Growth was evident across all end-markets and regions, including a 17 per cent rise in revenues from the Americas despite ongoing US government research funding cuts. Gross margins were said to be marginally below last year’s figure, impacted by a one-off inventory charge and adverse currency movements.

The group reported ongoing progress towards profitability, with a sequential and year-on-year reduction in adjusted EBITDA loss, driven by careful cost management and improved gross profits. Oxford Nanopore retained its guidance for this year, aiming for revenue growth between 20 and 23 per cent. The company remains on track for adjusted earnings break-even in 2027 and anticipates becoming cash flow positive by 2028.

Analysts have identified the second half of 2025 as critical for testing Oxford Nanopore’s trajectory, with the business facing increased competition and constrained research funding in key markets. The company continues to balance the need to control costs against maintaining momentum in growth and innovation. Half-year results are expected to be published in September.