Shares in Oxford Nanopore Technologies jumped 8.9 per cent today after the British gene sequencing innovator reported robust revenue growth and reaffirmed its path to profitability. The FTSE 250 company saw its shares close at 142¾p, valuing the enterprise at approximately £1.4 billion.
The company’s trading update revealed full-year revenue of £183 million, marking an 11 per cent increase year-on-year, aligning with previous guidance. The underlying growth stood at an impressive 23 per cent when excluding £16 million in reduced COVID-19 sequencing sales and an Emirati genome programme.
Gordon Sanghera, co-founder and chief executive, expressed satisfaction with the 2024 performance, particularly noting the challenging market conditions faced by the broader sector. The company’s strong balance sheet, boasting £403 million in cash and liquid investments, positions it favourably for sustained growth.
The Oxford-based enterprise, which specialises in DNA and RNA sequencing technology, has maintained its commitment to reaching break-even on an adjusted earnings basis by 2027, with positive cash flow expected in 2028. This timeline represents a one-year delay from previous projections, attributed to post-pandemic funding constraints in research markets.
Recent developments include a strategic partnership with NHS England, establishing an early-warning system for emerging pathogens across Britain. The company experienced growth across all regions, though Chinese market expansion was somewhat tempered by export control restrictions.
Market analysts remain cautiously optimistic, with Stifel upgrading the stock to “hold” from “sell,” while acknowledging potential headwinds from established competitors like Illumina and current market conditions. Peel Hunt analysts noted improved capital discipline following recent leadership appointments, including Duncan Tatton-Brown as chairman and Nick Keher as chief financial officer.
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