Narrowing losses and a fatter gross margin sent the DNA-sequencing group's shares sharply higher, with management reiterating a path to breakeven in 2027.
Oxford Nanopore Technologies (LSE: ONT) saw its shares climb 6% to 130p on Wednesday after the DNA-sequencing specialist reported first-half revenue of £116.7m, up 12.3% at constant currency, alongside a sharp narrowing in its underlying losses.
The rally was driven by the scale of the improvement in profitability: adjusted EBITDA loss shrank to £22.1m from £48.3m a year earlier, while the total loss for the period fell to £48.0m from £71.8m, as gross margin widened four percentage points to 62.2%.
Growth was led by the clinical and biopharma end-markets, which rose 35% and 25% respectively, with strong demand from Europe and the Americas offsetting a near-16% decline in Chinese sales. The PromethION range remained the company's principal revenue driver, and chief executive Francis Van Parys pointed to progress in product development and readiness for regulated markets.
After the half-year close, Oxford Nanopore struck a cross-licensing agreement with a global diagnostics company worth a $20m fee this year plus further product purchases and royalties, adding to evidence that the business, under new leadership, is broadening its commercial base.
Cash and liquid investments fell to £234.5m from £302.8m at the year-end, reflecting operating outflows and seasonal working-capital effects including prior-year bonus payments, though the company expects cash generation to improve in the second half. Management reiterated targets of adjusted EBITDA breakeven in FY27, positive free cash flow in FY28, and revenue exceeding $700m by 2030 on the way to a longer-term $1bn ambition.
This report is based on Oxford Nanopore Technologies’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Julia Koblitz on Unsplash.
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