4th Mar 2025 11:00
(Alliance News) - Oxford Nanopore Technologies PLC on Tuesday reaffirmed its financial targets, projecting adjusted earnings before interest, tax, depreciation, and amortisation breakeven by 2027 and cash flow positivity by 2028, as it continues scaling its nanopore-based sequencing technology.
Shares in Oxford Nanopore were down 8.0% at 96.65 pence in London on Tuesday morning.
The Oxford-based specialist in DNA and RNA sequencing technologies reported an 8% increase in 2024 revenue to GBP183.2 million, up from GBP169.7 million the previous year. At constant currency, the company said revenue grew 11%, driven by demand outside its core research market, particularly in Applied Industrial, up 42%, BioPharma, up 18%, and Clinical, up 12%, segments.
Despite the top-line growth, pretax loss narrowed slightly to GBP140.0 million from GBP149.8 million, while diluted loss per share improved to 16 pence from 19 pence. Gross margin rose 420 basis points to 58%, surpassing guidance and reflecting improvements across the product portfolio.
In a bid to control costs, Oxford Nanopore announced a workforce reduction of around 5%, affecting research, commercial, and corporate teams. The company expects to take a GBP6 million charge for redundancy payments in 2025.
Looking ahead, the firm expects revenue growth of 20% to 23% in 2025 at constant currency, with a gross margin of around 59%. It also reaffirmed its medium-term goal of exceeding 30% revenue compound annual growth rate through 2027, underpinned by "continued penetration in the Research market and expansion into emerging end-market opportunities."
Chief Executive Officer Gordon Sanghera said: "We enter 2025 with strong operational momentum and a growing opportunity pipeline. While macroeconomic and geopolitical uncertainties persist, our highly differentiated platform, commercial capabilities and robust balance sheet continue to position us well to capture the substantial market opportunity and deliver long-term sustainable above market growth and attractive returns for our shareholders."
By Eva Castanedo, Alliance News reporter
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