Oxford Nanopore Technologies shares rise as losses narrow

Oxford Nanopore Technologies reported a significant narrowing of its financial losses for the first half of the year, leading to a rise in its share price. The DNA-sequencing company reported revenue of £116.7m for the six months ending June 30, representing a 12.3% increase at constant currency.

Adjusted EBITDA loss was reduced to £22.1m, down from £48.3m in the previous year, while the overall loss for the period fell to £48.0m from £71.8m. Growth was driven by clinical and biopharma markets, which rose 35% and 25% respectively, and strong demand in Europe and the Americas. This growth was partially offset by a nearly 16% decline in sales in China.

Chief Executive Officer Francis Van Parys stated the company is making progress in product development and operational performance. The company reiterated its goal to reach adjusted EBITDA breakeven in FY27 and positive free cash flow in FY28, with a long-term revenue ambition of exceeding $1bn annually. Additionally, the company recently signed a $20m cross-licensing deal with a global diagnostics firm.