NEW YORK – Oxford Nanopore Technologies said on Monday that it expects life sciences research tools (LSRT) revenues for the first half of 2023 to grow approximately 22 percent year over year.
For the six months ended June 30, the UK nanopore sequencing firm estimates its LSRT revenue to be about £86.0 million ($112.4 million). This represents 22 percent year-on-year growth on a reported basis, or 16 percent on a constant currency basis, compared to £70.6 million in H1 2022.
Excluding revenues from the Emirati Genome Program and COVID-19 sequencing, Oxford Nanopore’s LSRT revenue growth is expected to be approximately 46 percent on a constant currency basis, driven by the company's growing customer base.
"We have delivered strong underlying revenue growth in the first half of 2023, as demand for our technology continues to grow from an increasingly broad and diverse base of customers," Oxford Nanopore CEO Gordon Sanghera said in a statement.
For full-year 2023, Oxford Nanopore maintained its guidance of 16 percent to 30 percent LSRT revenue growth on a constant currency basis. Excluding revenue from the Emirati Genome Program and COVID-19 sequencing, LSRT revenues are expected to grow more than 30 percent per annum on a constant currency basis in both 2023 and the medium term.
"Overall, though ONT shares have seen a few [percentage points] of outperformance vs. the sector last week, we note shares have underperformed [year-to-date], on concerns around a topline slowdown," James Gordon, an analyst for JP Morgan, wrote in a research note. "[W]e believe the strong H1 performance and reiterated FY23 and medium-term guidance should be positively received by the market."
Oxford Nanopore plans to release its full H1 financial results on Sept. 6.
In afternoon trading on the London Stock Exchange, the company's shares were up 11 percent to £247.8.