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1. Company Snapshot

1.a. Company Description

Oxford Nanopore Technologies plc develops and commercializes a technology platform using nanopore-based sensing for the analysis of various types of molecules.The company offers MinION, a portable device for deoxyribonucleic acid and ribonucleic acid sequencing; GridION, a self-contained benchtop device for running and analyzing up to five MinION or Flongle flow cells; MinION Mk1C for basecalling and data analysis, touchscreen operation, and wireless connectivity; Flongle, an adapter for use in MinION or GridION devices to attach a Flongle flow cell; GridION Mk1, a benchtop nanopore sequencer; PromethION 2 Solo and PromethION 2, a low-cost access to high-yield PromethION sequencing; PromethION 24 and PromethION 48 benchtop nanopore-based sequencers for multiple users to deliver multi-sample and multi-experiment sequencing results; and VolTRAX, an USB-powered device, which automates laboratory processes upstream of nanopore sequencing.It also provides MinKNOW, a software that offers data acquisition, real-time analysis and feedback, local basecalling, and data streaming; Basecalling tools to determine the identity and order of bases on the DNA/RNA molecule; EPI2ME, a cloud-based data analysis platform for end-to-end analysis of nanopore data in real time; and EPI2ME Labs, a bioinformatics solution to assist users in developing their skills and confidence in the analysis of their nanopore-based sequencing data.


In addition, the company is developing MinION Mk1D; Ubi; Plongle; and SmidgION products.It sells its products online.The company was formerly known as Oxford NanoLabs Limited and changed its name to Oxford Nanopore Technologies Limited in May 2008.


Oxford Nanopore Technologies plc was incorporated in 2005 and is based in Oxford, the United Kingdom.

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1.b. Last Insights on ONT

Oxford Nanopore Technologies' recent performance has been positively driven by advancements in its nanopore-based sequencing technology. A notable development is the launch of ViruSure's first-in-class viral contamination test for biopharmaceuticals, which utilizes Oxford Nanopore's technology. This GLP-validated test enables the detection of adventitious viral agents, marking a significant milestone in pathogen safety testing. Furthermore, the company's innovative technology continues to garner attention, with no recent earnings release or share buyback announcements noted.

1.c. Company Highlights

2. Oxford Nanopore Delivers Strong FY 2024 Results with 23% Revenue Growth

Oxford Nanopore reported a robust financial performance for its fiscal year 2024, with underlying constant currency revenue growth of 23%, reaching GBP 183 million. This figure aligns with the company's guidance range of 20%-30%, demonstrating strong execution and market adoption. The gross margin improved to 57.5%, driven by manufacturing efficiencies and recycling initiatives, despite currency headwinds. However, the adjusted EBITDA loss widened to GBP 116.1 million, reflecting ongoing investments in growth areas. The company ended the year with a solid cash position of GBP 403.8 million, supported by a GBP 80 million equity raise. On a valuation basis, the stock currently trades at a price-to-sales ratio of 5.79 and an enterprise value-to-EBITDA ratio of -6.56, reflecting the market's expectations for future growth.

Publication Date: Mar -09

📋 Highlights
  • Strong Revenue Growth and Margin Expansion: Oxford Nanopore delivered a 23% underlying constant currency revenue growth in FY 2024, reaching GBP 183 million, with a gross margin of 57.5%, driven by manufacturing efficiencies and recycling, despite currency headwinds. The company aims for a gross margin of 59% in 2025, with further improvements expected from operational enhancements.
  • Applied Industrial and Clinical Market Adoption: The applied industrial segment grew over 40%, driven by strong adoption in biopharma, clinical, and synthetic biology markets. PromethION revenues increased by 55.8%, while MinION revenues declined due to the phase-out of Mk1C devices, though growth is expected to resume in 2025 with new product launches.
  • Restructuring and Cost Management: The company implemented a restructuring program, reducing headcount by nearly 5% to reallocate capital to high-growth areas. Adjusted costs are expected to grow at the low end of the medium-term guidance range, supporting the company's path to adjusted EBITDA breakeven by 2027 and cash flow positivity by 2028.
  • Product Launches and Platform Expansion: Oxford Nanopore launched the GridION Q-Line in 2024 and plans to roll out the PromethION Q-Line in 2025, coupled with its automated sample-to-answer platform, ElysION. The company also focuses on improving PromethION Flow Cell manufacturing, aiming for a 10% margin boost through better yields and recycling.
  • Strategic Shift to Non-Research Markets: Non-research markets, including biopharma, clinical, and applied industrial, are expected to drive future growth, with biopharma alone projected to account for 20-30% of revenue by 2027. The company is evolving its pricing model and focusing on multiomics and proteomics to expand its market reach and improve margins.

Revenue Breakdown and Market Adoption

Consumables, including Flow Cells and Kits, remained the largest contributor to revenue, accounting for 74% of the total. The company saw strong adoption across its key markets, with the applied industrial segment growing over 40%. The P2 platform played a pivotal role, with over 1,900 P2 sequencers deployed in the field. PromethION flow cell utilization surged by 36% in the second half of 2024, highlighting increasing customer engagement. Nick Keher, CFO, noted, "The improvement in gross margin to 57.5% reflects our focus on operational efficiency and cost management, despite external challenges."

Product Launches and Future Outlook

Oxford Nanopore launched the GridION Q-Line in 2024 and plans to roll out the PromethION Q-Line in 2025, alongside its automated sample-to-answer platform, ElysION. These launches are expected to drive further adoption in clinical, biopharma, and applied industrial markets. The company has guided for 20%-23% revenue growth in 2025, with a gross margin target of 59%, up 100 basis points year-on-year. Adjusted costs are expected to grow at the low end of the medium-term guidance range, supporting the company's path to adjusted EBITDA breakeven by 2027 and cash flow positivity by 2028.

3. NewsRoom

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Bio-Techne (TECH): Valuation Spotlight Following Expanded Oxford Nanopore Partnership and Growth Strategy Realignment

Oct -10

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Bio-Techne and Oxford Nanopore Technologies Expand Agreement to Accelerate Development of Genetics Portfolio Through 2032

Oct -09

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Prinses Máxima Center for Pediatric Oncology Implements Callisto™ from Volta Labs to Streamline Clinical Genomics Workflows

Sep -10

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Oxford Nanopore Technologies First Half 2025 Earnings: Revenues Beat Expectations, EPS In Line

Sep -05

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UK£2.00 - That's What Analysts Think Oxford Nanopore Technologies plc (LON:ONT) Is Worth After These Results

Sep -04

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ViruSure launches pioneering first-in-class viral contamination test for biopharmaceuticals using Oxford Nanopore technology

Aug -07

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FTSE 100 ends day above 9,000 points for first time

Jul -21

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Stocks to watch next week: Tesla, Alphabet, Intel, Lloyds and JD Wetherspoon

Jul -18

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.47%)

6. Segments

Life Science Research Tools

Expected Growth: 10.47%

Oxford Nanopore Technologies plc's Life Science Research Tools segment growth is driven by increasing adoption of portable, real-time sequencing technology, expanding applications in genomics, epigenomics, and transcriptomics, and growing demand for rapid, accurate, and cost-effective DNA sequencing solutions in research and diagnostics.

7. Detailed Products

MinION

A portable, real-time, long-read sequencer that can be used in a variety of settings, including laboratories, hospitals, and even in the field.

PromethION

A high-throughput, real-time sequencer that can process multiple flow cells simultaneously, ideal for large-scale genomics and transcriptomics projects.

Flongle

A low-cost, portable adapter that enables real-time sequencing on the MinION, ideal for small-scale sequencing projects and proof-of-concept studies.

VolTRAX

A sample preparation device that automates the preparation of DNA libraries for sequencing, ideal for high-throughput sequencing projects.

Nanopore sequencing kits

A range of kits that provide the necessary reagents and consumables for sequencing on Oxford Nanopore Technologies' platforms.

8. Oxford Nanopore Technologies plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Oxford Nanopore Technologies plc has a low threat of substitutes due to its unique and proprietary sequencing technology, which provides a high level of accuracy and portability.

Bargaining Power Of Customers

The bargaining power of customers is moderate, as Oxford Nanopore Technologies plc has a diverse customer base, including research institutions, hospitals, and biotech companies, which reduces dependence on a single customer.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low, as Oxford Nanopore Technologies plc has a diversified supply chain and is not heavily dependent on a single supplier.

Threat Of New Entrants

The threat of new entrants is high, as the sequencing market is attractive and has low barriers to entry, which may lead to new competitors entering the market.

Intensity Of Rivalry

The intensity of rivalry is high, as Oxford Nanopore Technologies plc operates in a highly competitive market with established players, such as Illumina and PacBio, which may lead to price wars and intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.08%
Debt Cost 5.13%
Equity Weight 93.92%
Equity Cost 7.13%
WACC 7.00%
Leverage 6.47%

11. Quality Control: Oxford Nanopore Technologies plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Pharming

A-Score: 3.7/10

Value: 3.2

Growth: 3.9

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Oxford Nanopore Technologies

A-Score: 3.6/10

Value: 6.6

Growth: 3.8

Quality: 4.3

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

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Immatics

A-Score: 3.5/10

Value: 6.8

Growth: 6.1

Quality: 4.1

Yield: 0.0

Momentum: 4.0

Volatility: 0.0

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Prothena

A-Score: 3.0/10

Value: 7.0

Growth: 1.8

Quality: 4.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

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Evogene

A-Score: 3.0/10

Value: 9.0

Growth: 3.0

Quality: 5.6

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

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Ryvu Therapeutics

A-Score: 2.6/10

Value: 6.2

Growth: 2.6

Quality: 4.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.25$

Current Price

1.25$

Potential

-0.00%

Expected Cash-Flows