The Company has been notified that, on 25 March 2025, Kate Priestman, a Non-Executive Director of the Company and a Person Discharging Managerial Responsibilities, purchased a total of 17,726 ordinary shares in the Company at a price of £1.120324 per share. |
Prudence would suggest that most analysts would opt for a 'hold' recommendation after a period of sustained underperformance plus the possibility of a bid emerging BUT commonsense is in pretty short supply nowadays. |
That looks more like a move to allow the shorters to close out to me. Added a few at 1.03. |
Stifel analyst James Orsborne cut the recommendation on Oxford Nanopore Technologies Plc to sell from hold.
PT set to 100 pence, implies a 10% decrease from last price. - this would appear to account for the move this morning
He was at 100p from May last year to January this when he took target price up to 135p and has now taken it down again. |
Short attack? |
 Full FT articleFormer UK IPO star Nanopore admits it is a takeover targetDNA sequencing specialist's decision to list in London in 2021 was seen as a victory for the market at the timeGordon Sanghera © Charlie Bibby/FTThe boss of the UK biotech seen as a beacon of hope for the London IPO market only four years ago has admitted the business has become a takeover target.Oxford Nanopore's chief executive and co-founder Gordon Sanghera told the Financial Times that the gene sequencing company, whose shares have fallen 85 per cent from their 2021 peak, is "exposed" to acquisition.For three years after the listing, Sanghera's Nanopore shares allowed him to veto an acquisition, but this has now expired. "Should [the veto right] have been a bit longer?" he said in an interview. "Right now, from where I'm sitting, we feel rather exposed."He added that the business was not afraid of being bought by the "right person". Bankers have said it can be attractive to one of the big diagnostics specialists, such as Thermo Fisher Scientific or Danaher. Neither company responded to a request for comment.Nanopore was spun out of Oxford university in 2005 with a pioneering technology for sequencing DNA on handheld devices. These are mainly bought by scientists and large public research projects such as the UK Biobank, but sales shot up during the pandemic when they were used to track Covid-19 variants spreading around the world.Handheld device for sequencing DNANanopore was spun out of Oxford university in 2005 with a pioneering technology for sequencing DNA on handheld devices © Charlie Bibby/FTThe company's decision to list in London in 2021 was seen as a victory for the market: UK tech and biotech companies have generally chosen the Nasdaq. After the IPO, shares traded at more than £7 at their highest but as demand waned with the pandemic, investors started to worry about growth prospects.Charles Weston, an analyst at RBC Capital Markets, said the company had grown at a similar pace as it promised at the IPO, but the "market fell out of love" with it.Its shares now hover around £1 for a market capitalisation of just over £950mn.Line chart of Share price, pence showing Nanopore shares have been hit by worries about growthDespite the languishing price, the company still has big-name backers. Oracle billionaire Larry Ellison recently increased his stake, and Novo Holdings, the investment company behind drugmaker Novo Nordisk, invested £50mn last summer. It is also starting to have some success in the market for pharmaceutical quality assurance, selling its devices to drugmakers testing the complex new treatments that are coming to market.One large investor said shareholders should be able to defend the company from any unwanted offer, because together, the top 10 own 58 per cent. Another investor said many shareholders had invested before the IPO, at prices far above the current level, so were unlikely to accept a low- ball offer.Sanghera, who has been chief executive from the start, said Nanopore had been at a turning point for the past three or four years, but it had been "a bit like turning" a tanker.In its most recent results, it reported revenue growth of 8 per cent in 2024, or 23 per cent on an underlying and constant currency basis when Covid sales and a large one-off contract from the UAE were excluded. This year, it forecasts 20-23 per cent sales growth. It is cutting costs by 9 per cent, about half of this from staff, and is aiming to break even in 2027. To achieve this, Sanghera said Nanopore would have to maintain compound annual growth of 30 per cent in the next three years - the same pace it has managed in the past three - and accelerate its sales into other markets.Technicians do mobile DNA sequencing using Nanopore's mobile technologyTechnicians do mobile DNA sequencing using Nanopore's mobile technology © Charlie Bibby/FTSanghera said he had thought that new clinical products, such as a drug- resistant tuberculosis test it is developing with the French company BioMérieux, would be a more immediate source of revenue than supplying its sequencing devices to the pharma manufacturing market.But the opposite has happened, he said, with demand from manufacturing turning on like a "light switch".DNA sequencing has become vital for testing new complex treatments, such as cell and gene therapies, with regulators stipulating it as part of the quality control process.Sanghera added that in the clinical test sector, the "ultimate prize is huge" but it was hard to shift the incumbents. Nanopore noted that these companies could also be partners in developing tests.Miles Dixon, an analyst at Peel Hunt who has a "reduce" rating on the stock, said the company had often touted new potential markets for its technology, only for them to slip down the priority list. "It is an ever changing story with jam always coming tomorrow," he said.Nanopore's rivals have also come under pressure. The biotechs that buy gene sequencing devices have been struggling for funding since a pandemic boom started to fade in 2022 and government-funded research is being cut, most recently, at global behemoth the US National Institutes of Health.Portable sequencing deviceSanghera says new clinical products, such as a TB test Nanopore is co-developing, would be a faster source of revenue than supplying its devices to pharma manufacturers © Charlie Bibby/FTGrowth has also slowed in China as the country tightens import controls, while Russia's full-scale invasion of Ukraine caused general supply chain problems. Both Illumina, the largest DNA sequencing company, and PacBio, which has the closest technology to Nanopore, forecast lower revenue growth than Nanopore this year. "Just when you think it can't get any worse, there's just this onslaught," Sanghera said.Some market veterans have suggested the company would have done better on the Nasdaq. One M&A lawyer said it was part of a class of companies that listed a few years ago that had an "enormous erosion of value" because of a lack of liquidity and specialist investors in London. But on the Nasdaq, shares in Illumina are down 37 per cent in the past year, while PacBio has fallen 68 per cent. "I won't shy away from accepting the sophistication of the Nasdaq investors to understand the complexity of our story differently," Sanghera said. "It just doesn't help in this market." |
Former UK IPO star Nanopore admits it is a takeover target
The boss of the UK biotech seen as a beacon of hope for the London IPO market only four years ago has admitted the business has become a takeover target.
Oxford Nanopore’s chief executive and co-founder Gordon Sanghera told the Financial Times that the gene sequencing company, whose shares have fallen 85 per cent from their 2021 peak, is “exposed” to acquisition.
For three years after the listing, Sanghera’s Nanopore shares allowed him to veto an acquisition, but this has now expired. “Should [the veto right] have been a bit longer?” he said in an interview. “Right now, from where I’m sitting, we feel rather exposed.”
He added that the business was not afraid of being bought by the “right person”. Bankers have said it could be attractive to one of the big diagnostics specialists, such as Thermo Fisher Scientific or Danaher. Neither company responded to a request for comment.
Nanopore was spun out of Oxford university in 2005 with a pioneering technology for sequencing DNA on handheld devices. These are mainly bought by scientists and large public research projects like the UK Biobank, but sales shot up during the pandemic when they were used to track Covid variants spreading around the world...
more... |
With Ellison being one of the largest shareholder any takeover will need his blessings |
I'm looking forward to Roche sniffing around ONT. Should trigger interest from the US. Solexa pt 2 |
The conclusion nailed it and says it all how high quality domestic UK companies are short sell targets.... |
That's a very interesting and comprehensive review of ONT,thank you bamboo2.I've pasted the conclusion which suggests a price target of around 3 quid."I think a valuation comparison to Illumina is valid because, despite being much smaller, Oxford Nanopore appears to be ploughing a niche and is growing much faster.Based on the below chart, a price to turnover of eight to ten seems fair compared to Oxford Nanopore's current rating of five.Consensus revenue forecast for 2027 is £379 million according to SharePad. An eight to ten revenue multiple would equate to a market capitalisation of between £3 billion and £3.8 billion compared to £960 million today.A final whingeOxford Nanopore isn't perfect, but it is one of the only truly world class technology companies listed in London. I read investors whining all the time that there are no good companies listed in the UK and yet here is one that is totally unloved by the market. You cannot expect to have a thriving stock market if domestic investors do not support it and instead send their money to the US via Vanguard.Oxford Nanopore is at risk like predecessor Solexa of being gobbled up by a deep pocketed US group. Should that happen, its manufacturing which is currently done entirely in Oxford would be vulnerable to re-shoring. London would lose yet another company from its rapidly shrinking stock market. That would be a shame. |
Gaining traction, hope it continues, GLA |
He has a good entry price. |
Nice Director buy
The Company has been notified that, on 11 March 2025, John O'Higgins, a Non-Executive Director of the Company and a Person Discharging Managerial Responsibilities, purchased a total of 77,000 ordinary shares in the Company at a price of £0.9717 per share. |
Fantastic find! |
LOL. Couple more days like this and I will be in profit! |
I did in spirit but not with cash....hope that counts ? |
Well done to the true believers who bought in the low 90s! |
Joined you for a few while its still under 100, GLA |
Nice conclusion to that paper;
"This is the first study to provide a robust validation protocol for 16S amplicon-based sequencing using ONT, providing a comparative analysis of various sequencing approaches and assay chemistries, emphasizing the critical need for laboratory standardization in diagnostic techniques; particularly regarding the biases introduced during sample processing, DNA extraction, amplification, and sequencing.
In addition to ensuring continuous quality assurance, the use of well characterized reference materials is crucial for validating emerging diagnostic technologies and establishing a framework for implementing ONT sequencing protocols in clinical microbiology laboratories.
This study establishes a foundation for advancing diagnostic microbiology and improving patient care outcomes through enhanced detection capabilities. It provides essential insights for UK agencies involved in External Quality Assurance (EQA) materials, such as UK NEQAS, and supports the licensing of new diagnostics by the MHRA, as well as the review and accreditation of diagnostic laboratories by UKAS. Ultimately, these efforts will facilitate the integration of innovative methodologies into routine diagnostic practices on a broader scale."
Brilliant from a health perspective, any idea of the potential commercial impact here? |
[use link for complete article]
original paper
UK scientists develop DNA sequencing system to fight superbugs
Exclusive: Sequencing will help doctors identify bacteria that cause infections and offer effective treatments faster and more accurately
Andrew Gregory Health editor
Thu 6 Mar 2025 05.00 GMT
Scientists have developed a rapid DNA sequencing system to stem the rise of superbugs by identifying bacterial infections faster and more accurately.
Currently, hospital labs can take as long as seven days to specify bacterial infections, while for some infections a definitive diagnosis may take eight weeks.
In the meantime, doctors may have to give patients broad-spectrum antibiotics, which carry risks of side-effects and complications, may fail and prolong the illness, and can lead to antibiotic resistance and superbugs spreading across wards.
Now scientists have developed a solution. In a UK first, the Medicines and Healthcare products Regulatory Agency (MHRA) and Barts Health NHS trust in London have designed a DNA sequencing programme to diagnose bacterial infections much faster and more accurately.
It enables scientists to identify the specific type of bacteria and which antibiotics it might be resistant to, helping doctors give the patient the most effective treatment, instead of broad-spectrum antibiotics.
The pioneering system, successfully trialled in 2,000 NHS patients, is already helping doctors offer better-targeted treatments earlier. This means a much quicker recovery, fewer complications such as sepsis, and a lower risk of others picking up the infection and of superbugs emerging in wards.
The new method can reliably detect which bacteria are causing an infection and which antibiotics will work best to treat it. The approach delivers results within 48 hours, significantly faster than traditional methods.
Experts say the breakthrough paves the way for rapid DNA sequencing to become a routine part of hospital diagnostics across the NHS, bringing faster, more accurate testing to patients nationally.
Dr Chrysi Sergaki, head of microbiome at the MHRA, said rapid DNA sequencing was “crucial in the fight against superbugs”.
She added: “The pilot has demonstrated that this new technology is already making a real difference to patients’ lives. When someone comes into hospital with a serious infection, every hour counts.
“Instead of waiting days or even weeks to identify exactly what’s causing their infection, hospitals can now get answers within 48 hours. This means doctors can start the right treatment sooner, helping patients recover faster and get back home to their families.”
Ian Butler, lead clinical scientist in medical microbiology at Barts, said traditional diagnostics relied on growing bacteria in the lab from patient samples.
This can take a week or longer and “lacks sensitivity”, especially in patients already on broad-spectrum antibiotics for serious infections, such as sepsis or meningitis.
“Since the use of broad-spectrum antibiotics can reduce the bacterial yield in a patient, these cultures often yield negative results, meaning bacteria fail to grow in the lab.
“This makes it difficult to obtain a definitive diagnosis, leaving patients on prolonged broad-spectrum antibiotic therapy, which not only delays effective treatment but also increases the risk of antibiotic resistance.”
Rapid DNA sequencing, by contrast, can spot the specific infection in clinical samples even when bacteria have been damaged or their levels significantly reduced due to prior antibiotic treatment, Butler said.
“By identifying bacteria quickly and accurately, especially in patients previously treated with antibiotics, we can administer the correct targeted antibiotics sooner. This ensures a much faster recovery while reducing the risk of side effects and complications associated with broad-spectrum antibiotics.
“Not all antibiotics are effective against all bacteria and specific bacteria are more susceptible to certain antibiotics than others. If the wrong antibiotic is used, treatment can fail, leading to prolonged illness and greater risks to the patient. This makes it essential to determine the exact cause of an infection to provide the safest and most effective treatment.”
The World Health Organization has described superbugs as “one of the top global public health and development threats”.
Last month, a National Audit Office report warned that they were already contributing to more than 35,000 deaths a year in the UK and that the government “remains a long way” from achieving its aim of containing and controlling them.
Butler said cutting the use of broad-spectrum antibiotics with rapid DNA sequencing could help turn the tide in the war on superbugs.
“Prolonged use of broad-spectrum antibiotics doesn’t just affect the individual patient – it can promote bacterial mutations, leading to antibiotic resistance and the emergence of superbugs,” he said.
“These superbugs can cause deadly infections, such as hard-to-treat sepsis, and once established, they can spread within hospitals. This puts other patients – especially those who are already seriously ill – at even greater risk.
“By rapidly pinpointing infections and delivering precise treatment, this new approach not only improves patient outcomes but also helps prevent antibiotic-resistant superbugs from taking hold in hospitals, protecting future patients and the wider public.” |
Collaboration will build on Oxford Nanopore’s ongoing investment in Canada and support future research initiatives aimed at addressing health disparities
Genome Canada and Oxford Nanopore Technologies today announced a collaboration aimed at significantly enhancing genomics research across Canada. Through the Canadian Precision Health Initiative (CPHI), the collaboration will help researchers and clinicians build a comprehensive database of human genomic insights, enhancing the understanding of Canada's diverse genetic architecture to drive innovation and advancements in personalised precision health research.
Genome Canada is Canada’s largest funding body tasked with advancing genomics-based research across health, agriculture, and the environment. By fostering collaboration amongst academic, public, private, and non-profit sectors, Genome Canada accelerates the development of innovative solutions to tackle critical challenges such as climate change, food security, and health disparities. |
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