- As a result, bioMérieux now owns 3.5% of Oxford Nanopore’s shares
- Shares of Oxford Nanopore rose sharply on Thursday but fell on a 12-month basis
Shares in Oxford Nanopore Technologies rose sharply on Thursday after the company announced details of a multi-million pound investment.
The London-listed biotech group, which emerged from Oxford University in 2005, told investors it had secured one £70 million investment from French in-vitro diagnostics group bioMérieux.
As a result of the investment, bioMérieux now owns 3.5 percent of Oxford Nanopore’s shares and expects to increase this stake “from time to time, depending on availability and price.”
Investment: Oxford Nanopore Technologies shares rose sharply after the company announced details of a multi-million pound investment
Shares in Oxford Nanopore rose 17.07 per cent, or 32.10 pence, to 220.20 pence on Thursday afternoon, after falling around 10 per cent in the last year.
The money will support Oxford Nanopore’s further development of its “game-changing” nanopore-based IVD technology.
Under the agreement, an IVD Advisory Board will be established to advance nanopore technology in clinical applications.
Gordon Sanghera, CEO of Oxford Nanopore, said: “This investment will enable us to deliver rapid, accessible and affordable clinical tools more quickly to meet unmet needs and improve healthcare worldwide.”
Oxford Nanopore added: “Together, the companies aim to address a significant unmet need in the clinical and diagnostic markets – an opportunity where nanopore sequencing is uniquely positioned to make an impact where information-rich, rapid, accessible and affordable sequencing is critical.”‘
Pierre Boulud, head of bioMérieux, said: “This investment will strengthen our existing partnership with Oxford Nanopore and provide more resources for the development of innovative IVD solutions.”
“Based on our six decades of experience in in vitro diagnostics, we believe that the new generation of sequencing technology developed by Oxford Nanopore holds great promise to meet future diagnostic needs and patient care, particularly in light of the ever-growing Number of infectious diseases, further improve disease threat.’
In addition to the £70 million investment, Oxford Nanopore announced a new partnership with US healthcare group Mayo Clinic to develop new clinical tests for diseases, including detecting a genetic predisposition to cancer, as well as other tests to improve Patient care.
The company reiterated its goal of reaching EBITDA breakeven by 2026.
Victoria Scholar, Head of Investment at Interactive Investor, said: “These updates provided a significant tailwind to the company’s shares, which rose by almost a fifth in today’s session, helping to reverse some of the year-to-date decline.
“In September the company reported some challenging results: first half revenue fell almost 30 per cent to £86m and gross profit fell 37 per cent to £49.5m.”
She added: “Oxford Nanopore was formed in 2005 as a spin-off from the University of Oxford and went public two years ago, at the height of the pandemic in September 2021, making it the third largest biotech listing of the year.”
“Its technology has been instrumental in identifying and tracking the spread of Covid variants in many countries.”
“With government contracts for Covid testing set to expire last year, the company is trying to figure out how to deliver results in a post-pandemic world.”
“Oxford Nanopore shares initially soared in the months following the IPO, but have struggled since December 2021, losing around 60 percent over the last two years, even after today’s bounce.”