Oxford Nanopore Technologies (ONT) 21st Annual Goldman Sachs European Medtech and Healthcare Conference summary

Technology differentiation and market positioning

• Long-read sequencing enables detection of structural and copy number variations, methylation, and comprehensive genome coverage, addressing gaps left by short-read methods.

• Electronic, non-optical sequencers allow for small, decentralized, and cost-effective devices, supporting both point-of-origin and large-scale applications.

• Multi-omics capability, including native DNA and RNA sequencing with methylation detection, positions the platform for future growth in cancer and neurological disease research.

• Scalability and real-time data streaming provide a competitive edge, with a roadmap to reduce genome sequencing costs and increase throughput.

• The platform supports both CapEx and OpEx models, broadening accessibility and adoption across research and applied markets.

Financial performance and growth outlook

• Achieved 12.4% underlying revenue growth to £84 million in H1, maintaining full-year guidance of 20%-30% growth despite a challenging market.

• Gross margins improved to 58.8%, driven by manufacturing efficiencies, with a medium-term target of over 62% by 2027.

• Increased utilization of larger instruments and a growing, more efficient sales force support future growth.

• New product launches, such as the Q-Line for regulated markets, and expansion in biopharma and applied segments are expected to drive additional revenue.

• China remains a growth market despite regulatory hurdles, with double-digit underlying growth and increasing consumable utilization.

Strategic initiatives and market expansion

• Population-scale genomics programs, such as the Singapore deal, are driving adoption of long-read sequencing and local reference genome creation.

• Applied markets, including plasmid sequencing, represent significant white space and rapid growth opportunities, with service providers adopting the platform.

• Partnerships and collaborations, including with bioMérieux and Tecan, accelerate clinical and biopharma market penetration.

• Regulatory-compliant platforms and automated workflows are being developed to support clinical diagnostics and biomanufacturing.

• The company is not heavily reliant on taking share from short-read sequencing; growth is expected from new applications and underpenetrated markets.