Oxford Nanopore warns of 'material uncertainty and risk' in US
Oxford Nanopore Technologies
111.50p
16:39 21/03/25
Biotechnology company Oxford Nanopore warned of "material uncertainty and risk" surrounding its US business on Tuesday after Donald Trump vowed to cut federal government spending by up to $1.0trn per year.
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Funding to the US National Institutes of Health was at risk, said Oxford Nanopore, which has as much as 16% of its revenues exposed to funding from NIH and other US federal institutions. It also said a "tightening of export control restrictions" would likely weigh on its underlying performance.
The FTSE 250-listed group expects future growth "to be somewhat impacted by changes to Federal funding in the US for institutions such as the NIH". However, it noted that "the materiality of this impact" was still uncertain as the situation was still evolving.
On another note, Oxford Nanopore posted an 11.1% jump in revenues to £183.2m in FY24, with gross profits up 16.5% at £105.4m and gross margins improving 420 basis points to 57.5%. Adjusted underlying losses, however, widened 11.2% to £116.1m.
As of 0955 GMT, Oxford Nanopore shares were down 6.57% at 98.20p.
Reporting by Iain Gilbert at Sharecast.com