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(Sharecast News) - Oxford Nanopore Technologies warned on Monday that half-year trading had missed expectations, sending shares in the biotech sharply lower, on the back of difficult conditions in China and the Middle East.
The company, which has developed nanopore-based sensing technology for use in DNA and RNA analysis, said revenues in the six months to 30 June were set to come in around 116.5m, up 10% or 12% on a constant currency basis. However, it acknowledged that was below internal expectations.
It blamed the below-par performance on China, where revenues slid 16% on the back of enhanced export control restrictions and changes to commercial operations in the region. It also flagged a 14% fall in revenues in the Middle East, due to the US-Iran war. Once both regions were stripped out, group revenues rose 16%.
In addition, while revenues in North and South America rose 12%, that was slower than anticipated due to the timing of customer orders and contract wins.
Shares in the FTSE 250 firm plunged as trading got underway, and by 0815 BST had shed 18% at 99.1p.
However, Oxford Nanopore left its full-year guidance unchanged, for revenue growth of between 21% and 25%. Although it acknowledged that the tough conditions in China and the Middle East were expected to continue, it flagged a ""materially stronger" second half on the back of ongoing momentum in its applied markets division and additional collaboration and licensing revenue opportunities.
It also reaffirmed long-term plans to break even next year.
Francis Van Parys, chief executive, said: "While first-half revenue growth was below our expectations, we have continued to make good operational progress in the period, delivering further improvements in gross margin and disciplined cost control, keeping us on track to achieve adjusted EBITDA breakeven during the 2027 full-year."
The firm - which was founded in 2005 as a spinout from the University of Oxford - is due to publish interim numbers on 19 August.
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