This week we are treating our subscribers to a more in-depth evaluation of Oxford Nanopore Technologies [LON:ONT], the closely followed biotech stock which reported numbers on 21 March. The company reported revenues for the last year up almost 50%, but post-Covid, does this stock still have legs?
Investors will be worried that a lot of that revenue uptick is accounted for by Covid testing (£52m in 2022) and analysts reckon revenue from the company's other tech, e.g. sequencing devices - may take some time to be realised.
Looking at the Oxford Nanopore share price, it has reversed trend since the last set of numbers. Stock had been developing a worrying downwards direction in January and February. At time of writing it was still 211p and down 18.5% over the last six months. The question is, does this have anything to do with Oxford Nanopore's fundamentals, or are investors starting to anticipate that the next set of numbers from the company will be less bullish?
Another big factor is remarks to Bloomberg from CEO Gordon Sanghera, who dropped hints about a possible overseas listing, AND refused to rule out de-listing from the London exchange. This does no favours for existing shareholders, but this could just mean a secondary listing like that pursued by Indivior [LON:INDV].
Following that last set of numbers, we look at how Oxford Nanopore stacks up against other firms in its space and conclude on whether we like the stock ourselves.
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