Proactive Investors - Oxford Nanopore Technologies PLC (LON:ONT) said it has seen disruption to its diagnostics businesses due to the US/China trade war and second-half sales growth was slower than expected in some areas.
Over 2023, revenue from research tools was up 15% to £169 million, and around 39% higher excluding Covid and the Emirati Genome program (EGP).
Underlying revenues in the second half of the year to December 2023 grew approximately 32%, but were impacted by a slower-than-expected ramp-up by some new customers, with these sales now expected to come through in 2024, the company said in a trading update.
Growth in China and the Middle East was also affected by the recent US trade rule further regulating sales of advanced AI semiconductors.
Revenues from the EGP were £12 million but the US$68 million contract, which runs until 2026, has now been amended and Oxford Nanopore does not expect any material future revenues.
The amendment also removes the purchase commitment from the contract.
Oxford Nano added it remains on track for 30% medium-term revenue growth and to break even in 2026, with the gross margin target of greater than 65% in that year also unchanged.