Shares of Oxford Nanopore Technologies have gained Tuesday after the company updated its revenue guidance.
The update is a result of the company's significant expansion in a large customer project in the UAE.Â
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On November 9, 2021, Oxford Nanopore was awarded a 36-month contract to provide devices, consumables, including flow cells and kits, and other support services worth approximately $68 million.
The new contract with G42 Laboratory, which provides sequencing operations in the project, is expected to generate revenues primarily after 2021.Â
Therefore, the company previously said it is maintaining its guidance of core Life Science Research Tools (LSRT) revenue of £105 million to £111 million in FY21, resulting from 60-70% growth.Â
However, they added that given the scale of the new contract, it is now introducing guidance for LSRT revenue of £135 million to £145 million for FY22.Â
Oxford Nanopore is also upgrading its LSRT revenue guidance for FY23 to between £170 million and £190 million, compared to its previous expectation of between £165 million and £175 million.
As investors would have expected, the company's share price has rallied on the news, trading over 6.7% above Monday's close at 582.5p.
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