In a significant move aimed at enhancing the speed and efficiency of genomic analysis for infectious diseases, Oxford Nanopore Technologies has formed a strategic partnership with Cepheid. This collaboration seeks to accelerate the delivery of genomic results for bacterial and fungal pathogens, slashing the time required from days to mere hours, a substantial improvement over existing technologies.

Following the announcement on April 9, 2023, shares of Oxford Nanopore, which is listed on the London Stock Exchange, saw a notable increase, opening 6% higher on April 10. This surge reflects investor optimism regarding the potential impact of the collaboration on the companys future.

The partnership between Nanopore, a UK-based biotech firm, and Cepheid, a US diagnostics company, builds on a successful proof-of-concept study that combined the strengths of both companies technologies in infectious disease analysis. The innovative approach incorporates Cepheids cartridge-based GeneXpert system along with Oxford Nanopores sequencing platform, enabling a streamlined workflow for genomic testing.

Oxford Nanopore Technologies, which was established as a spin-off from the University of Oxford in 2005, has been at the forefront of nucleic acid sequencing technology. The companys devices utilize a unique method of sequencing, where long strands of DNA or RNA are analyzed by monitoring electrical currents as the nucleic acids pass through a protein nanopore. This technology has positioned Nanopore as a pioneer in the field.

The collaboration with Cepheid is particularly noteworthy, as the latter is known for its GeneXpert system, which is the most widely used polymerase chain reaction (PCR) diagnostic instrument globally. The goal of this partnership is to create a scalable and automated solution that simplifies nanopore sequencing workflows, making them accessible even to laboratories that may lack the expertise for in-house sequencing.

Initially, the partnership will focus on profiling bacterial and fungal pathogens directly from culture isolates. However, there are plans to expand this analysis to include testing from positive blood cultures, with long-term visions that may encompass further applications in infectious diseases, cancer research, and human genetics. The ultimate goal is to develop solutions that meet regulatory standards for clinical diagnostics.

Dr. Gordon Sanghera, CEO of Oxford Nanopore Technologies, expressed enthusiasm about the collaboration, stating, This collaboration represents an important step forward in delivering new and improved workflow options to better understand infectious diseases. He emphasized the significance of integrating their advanced data capabilities and accessible sequencing technology with Cepheid's established GeneXpert architecture, thereby laying the groundwork for future scaling into routine clinical use.

The announcement of this partnership comes on the heels of growing concerns regarding potential acquisition threats to Oxford Nanopore Technologies. Just last month, Dr. Sanghera acknowledged in an interview with the Financial Times that the company is now viewed as an attractive takeover target. Having gone public in 2021 amid surging demand for their sequencing devices during the COVID-19 pandemic, Nanopore was initially celebrated as a significant addition to the London stock market, particularly when many firms opted for the more lucrative American exchanges. However, as the demand for pandemic-related products diminished, the company has faced challenges, with shares plummeting by approximately 85% from their peak in 2021. Despite these challenges, Oxford Nanopore still maintains a market capitalization exceeding 1 billion, reflecting its established position in the biotech sector.