DNA helix

One of the first things visitors may notice when they arrive at the headquarters of Oxford Nanopore are the murals that adorn the common spaces. On one wall, there is a picture of the group Nirvana. On another, The Ramones. Blondie features on a third. When I asked my host whether the founders were music fans, I was told, sure, but the important point was that each band depicted had not only challenged prior convention but also invented something new and enduring. It is this mindset that underpins the philosophy of Oxford Nanopore. For your author, it was a privilege to recently spend an hour with the company’s co-founder, Gordon Sanghera, a luminary in the world of life sciences and innovation. Our wide-ranging conversation invoked both Darwin and Copernicus among many other topics.

For those unaware, Oxford Nanopore was founded in 2005, with the broad ambition of “anyone being able to analyse anything anywhere.” The business listed in 2021 and is currently worth over £2bn. While many would consider what Nanopore has already achieved a marked success, the impression formed when talking with Gordon is that the business is still at a very early stage of its journey. For the team at Nanopore, there is “growing momentum” behind its approach to how DNA is sequenced (a topic we first discussed in 2012). Put simply, the business has developed a proprietary system that allows for greater levels of sequencing accuracy to be achieved at faster speeds than might be possible using more conventional systems such as those developed by industry leader, Illumina. Gordon likened the industry’s incumbents to “flat-earthers”, seeing the world only “in black and white.” By contrast, Nanopore is “bringing colour” to DNA sequencing; an approach it believes will eventually become the orthodoxy (in industry parlance, the Nanopore technique utilises ‘long reads’ on DNA versus the historic preference for ‘short reads’).

Oxford Nanopore may well have a chance at success simply because it has always taken a different approach. Gordon arrived at his epiphany through work originally done at the time of his PhD, bringing electronics (and data) to the world of biology. He is also acutely conscious of the importance of innovation. At Nanopore, those responsible for research and development are quite explicitly separated from those involved in the manufacturing of the products, allowing the business to focus on what matters most – namely, innovation. There is also a distinct focus on creating a platform rather than applications for its platform, a key lesson absorbed from how Apple ended up becoming one of the world’s most successful companies.

What lessons can be learned from a Future Trends perspective? We have consistently advocated the Darwinian principle that the most successful businesses will be those that are most responsive to change (as opposed either to the strongest or the most intelligent, in Darwin’s summation). Oxford Nanopore embodies this approach – “we have to keep innovating through disrupting our own business”, per Gordon. With fewer than 1% of all living things on the planet – not just humans, but animals and plants too – sequenced, the runway ahead for the business is significant. As costs continue to fall, the opportunity should only increase.

23 May 2023

The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.

Click here to view all Blog posts

Alex Gunz, Fund Manager

Disclaimers

The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital LLP believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital LLP, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital LLP is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital LLP disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document. 

The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital LLP’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital LLP’s prior written consent. 

Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
email [email protected] 

Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority 

Heptagon Capital Limited is licenced to conduct investment services by the Malta Financial Services Authority.

Related Insights

Season 6, Post 13: Winds of change in Spain
  • Featured Insights

Season 6, Post 13: Winds of change in Spain

Season 6, Post 12: California Dreaming: Notes from the Valley
  • Featured Insights

Season 6, Post 12: California Dreaming: Notes from the Valley

Season 6, Post 11: “The job is far from done”
  • Featured Insights

Season 6, Post 11: “The job is far from done”

GET THE UPDATES

Sign up to our monthly email newsletter for the latest fund updates, webcasts and insights.