Business
Update
- Current contracted value
signed in 2023 of £124 million, an increase of 47% compared to £85
million in the year ending 31 December 2022 (excluding COVID-19
vaccine manufacturing)
- On track to achieve 2023
guidance provided at the Interim Results and
reiteration of medium term guidance; growth supported by new orders
recently signed across lentivirus, adeno-associated virus (AAV) and
adenoviral vectors
- Progress towards
multi-vector multi-site model with transfer of lentiviral vector
capabilities to Bedford, Massachusetts site and acquisition of ABL
Europe
- Recruitment of UK and US
Site Heads with extensive CDMO experience to support move to
site-based structure and strategic shift to a pure-play
CDMO
- Significant progress in
streamlining of operations to become a pure-play CDMO resulting in
annualised cost-savings of c.£30 million
Oxford, UK – 7 December
2023: Oxford Biomedica plc (LSE:OXB) (“Oxford
Biomedica” or “the Company”), a quality and innovation-led cell and
gene therapy CDMO, today announces a business update for the year
ending 31 December 2023.
Becoming a pure-play CDMO in cell and
gene therapy
Oxford Biomedica has made significant progress
in its streamlining of operations to become a pure-play quality and
innovation-led global cell and gene therapy CDMO. The Company has
concluded the reorganisation of its workforce, which, among other
measures to increase efficiencies, includes a more streamlined
structure across the UK and US. This organisational restructuring
is tailored to boost efficiency and client-centricity, aligning
roles and operations with the specific requirements of a pure-play
CDMO. These strategic changes will result in a reduction of the
ongoing cost base from 1 January 2024 by c.£30 million on an
annualised basis compared to 2023.
Positive momentum in commercial
activity
The Company continues to demonstrate robust
business development activity, a testament to its strong position
in the viral vector space. This year, Oxford Biomedica has more
than doubled the number of contracts and client orders signed
compared to the previous year, reflecting a growing demand for its
services from a diverse array of pharmaceutical and biotech
clients. Current contracted value of client orders
signed in 2023 is £124 million, an increase of 47% compared to £85
million in the year ending 31 December 2022 (excluding COVID-19
vaccine manufacturing). Furthermore, the pipeline of opportunities
continues to progress as anticipated, not only in lentivirus, AAV,
and adenoviral vectors but also in other vector types. Work with
these additional vector types now account for more than 10% of the
weighted pipeline.
Current trading and medium term
guidance
In line with guidance provided at the Interim
Results in September, the Company is on track to deliver revenues
for the year ending 31 December 2023 of approximately £90
million.
Also in line with guidance provided at the
Interim Results, Operating EBITDA loss for the second half of 2023
is on track to be approximately £10 million better than the first
half.
The Company also remains on track to deliver
broadly breakeven Operating EBITDA in 2024, bolstered by positive
momentum in business development activities and new orders recently
secured across lentivirus, adenoviral vectors and AAV, with both
new and existing clients. This momentum will further support the
Company’s medium term guidance of a three-year revenue CAGR in
excess of 30%, and at least a doubling of revenues by the end of
2026.
The above guidance excludes the financial impact
of the acquisition of ABL Europe SAS (“ABL Europe”). The Company
will provide further financial guidance after the completion of
this transaction, currently expected in the first quarter of
2024.
Multi viral vector CDMO capabilities
across multiple sites
Oxford Biomedica has achieved significant
progress in transferring its lentiviral vector capabilities to its
Bedford, Massachusetts site. The transfer of its 5L process is
already underway. This will be followed shortly by the introduction
of 7L scale and 50L pilot scale capabilities. The material produced
from these pilot scale batches will be instrumental in supporting
assay qualification for pre-clinical activities as well as for IND
(Investigational New Drug) and IMPD (Investigational Medicinal
Product Dossier) enabling studies.
In October 2023, Oxford Biomedica welcomed
Thierry Cournez, formerly of Merck Life Science, as Chief Operating
Officer & Site Head of UK Operations, to lead the integration
of Oxford Biomedica’s sites and take direct responsibility for the
Company’s UK operations in Oxford. This appointment follows the
earlier recruitment of Mark Caswell who brings extensive CDMO
experience from his previous roles at Rentschler Biopharma and
Lonza. In July 2023, he took on the role of Site Head of US
Operations. The shift to a site-based structure allows the Company
to maximise efficiencies as well as be better adapted to serve
client’s needs.
On 4 December 2023, Oxford Biomedica announced
it had entered into a sale and purchase agreement with Institut
Mérieux for the acquisition of ABL Europe for a consideration of
€15 million. This will support the future growth of all viral
vector segments and allow the Company to expand its international
footprint into the European Union with sites in Lyon and
Strasbourg, France.
Completion of the
transaction is currently expected to take place in the first
quarter of 2024 subject to the satisfaction and/or waiver of
outstanding conditions, including obtaining the necessary
regulatory approvals.
Dr. Frank Mathias, Chief Executive
Officer of Oxford Biomedica, commented: “Oxford Biomedica
is successfully delivering on its strategic vision to become a
pure-play CDMO. The streamlining of our operations has involved a
strategic shift towards a CDMO mindset and we are now focused on
being entirely client-centric. We remain encouraged by our increase
in client orders, which have doubled since 2022 and we are now
well-positioned to drive robust revenue growth while targeting
broadly breakeven Operating EBITDA by the end of 2024.”
Attendance at
the Annual J.P. Morgan Healthcare ConferenceOxford
Biomedica is attending the Annual J.P. Morgan Healthcare
Conference. Frank Mathias, Chief Executive Officer, will give
a presentation, which will be available on the Oxford Biomedica
website after the conference at
www.oxb.com/investors/results-reports-presentations-webcasts
.
-Ends-
Enquiries:
Oxford Biomedica plc:
Sophia Bolhassan, VP, Corporate Affairs and IR –
T: +44 (0) 7394 562 425 / E: ir@oxb.com
ICR Consilium:
Mary-Jane Elliott / Matthew Neal / Davide
SalviT: +44 (0)20 3709 5700 / E:
oxfordbiomedica@consilium-comms.com
About Oxford Biomedica
Oxford Biomedica (LSE: OXB) is a quality and
innovation-led cell and gene therapy CDMO with a mission to enable
its clients to deliver life changing therapies to patients around
the world.
One of the original pioneers in cell and gene
therapy, the Company has more than 25 years of experience in viral
vectors; the driving force behind the majority of gene therapies.
The Company collaborates with some of the world’s most innovative
pharmaceutical and biotechnology companies, providing viral vector
development and manufacturing expertise in lentivirus,
adeno-associated virus (AAV) and adenoviral vectors. Oxford
Biomedica’s world-class capabilities span from early-stage
development to commercialisation. These capabilities are supported
by robust quality-assurance systems, analytical methods and depth
of regulatory expertise.
Oxford Biomedica, a FTSE4Good constituent, is
headquartered in Oxford, UK. It has locations across Oxfordshire,
UK and near Boston, MA, US. Learn more at www.oxb.com, and follow
us on LinkedIn and YouTube.
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