Half Year
Trading Update and Notice of Interim Results
- Full year 2024 revenue and medium-term financial guidance
reiterated; underpinned by OXB’s growing market share in the
expanding cell and gene therapy market
- Contracted value of client orders
in the first seven months of the year reflective of strong demand
for CDMO services at approximately £80 million
- Revenue backlog stood at
approximately £113 million at 31 July 2024; high level of GMP suite
reservation for 2025 gives increased visibility and underpins
confidence in forecasts
- With increasing demand for
services, OXB to invest in talent to support future growth,
therefore low double-digit Operating EBITDA loss expected in 2024;
2025 EBITDA profitability outlook maintained due to continued cost
discipline and a measured approach to operational spend
Oxford, UK – 8 August
2024: Oxford Biomedica plc (LSE:OXB) (“Oxford
Biomedica”, "OXB" or “the Company”), a quality and innovation-led
cell and gene therapy CDMO, today provides a trading update for the
first half of 2024.
Additionally, the
Company announces that it will report its Interim Results for
the six months ended 30 June 2024 on Monday 23 September 2024.
Strong trading for H1 2024 and
reconfirmed financial guidance
OXB has continued to see strong momentum in 2024
with revenues for the first half expected to be approximately £50
million. As previously communicated, revenues are expected to be
second-half weighted, with contracted client orders providing a
high degree of visibility. The Company reiterates revenue guidance
for the full year within the £126 million to £134 million
range.
The first half of 2024 is expected to result in
a negative Operating EBITDA with a positive Operating EBITDA
expected in the second half, due to the effectiveness of the
Company’s strategic initiatives, including streamlining of
operations and expected strong revenue growth in the second half.
With an increase in late-stage client activity expected in 2025,
OXB will invest in building its technical and operational workforce
to support this demand.
With this investment in talent to support
revenue growth, the Company expects a low double-digit Operating
EBITDA loss for the full year 2024. As communicated at the full
year results, 2024 Operating EBITDA includes a mid to high single
digit loss from the recently acquired ABL Europe business (renamed
“Oxford Biomedica (France)”), which was fully funded by cash
received from Institut Mérieux prior to completion of the
acquisition.
OXB reiterates its medium-term financial
guidance of a three-year revenue CAGR in excess of 35% for
2023-2026, to be profitable on an Operating EBITDA level in 2025,
with Operating EBITDA margins in excess of 20% by the end of
2026.
OXB’s cash position remains strong with £81
million cash as of 30 June 2024. This includes the proceeds from a
EUR 20 million (£16.9 million) investment by TSGH SAS, a subsidiary
of Institut Mérieux SA, following the acquisition of Oxford
Biomedica (France).
Strong demand for CDMO
services
Demand for OXB’s CDMO services has remained
strong across all key viral vector types. The contracted value of
client orders signed during 2024 was approximately £80 million as
at 31 July 2024, in line with the Company’s expectations. Based on
current business development activities and OXB’s growing market
share, the cadence of signing orders is expected to increase in the
second half of the year. Revenue backlog1 (including France) stood
at approximately £113 million at 31 July 2024, compared to £104
million at 31 March 2024.
GMP suite reservation for 2025 has been high,
further bolstering confidence in future revenue delivery. Clients
transitioning from early stage manufacturing to late stage and
commercial activities have moved from a batch reservation model to
a binding forecast model, providing increased revenue
visibility.
Oxford Biomedica has made significant progress
with its new commercial, multi-site, multi-vector strategy. The
Company has successfully transferred its lentiviral vector
capabilities to its Bedford, Massachusetts site and commenced its
first lentiviral vector programme in the US. Plans are underway to
enable the Company’s French sites to provide similar lentiviral
vector services by the end of 2024.
Dr. Frank Mathias, Chief Executive
Officer of Oxford Biomedica, commented: "Oxford Biomedica
has seen continued strong momentum in 2024, reinforcing our
position as a world-leading cell and gene therapy CDMO. Our
multi-site, multi-vector strategy is gaining traction, demonstrated
by our strong revenue backlog and growing order book. These strong
KPIs and high GMP suite reservation for 2025 provide us with
confidence in our growth trajectory and our ability to capitalise
on the growing opportunities in the cell and gene therapy
market.”
Notice of Interim Results
OXB expects to report its Interim Results for
the six months ended 30 June 2024 on Monday 23 September 2024. A
briefing for investors and analysts will take place at 13:00 BST /
08:00 ET at One Moorgate Place, London, EC2R 6EA.
-Ends-
Enquiries:
Oxford Biomedica
plc:
Sophia Bolhassan, Head of Investor
Relations – T: +44 (0) 1865 509 737 / E: ir@oxb.com
ICR Consilium:T: +44
(0)20 3709 5700 / E: oxfordbiomedica@icrhealthcare.com
Mary-Jane Elliott / Angela Gray / Davide
Salvi
About Oxford Biomedica
Oxford Biomedica (LSE:
OXB) is a quality and innovation-led contract development and
manufacturing organisation (CDMO) in cell and gene therapy 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, OXB has more than 25 years of
experience in viral vectors; the driving force behind the majority
of cell and gene therapies. OXB 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), adenovirus, and other
viral vector types. 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.
OXB offers a vast
number of unique technologies for viral vector manufacturing,
including a 4th generation lentiviral vector system (the
TetravectaTM system), dual plasmid system for AAV production,
suspension and perfusion process using process enhancers and stable
producer and packaging cell lines.
Oxford Biomedica, a
FTSE4Good constituent, is headquartered in Oxford, UK. It has
bioprocessing and manufacturing facilities across Oxfordshire, UK,
Lyon and Strasbourg, France, and near Boston, MA, US. Learn more
at www.oxb.com, and follow us
on LinkedIn and YouTube.
1 Revenue backlog represents ordered CDMO
revenues available to earn. The value of customer orders included
in revenue backlog only includes the value of work for which the
customer has signed a financial commitment for OXB to undertake,
whereby any changes to agreed values will be subject to either
change orders or cancellation fees.
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