TIDMOXB
RNS Number : 9533V
Oxford Biomedica PLC
07 December 2023
Business Update
- Current contracted value signed in 2023 of GBP124 million, an
increase of 47% compared to GBP85 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.GBP30
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 b y c.GBP30 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 GBP124 million, an
increase of 47% compared to GBP85 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 GBP90 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 GBP10 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 EUR15 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 Conference
Oxford 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 Salvi
T: +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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