No order book trades until past 2pm. How very strange! |
3,900 buy 7,500 sell! |
What's happening no trades |
Well we finished up (slightly) on a Friday, I will take that!! News all looks positive to my untrained eye.
Marcus: 8453
I guess most of us on here are now associated with the EDL according to our leader! I don't trust him an inch and time will show just how painful a left wing government can be to the hard working, honest and true people of this country.
Enjoy your sabbatical Harry, see you on the other side!
Have a great weekend all! |
RBC
short-term target of 740p will do nicely. |
Just on the cash balance/burn rate, what we don't know is how much working capital is being soaked up in the order ramp up/acceleration (and ABL business). The cash balance at year end seemed to be bolstered by a reduction in working capital. |
Solid update.If the market was to apply something near average industry ratios,the OXB share price would double to around £7. |
There you go pharmaboy. #8451/2 I promised you, didn't I. |
takeiteasy,
I've written what I think for today now.
At some point we find out what Serum want the 10 year MSA deal for and who the recently signed commercial supply CAR-T deal is with. Both those would be huge news for OXB and the type of news the market is waiting for.
We know there is other stuff too, but I've had enough now for a while and so intend to have one of my irregular sabbaticals until the genuinely interesting news comes - which might not be before the interims.
Until then someone else can have a go at being the straight man for the thread comedian. |
so Harry lacklustre share price impact expected then ... |
My guess here (just a guess) was that they gave a full year presentation without mentioning a quarterly update because they didn't see the need.
Then when Phil and a few others asked where the KPI table was (which we still haven't seen) they felt obliged to put something out, then realised that they had told us a lot of it already.
I wouldn't worry about it. I believe RBC put our a positive flash note this morning to accompany the RNS, which reaffirmed their short-term target of 740p.
News of the CAR-T, Malaria or something similar will almost certainly get them there. When? Why couldn't they buy after the results? We will find out in time. Meanwhile, the snipers will do what they do best. |
why is the secrecy from the end customerbiopharma so vital - any ideas Harry |
I can't really see that a very similar report could not have been released some weeks ago which would have aligned better with their stated timing intentions. Were they hoping that something more substantial was imminent but it has not transpired?
Not that there is anything negative about it, just that the delay fuels speculation. |
 Mentioned previously, but the problem with being generous at the FY results (with post period figures / updates 4 months later) means that there wasn't an awful lot new there with which to excite the market. All the important stuff was as previously mentioned (re growth, projections and such simply reiterated).
They have told us before (a lot) that it was initially going to cost 10m Euros to turn ABL Europe into OXB Europe and that ABL were paying it, but that 10m Euro cost, even though it's paid by them, is still on our books at the end of the year.
Some cash has obviously gone somewhere. They mention staff (and we have seen the ads) but we also know from last year that the first part of turning OXB Boston from AAV into a LentiVector hub for the US cost us nearly 6m (which of course comes out of our cash). That has obviously continued and comes under the category of "it is what it is" as you have to spend money to earn money. If it eventually brings in one "good" Novartis style job there in that location, then that's the money back (and more).
Cash of £103.7m at 31 December 2023
£81 million cash as of 30 June 2024 (this includes the proceeds from a EUR 20 million (£16.9 million) investment by TSGH SAS).
Isn't that £39.6m over the first half or £1.5m per week? We of course know what that is about and we also know that they are profitmaking in H2, but the market will still look at that cash burn simply as a figure and look no further for the explanation.
I'm pretty convinced in myself now that they are keeping Yarnton beyond the lease expiry date this year. That's of course good and bad. Good that they have so much work they need to do it / bad that with the remaining part of OxBox not yet complete, we are paying a lease at Yarnton plus a load of duplicated costs which theoretically they shouldn't have needed to do. Something else under the category of "it is what it is".
They have reissued guidance and that's great and I'm at peace, but there was very little there which we either didn't know or couldn't have taken a good guess at.
We knew there was capex in France and the USA (Stuart told us) and we knew they were having to recruit (we have seen the ads). We knew they would turn to profitability in H2 but that H1 would weigh them down for the full year.
What I was hoping for was news of who the new multiple myeloma commercial CAR-T deal is with - especially as that's very likely the deal which tips us into profit for H2.
As Plutonian has pointed out, if it is a genuinely new company to OXB then it can only really be CARVYKTI (ciltacabtagene autoleucel), Janssen / J&J’s drug.
Tiny chance that it is the BMS drug Abecma (idecabtagene vicleucel) which they bought Celgene to get and OXB are saying Celgene is the new partner (rather than BMS who own them).
OXB almost certainly want to say (hence the clues from them) but have been told they can't. Those are the only 2 options though and either is worth a fortune to OXB. |
Agreed Gutterhead just solid organic growth only those expecting huge secret deals to be unveiled will be disappointed |
All looks positive to me.
Ambitious growth to profitability and confidently on track
I gave up short term guessing the market a long time ago. |
This feels very much in keeping with the new OXB management approach of not over promising and then delivering.
With a sceptical market after the past few years I think we can see the benefit of that.
No specific client updates, but they seem to be woven in there with the backlog and GMP reservations for 2025. Also the teaser that signing of new orders expected to accelerate in H2.
The investment in people had already been picked up on (although maybe not to the degree in the update given the cited drag on EBITDA?). This does feel like the gearing up in expectation of new orders (as has been flagged on here in terms of the potential clients driving those). |
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
Bit I liked the most - yes, you would have expected all this this, but strategically very reassuring to support their views on higher sales for 2025. It is one thing to promote a new strategy and another to deliver on it ... |
.....and opens down! |
all the regular contributors on holiday or simply stunned into silence :) |
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 backlog[1] (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. |
Considering it rained on St Swithins day I think we're holding on pretty well in Blighty. Am currently on hols in Aldeburgh looking to see if anybody is showing the film The Magnificent Seven. Want to make sure there isn't something about investment in the film that I missed first time around. On the question of gin I recommend a visit to the Shakespeare gin school just outside of Stratford. Hands on soup to nuts experience of producing gin and drinking loads of other people's!I admit it, I do have Berkshire Hathaway as well as OXB in my portfolio. What a strange animal. Never pays dividends and has truly unimaginable amounts of cash in its balance sheet. Just waiting for the next surge in the share price driven by share buybacks after the recent sales of Apple. Will it outperformOXB this year. Not in my portfolio! |
Don`t get too excited. Starmer`s Stasis will be stealing lots of profits from us soon enough.
On the plus side at least I have been informed by Keir that I am far right which is always good to know. |
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