Business Update

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 . 

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Enquiries:        

Oxford Biomedica plc:

Sophia Bolhassan, VP, Corporate Affairs and IR – T: [phone] / E: [e-mail]

ICR Consilium:

Mary-Jane Elliott / Matthew Neal / Davide SalviT: [phone] / E: [e-mail]

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.