Oxford Biomedica reports first-half revenue growth

Oxford Biomedica, a prominent gene and cell therapy company, reported significant revenue growth alongside strategic advancements in its interim results on Monday.

The London-listed company recorded an 18% increase in total revenue for the six months ended 30 June, reaching £50.8m, compared to £43.1m in the first half of 2023.

Excluding the acquisition of OXB France and the loss of revenue from Homology Medicines, organic revenue growth surged 38%.

The board said that growth was driven by heightened manufacturing and commercial development activities, including the acquisition of ABL Europe in January, which contributed £5.7m in revenue from France.

Oxford Biomedica also saw increased revenue from lentiviral vector manufacturing, supported by a higher number of production batches and clients adopting its advanced Process C perfusion bioreactor technology.

However, the company experienced a decline in US revenue due to Homology Medicines ceasing its clinical operations, resulting in revenue of £0.2m in the first half of 2024 compared to £12.9m in the same period last year.

Operational efficiencies were realised through a 2023 reorganisation, reducing the operating EBITDA loss to £20.3m from £33.7m and the operating loss to £32.2m from £50.7m.

Oxford Biomedica said it maintained a strong financial position, with £81.4m in cash as of 30 June, and net cash of £41.7m, ensuring adequate capital to support its strategic plans.

Commercial key performance indicators showed sustained momentum, with the contracted value of client orders reaching £94m by 31 August, and a revenue backlog of £120m.

The company reiterated its financial guidance for 2024, projecting total revenue between £126m and £134m, and a three-year revenue compound annual growth rate (CAGR) of over 35% from 2023 to 2026.

Oxford Biomedica said it expected to achieve operating EBITDA margins exceeding 20% by the end of 2026, and aimed to reach EBITDA profitability by 2025.

The firm said it was continuing to execute its ‘One OXB’ growth strategy, integrating operations across the UK, US, and France.

Its client portfolio expanded to 37 clients and 48 programmes as of September, up from 24 clients and 41 programmes in September 2023.

OXB said it successfully onboarded multiple new clients, including seven early-stage adeno-associated virus (AAV) programmes in the US, and was now supporting late-stage activities for four clients preparing to launch CAR-T products, compared to one in the previous year.

Since the period ended, Dr Lucinda Crabtree was appointed as chief financial officer on 2 September, further strengthening Oxford Biomedica’s leadership team and supporting its ongoing transition.

“The first half of 2024 has been a period of significant progress for OXB as we continue to execute our multi-vector, multi-site 'One OXB' strategy,” said chief executive officer Dr Frank Mathias.

“The integration of our global network of sites is progressing well, delivering operational benefits that enhance our ability to meet diverse client needs and accelerate project timelines.

“We've experienced strong demand across our viral vector services, with particularly robust revenue growth in lentiviral vector manufacturing.”

Dr Mathias said the company was also seeing encouraging progress in AAV, including the signing of several new early stage programmes in the US.

“As we look ahead, we remain focused on further integrating our operations and growing our global portfolio of clients and projects across all stages of clinical development.

“I'm proud of the OXB team whose expertise and dedication are driving our achievements, enabling our clients to deliver life-changing therapies to patients and create long-term value for our shareholders.”

At 1053 BST, shares in Oxford Biomedica were up 0.61% at 359.18p.

Reporting by Josh White for Sharecast.com.