Oxford Biomedica still expecting small loss after solid first half

Cell and gene therapy contract development and manufacturing organisation Oxford Biomedica reported a strong first-half trading performance in an update on Thursday, with revenue expected to reach £50m.

The London-listed company reiterated its full-year revenue guidance of between £126m and £134m, underpinned by a growing market share in the expanding cell and gene therapy sector.

As of 31 July, the contracted value of client orders signed during the year stood at £80m, reflecting robust demand for Oxford Biomedica's CDMO services.

The firm said the revenue backlog was £113m, further bolstered by high levels of GMP suite reservations for 2025, providing the company with increased confidence in meeting its financial forecasts.

Despite the positive revenue outlook, Oxford Biomedica said it still expected to report a low double-digit operating EBITDA loss for 2024, due to ongoing investments in talent and resources to support future growth.

The company said it remained committed to its strategic initiatives aimed at streamlining operations, and anticipated a positive operating EBITDA in the second half of the year.

Its medium-term financial outlook remained strong, with a projected three-year revenue compound annual growth rate (CAGR) exceeding 35% from 2023 to 2026 and operating EBITDA margins surpassing 20% by the end of 2026.

Oxford Biomedica said its cash position remained robust, with £81m on hand as of 30 June, including funds from a recent €20m investment by TSGH - a subsidiary of Institut Mérieux SA, following the acquisition of Oxford Biomedica France.

The company said it made significant progress with its multi-site, multi-vector strategy, expanding its capabilities across key locations.

Notably, it had successfully transferred its lentiviral vector capabilities to its Bedford, Massachusetts site, where it had started its first lentiviral vector program in the US

Additionally, plans were underway to enable its French sites to offer similar services by the end of 2024.

“Oxford Biomedica has seen continued strong momentum in 2024, reinforcing our position as a world-leading cell and gene therapy CDMO,” said chief executive officer Dr Frank Mathias.

“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.”

Oxford Biomedica said it expected to report its interim results for the six months ended 30 June on 23 September.

At 1208 BST, shares in Oxford Biomedica were down 0.14% at 353.5p.

Reporting by Josh White for Sharecast.com.