Oxford BioMedica has raised its earnings guidance for the next year, as it signs up new clients for their cell and gene therapies business. Shares have risen as much as 20%.
The London-listed firm, which manufactured the Oxford/AstraZeneca vaccination, expects to break even in operating earnings before tax, depreciation, and amortization by the end 2024 rather than 2025, as it had previously predicted.
Oxford BioMedica announced on Wednesday that the company had signed 50% more clients since 2022. This has created a pipeline for manufacturing complex therapies to treat cancers and rare diseases. The company expects to grow at a rate of 30 percent per year over the next three, with margins exceeding 20 percent by 2026. The company has achieved this despite disappointing sales of its Oxford/AstraZeneca Covid-19 vaccination.
Frank Mathias said that he is focused on “sustainable growth” and the “path to profitability”.
He said: “With the cell-and-gene therapy industry at a turning point, I think that we are at the right place at the right moment, and that our highly-skilled workforce and cutting-edge technology will help us succeed.”
The share price of Oxford BioMedica rose by up to 20 percent on Wednesday, reaching 289.50 pence.
Oxford BioMedica’s total revenue in the first half of the year fell by 33 percent to £43.1mn, a significant drop from £62.4mn, the consensus forecast. The AstraZeneca vaccination is far behind the mRNA competitors from BioNTech/Pfizer, Moderna and Moderna.
Oxford BioMedica’s operating loss in the first half was £51mn compared to £19mn the previous year. The company is aiming to save £30mn annually by January 2024. Mathias has said that it is adapting its processes and structure to be more efficient.
ABL Europe is a subsidiary owned by Institut Merieux, a French company, and has manufacturing facilities in Lyon, Strasbourg, and other parts of France. The company also proposes to expand into the EU. As part of a potential deal worth approximately EUR35mn Institut Merieux will inject €10mn in cash to ABL Europe prior to completion and EUR20mn after, in exchange of a 10% stake in Oxford BioMedica.
Mathias stated that the acquisition would “give Oxford BioMedica a footprint in the EU” and allow it to better meet the growing demand of its clients.
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