Half-year trading update and interim results announcement
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Revenue and medium-term financial guidance for full year 2024 reaffirmed; underpinned by OXB’s growing market share in the expanding cell and gene therapy market
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The contracted value of customer orders in the first seven months of the year, at around £80 million, reflects strong demand for CDMO services
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The revenue shortfall was around £113 million as of 31 July 2024; a high level of reservation for GMP suites for 2025 provides greater transparency and underpins confidence in the forecasts
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Given the increasing demand for services, OXB will invest in talent to support future growth. As a result, a low double-digit operating EBITDA loss is expected for 2024. EBITDA profitability guidance for 2025 is maintained due to continued cost discipline and a measured approach to operating expenses.
Oxford, UK – August 8, 2024: Oxford Biomedica plc (LSE:OXB) (“Oxford Biomedica”, “OXB” or “the Company”), a cell and gene therapy CDMO focused on quality and innovation, today provides a trading update for the first half of 2024.
In addition, the Company announces that it will announce its interim results for the six months ended June 30, 2024 on Monday, September 23, 2024.
Strong business in the first half of 2024 and renewed confirmation of the financial forecast
OXB continues to see strong momentum in 2024. Revenue for the first half is expected to be around £50 million. As previously communicated, revenue is expected to be driven towards the second half, with contracted customer orders providing a high level of visibility. The company reiterates its full-year revenue guidance in the range of £126 million to £134 million.
Operating EBITDA is expected to be negative in the first half of 2024, and operating EBITDA is expected to be positive in the second half, due to the effectiveness of the Company’s strategic initiatives, including streamlining operations and strong revenue growth expected in the second half. With late-stage customer activity expected to increase in 2025, OXB will invest in building its technical and operational workforce to meet 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 in the annual results announcement, the 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 for the three-year revenue development from 2023 to 2026 with a compound annual growth rate (CAGR) of over 35% to achieve profitable operating EBITDA in 2025 and operating EBITDA margins of over 20% by the end of 2026.
OXB’s liquidity position remains strong at £81 million as of June 30, 2024. This includes the proceeds from a €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 major viral vector types. The contracted value of customer orders signed in 2024 was approximately £80 million as at 31 July 2024, in line with the Company’s expectations. Due to current business development activities and OXB’s growing market share, the frequency of order signings is expected to increase in the second half of the year. Revenue Backlog1 (including France) was approximately £113 million at 31 July 2024, compared to £104 million at 31 March 2024.
GMP Suite reservation for 2025 was high, further increasing confidence in future revenue. Customers moving from early stage production to late stage production and commercial activities have moved from a batch reservation model to a binding forecast model, providing better 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 launched its first lentiviral vector program in the United States. Plans are underway to enable the company’s French sites to offer similar lentiviral vector services by the end of 2024.
Dr. Frank Mathias, Chief Executive Officer of Oxford Biomedica, commented: “Oxford Biomedica has experienced continued strong momentum in 2024, reinforcing our position as the world’s leading cell and gene therapy CDMO. Our multi-site, multi-vector strategy is gaining traction, as evidenced by our strong revenue backlog and growing backlog. These strong KPIs and the high GMP suite reservation for 2025 give us confidence in our growth trajectory and ability to capitalize on the growing opportunities in the cell and gene therapy market.”
Announcement of interim results
OXB expects to announce its interim results for the six months ended 30 June 2024 on Monday, 23 September 2024. An investor and analyst meeting will be held at 13:00 BST (08:00 ET) at One Moorgate Place, London, EC2R 6EA.
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Requests:
Oxford Biomedica plc:
Sophia Bolhassan, Head of Investor Relations – T: +44 (0) 1865 509 737 / E: [email protected]
ICR Council:
T: +44 (0)20 3709 5700 / E: [email protected]
Mary Jane Elliott / Angela Gray / Davide Salvi
About Oxford Biomedica
Oxford Biomedica (LSE: OXB) is a quality and innovation-focused cell and gene therapy contract development and manufacturing organization (CDMO) with a mission to enable its customers to deliver life-changing therapies to patients around the world.
As one of the original pioneers in cell and gene therapy, OXB has over 25 years of experience with viral vectors; they are the driving force behind most cell and gene therapies. OXB works with some of the world’s most innovative pharmaceutical and biotechnology companies, providing expertise in viral vector development and manufacturing for lentiviruses, adeno-associated viruses (AAV), adenoviruses and other viral vector types. Oxford Biomedica’s world-class capabilities span from early development to commercialization. These capabilities are supported by robust quality assurance systems, analytical methods and extensive regulatory expertise.
OXB offers a variety of unique technologies for the production of viral vectors, including a 4th generation lentiviral vector system (TetravectaTM System), dual plasmid system for AAV production, suspension and perfusion process using process enhancers and stable producer and packaging cell lines.
Oxford Biomedica, a FTSE4Good member, is headquartered in Oxford, UK. The company has bioprocessing and manufacturing facilities in Oxfordshire, UK, Lyon and Strasbourg, France, and near Boston, MA, USA. For more information, visit www.oxb.com, and follow us on LinkedIn and YouTube.
1 The backlog represents the ordered CDMO revenue that can be achieved. The value of customer orders in backlog includes only the value of work for which the customer has made a financial commitment to OXB, with any changes to the agreed values subject to either change orders or cancellation fees.
