Oxford Biomedica

LSE: OXB

Market Cap£365m

Last Close 379.5p

Oxford Biomedica’s LentiVector technology supports its internal initiatives and allows it to generate significant revenue from a multitude of partners. It is implementing significant capacity upgrades to improve efficiency and support more partnering/out-licensing agreements.

Investment summary

Oxford Biomedica (OXB) is a global leader in lentiviral development and manufacturing. With the formation of Oxford Biomedica Solutions in the US, OXB will offer a vector-agnostic platform to customers to continue growing its platform revenues. In the near term, revenues will continue to be driven by Novartis and AstraZeneca (AZN) as the rollout of Kymriah and the COVID-19 vaccine continues, as well as new partner programmes such as those from Bristol Myers Squibb (BMS). OXB has several established development and manufacturing partnerships including Novartis, Juno Therapeutics (BMS), Orchard Therapeutics, Boehringer Ingelheim and Beam Therapeutics. OXB also has a supply agreement with AZN for the large-scale commercial manufacture of the adenovirus vector-based COVID-19 vaccine Vaxzevria (AZD1222). Our forecasts are under review.

Y/E Dec	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (p)	P/E (x)	P/CF (x)
2020A	87.7	8.3	(2.5)	(2.7)	N/A	19.2
2021A	142.8	33.2	19.9	22.2	17.1	10.8
2022E	N/A	N/A	N/A	N/A	N/A	N/A
2023E	N/A	N/A	N/A	N/A	N/A	N/A

Industry outlook

Cell and gene therapy is the focus of much industry attention as it can dramatically alter the outcomes of many diseases. OXB’s proprietary LentiVector platform has demonstrated promise in many indications. Through OXB solutions, the company is expanding into the AAV market and announced a new partnership on 14 September 2022 with a US biotech.

Last updated on 30/11/2022