Oxford BioMedica

LN: OXB

£468.3m market cap

680p last close

Oxford BioMedica’s (OXB) LentiVector technology underpins the company’s strategy. OXB generates significant revenue from partners that utilise its technology, notably Novartis, Bioverativ, Orchard Therapeutics and Immune Design. OXB is in partnering discussions about internally developed assets.

Investment summary

Oxford BioMedica (OXB) is a global leader in lentiviral development and manufacturing. Maiden profits last year are evidence of strong operational momentum and ongoing validation of its business model. OXB is expanding its manufacturing facilities, more than doubling its current capacity by 2020 to match the increasing demand and to continue growing its platform revenues. In the near term, revenue will continue to be driven by the Novartis partnership for CAR-T Kymriah as the commercial roll-out continues. OXB has several established development and manufacturing partnerships including Sanofi & Orchard Therapeutics, and is continually looking to spin-out its internally developed assets. Recently, partner Axovant announced positive interim results for AXO-Lenti-PD (in-licensed from OXB) in the ongoing Phase II trial (SUNRISE-PD) which is now enrolling the next dose escalation cohort of patients. As of 31 December, OXB had gross cash of £32.2m. We place our forecasts under review.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 37.6 (1.3) (11.5) (14.14) N/A N/A
2018A 66.8 18.3 5.0 11.61 58.6 48.0
2019E N/A N/A N/A N/A N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 17/05/2019
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.

Last updated on 17/05/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (1.3) (2.5) (9.3)
Relative* 0.3 (4.2) (3.6)
52-week high/low 1050.0p/605.7p
*% relative to local index
Key management
Dr. Lorenzo Tallarigo Chairman
John Dawson CEO
Stuart Paynter CFO

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