Oxford Biomedica

LN: OXB

£518.8m market cap

675p 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) has announced the expansion of its commercial supply agreement with Novartis by five years. While expected, this removes any uncertainty around the future of the partnership and is a validation of OXB’s investment in new manufacturing facilities. Novartis is now committed to paying OXB a minimum of $75m (for vector batches) in manufacturing revenue over the five-year extension. Additionally, OXB will be paid a mid-single digit £m facility reservation fee. As part of this, OXB will dedicate some of its new 7,800m2 manufacturing facility (OxBox) to Novartis while also ensuring that at least two of its GMP facilities are capable of commercial supply, essentially ensuring a dual-sourced supply if the need arose. We value OXB at £692m vs £673m previously.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 37.6 (2.6) (13.1) (16.7) N/A 140.3
2018A 66.8 13.5 0.3 4.3 157.0 34.2
2019E 76.9 5.3 (7.9) (7.3) N/A N/A
2020E 89.8 10.9 2.9 7.4 91.2 65.0
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 20/01/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (£m) 8.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.5 27.4 7.0
Relative* 2.6 18.7 (3.6)
52-week high/low 771.0p/496.5p
*% relative to local index
Key management
Dr. Lorenzo Tallarigo Chairman
John Dawson CEO
Stuart Paynter CFO

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