Oxford BioMedica


£462.9m market cap

700p 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 reported this year are evidence of strong operational momentum and ongoing validation of its business model. On the back of a £19.3m net raise in March, OXB is expanding its manufacturing capabilities to match increasing demand and continued growth of its platform (partnership) revenues. In the near term, revenue will continue to be driven by the Novartis partnership as Kymriah’s commercial roll out continues (royalties and manufacturing fees). OXB has several established development and manufacturing partnerships with Bioverativ, Sanofi & Orchard Therapeutics and continues to look to spin-out/out-license its internally developed, preclinical assets. Recently, partner Axovant announced positive but early interim results for AXO-Lenti-PD (in-licensed from OXB) in its ongoing SUNRISE-PD Phase II trial. As of 30 June, OXB had gross cash of £32.2m. We place our forecasts under review.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A 27.8 (7.6) (20.0) (29.35) N/A N/A
2017A 37.6 (1.3) (11.5) (14.14) N/A N/A
2018E 74.3 15.5 3.8 4.80 145.8 26.1
2019E 85.1 18.3 4.6 5.65 123.9 28.9
Last updated on 22/03/2019
Industry outlook

Cell- and gene-therapy is the focus of much industry attention as it can dramatically alter the outcomes of many diseases. The proprietary lentivector platform has demonstrated promise in many indications.

Last updated on 22/03/2019
Share price graph
Balance sheet
Forecast net debt (£m) 3.9
Forecast gearing ratio (%) 12
Price performance
Actual 9.4 7.5 18.6
Relative* 9.3 0.0 15.8
52-week high/low 1050.0p/526.0p
*% relative to local index
Key management
Dr. Lorenzo Tallarigo Chairman
John Dawson CEO
Stuart Paynter Chief Financial Officer

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