Further deals anticipated in 2020

Oxford Biomedica 18 May 2020 Update
Download PDF

Oxford Biomedica

Further deals anticipated in 2020

FY19 results

Pharma & biotech

18 May 2020

Price

774p

Market cap

£600m

$:£0.82; €:£0.91; $:€0.91

Net cash (£m) at 30 April 2020

17.2

Shares in issue

76.9m

Free float

69%

Code

OXB

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

12.3

17.8

12.2

Rel (local)

8.8

52.8

40.6

52-week high/low

774p

400p

Business description

Oxford Biomedica’s (OXB) LentiVector® technology underpins the company’s strategy. OXB generates significant revenue from partners that use its technology, notably Novartis, Juno Therapeutics (BMS), Bioverativ (Sanofi), Orchard Therapeutics, Axovant and Santen. OXB is implementing significant capacity upgrades to enable more partnering/out-licensing agreements.

Next events

ChAdOx1 nCov-19 Phase I initial data

Q320

AXO-Lenti-PD six-month efficacy data

Q420

New partnership and licensing deals

2020

Analysts

Dr Susie Jana

+44 (0)20 3077 5700

Dr John Priestner

+44 (0)20 3077 5700

Oxford Biomedica is a research client of Edison Investment Research Limited

Oxford Biomedica’s (OXB) FY19 results highlight strong operational momentum despite capacity constraints. OXB is investing for future growth and its 84,000 sq ft state-of-the-art bioprocessing facility OxBox is on track to produce commercial grade batches in Q220. Deals made include expansion of its commercial supply agreement with Novartis by five years and R&D partnerships with Santen and Microsoft, followed post period with the BMS/Juno licence and supply agreement. We expect further platform deals to be announced in 2020, as OXB exploits its position as the only FDA-approved, commercial-scale lentiviral vector (LVV) manufacturer in the US. In the long term, much value resides in OXB’s ability to develop and monetise its own gene therapies, an out-licence deal is also on the cards and OXB plans to move several proprietary gene therapy assets into the clinic in the next 12 to 18 months.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

12/18

66.8

0.3

4.3

0.0

N/A

N/A

12/19

64.1

(16.8)

(16.4)

0.0

N/A

N/A

12/20e

76.5

(7.9)

(3.7)

0.0

N/A

N/A

12/21e

104.4

0.8

0.9

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Partnerships diversify revenue streams

While total revenues declined 4% due to lower licence payments, these are by nature volatile from year to year. More importantly, operational revenues from bioprocessing and commercial development grew 17% to £47.3m. OXB has significantly diversified its revenue streams and expects to sign two further deals this year – discussions with multiple potential partners are ongoing. In FY19 OXB posted an operating loss of £14.5m as expenses increased to support the increased headcount and OxBox. We continue to expect ongoing growth in the top line, driven in the near term by Kymriah (Novartis), the progression of Sanofi/Bioverativ’s haemophilia products to the clinic and the rapid advancement of its partnered products with Orchard and Axovant.

Debt removed, investment is key

Novo Holdings’ equity investment (£53.5m) in May has enabled OXB to fully repay its costly debt facility, leading to a debt-free balance sheet, and boosted cash for developing its platform and own portfolio of assets. OXB is in a growth phase and ongoing investments are necessary to ensure future growth. We expect OXB to remain at break-even or positive net income in the near term. We also expect partnering deals to be announced that will strengthen OXB’s balance sheet further.

Valuation: £709m (£9.22 per share)

Our revised valuation is £709m from £718m (£9.34/share). We have updated for FY19 results, removing the Orchard stake. We have made minor adjustments to OTL-101 and 201. Our sales forecasts are unchanged and our core drivers remain OXB’s partnerships, which represent £5.98/share of our total value. We include OXB’s reported cash and cash equivalents of £17.2m (at 30 April 2020).

Multiple partners enhance revenue streams

OXB is the only FDA-approved, commercial-scale, GMP-approved LVV manufacturer in the US. Progression during 2019 and post period has validated OXB’s position as a leader in its field, as well as its decision to invest heavily in the OxBox bioprocessing facility and, more recently, the Windrush Innovation Centre. We continue to expect ongoing growth in the top line, driven in the near term by Kymriah (Novartis), the commercial development fees related to Juno and the additional other assets covered under the Novartis deal, the progression of Sanofi’s (previously Bioverativ) haemophilia products to the clinic (via development milestone payments) and the rapid advancement of OXB’s partnered products with Orchard (notably OTL-201) and Axovant (six-month efficacy data expected in Q420). Additionally, early-stage collaborations with Santen and Boehringer Ingelheim/UK Cystic Fibrosis Gene Therapy Consortium will continue to contribute a growing share of the top line as OXB undertakes development work. OXB expects to sign two further deals this year, which would represent upside to our financial forecasts and valuation.

Kymriah uplift in growth trajectory in Q419

Kymriah (a CD19-targeting CAR-T that is approved for pALL and DLBCL) sales were initially below market expectations (due to a deepening competitive landscape and Novartis patient cell processing issues). However, sales continue to demonstrate strong quarter-on-quarter growth towards end 2019 (Q120: $93m, Q419: $96m, Q319: $79m and Q219: $58m). We note that Q120 sales were flat on Q419 related to the impact of COVID-19 on commercial flights used in the Kymriah supply chain (Novartis has circumvented this by alternative flight routes). Kymriah is now approved for reimbursement in over 20 countries (for at least one indication) including the US, Canada, Japan, Australia and several counties in Europe, with more than 130 qualified centres able to offer the treatment, and we expect OXB to benefit from increasing royalty and manufacturing revenue. In April 2020, the FDA granted regenerative medicine advanced therapy (RMAT) designation to Kymriah for relapsed or refractory follicular lymphoma, Novartis expects to file for this indication in 2021. Kymriah consensus sales are estimated at more than $1.2bn by 2025 (source: GlobalData Pharma/OXB presentations).

Novartis committed to CAR-T as programmes expand

Following the 2017 commercial launch of partner Novartis’s Kymriah, OXB has successfully expanded its commercial supply agreement with Novartis by five years. OXB is now working on six different LVVs for use in Novartis’s CAR-T products. Although OXB has not disclosed the targets, we assume (based on Novartis’s recent R&D day) they are focused on CD19, BCMA, CD22, IL3RA and EGFRvIII. We note that the $75m minimum revenue announced in the expanded commercial partnership is for vector batches only. As a result, OXB will benefit separately from development revenue for these new assets, which could provide substantial upside to our current assumptions. OXB will dedicate some of its new 84,000 sq ft 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 arises.

BMS/Juno another major gene therapy player added to the list

The post-period licence and clinical supply agreement (LSA) with Juno Therapeutics (part of the BMS group) grants Juno a non-exclusive licence to OXB’s LentiVector platform for its application in a number of novel CAR-T and TCR-T programmes. This is a significant deal, albeit early stage, in terms of multiple programmes and further diversifies OXB’s revenue streams. The deal covers four products (targets are undisclosed by OXB) and, based on Juno’s disclosed clinical pipeline, we assume it covers early clinical-stage assets as well as preclinical ones. Deal terms include a $10m upfront payment from Juno, up to $86m in potential development and regulatory milestones (spread across four assets and multiple indications), up to $131m in potential sales-related milestones and an undisclosed royalty on net sales of products using its LentiVector platform. As these assets move towards approval, commercial manufacturing supply provides further upside. In the near term the key revenues will be from commercial development which will move to batch revenues.

Santen minimal risk with upside opportunity

In June 2019, OXB signed an R&D collaboration, in addition to an option and licence agreement with Santen Pharmaceutical, a publicly listed, leading Japanese ophthalmic pharmaceutical company. The agreement covers the development of gene therapy vectors for an undisclosed rare inherited retinal disorder. Under the terms of the initial agreement, OXB will provide preclinical proof of concept with its lentiviral vector platform. OXB is entitled to an undisclosed milestone payment on Santen exercising the option to the LentiVector platform, as well as development milestones and up to a 10% royalty on net sales. Santen has worldwide commercial rights to the programme, while OXB retains an option to co-fund and participate in the development and commercialisation in the US and Europe. The structure of this deal is interesting as it is of minimal risk at this early stage but provides the opportunity to share in the upside if this gene therapy has commercial viability in the US/EU.

AXO-Lenti-PD hitting development milestones

Partner Axovant has accelerated AXO-Lenti-PD into the clinic, with a Phase I/II dose-escalation study (SUNRISE-PD) in advanced PD patients ongoing. Following positive early data in the lowest dose cohort (n=2), a second dose cohort is enrolling (OXB received a $15m milestone payment on dosing of the first patient). In January 2020, Axovant reported 12-month post-dosing data, which demonstrated an average 22-point change from baseline (represents a 37% improvement) in motor function as assessed by the UPDRS Part III ‘OFF’ score. These data are encouraging (although restricted to two patients) as they expand from the 17-point change from baseline (29% improvement) seen at six months on the same scale. Six-month data from the first and second cohort are expected in Q420. Furthermore, Axovant expects to start the sham-controlled portion of the study by year end. OXB is eligible for remaining milestones of up to c $800m ($40m left for development) and 7–10% tiered royalties on any sales.

Debt removed, investing for future growth in OxBox

Novo Holdings’ equity investment in May of £53.5m (for 10.1% of the outstanding share capital) has enabled OXB to fully repay the £43.6m debt facility with Oaktree Capital Management. At end April 2020, OXB reported cash and cash equivalents of £17.2m, we believe the balance sheet will be strengthened further by signing deals (clinical supply agreements or out-licensing of its pipeline candidates). We expect OXB to operate close to break-even during 2020 as it continues to invest in capacity (finalising OxBox and the Windrush Innovation Centre – the latter will focus on innovation and technological advances to support both the product pipeline and LentiVector platform). At 31 December 2019, the employee count had risen to 554 from 432 at the end of 2018.

Innovation at the heart of its platform and pipeline

OXB continues to innovate within its platform capabilities and its proprietary gene therapy R&D pipeline. It has made advances in technology in its platform, as it drives the industrialisation of vectors towards better yield and lower cost of production, OXB’s successful transition to Process B bioreactor vector production for Kymriah (a tenfold yield and tenfold efficiency over Process A) in H119 demonstrated its expertise in vector manufacturing. Moving to Process B bioreactor vector production also enabled deals such as Bioverativ (Sanofi), given the large number of vectors needed for the treatment of conditions such as haemophilia (liver). To move further along the efficiency pathways, the group has continued to focus on developing, refining and enhancing its technology through advances such as its next-generation Transgene Repression in Vector Production (TRiP) manufacturing system and LentiStable cell lines that provide improved vector yields and scalable, cost-effective manufacturing. Additionally, in an effort to ensure it remains at the cutting edge, in March 2019 OXB announced a collaboration with Microsoft Research to utilise its machine learning technology to develop insights into OXB’s processes. The aim of the partnership is to improve the yield and quality of OXB’s next-generation gene therapy vectors. The partnership will initially run for two years, but can be extended by either party. Exhibit 1 highlights the ongoing in-house innovation initiatives to generate new intellectual property that can be licensable and utilised in in-house programmes to ultimately drive increasing value.

Exhibit 1: OXB innovation wheel

Source: OXB corporate presentation

Preclinical candidates poised to move to clinic in 12–18 months

OXB has completed a review of its internal pipeline; work on OXB-201 (wet age-related macular degeneration (AMD)) and OXB-202 (corneal graft rejection) have been discontinued. OXB-203 takes over from its predecessor OXB-201 for wet AMD.

OXB-302 (CAR-T 5T4) remains the priority candidate in preparation to enter clinical-stage testing in the next 12 to 18 months. Furthermore, preclinical work on OXB-204 (LCA10) and OXB-103 (ALS) are continuing and a new preclinical programme, OXB-401 (liver indication), has been initiated. Management is targeting the spin-out/out-licence of one in-house product candidate during 2020. The out-licence agreement achieved with Axovant for Axo-Lenti-PD demonstrates the scale of economic terms reached previously, although we note the unmet need and large patient population in PD as the driver for the large deal terms.

Exhibit 2: OXB proprietary gene therapy pipeline

Source: OXB corporate presentation

2020 outlook

OXB has highlighted expected newsflow for the year (Exhibit 3). Management expects two further partner contracts during 2020 and discussions with multiple potential partners are ongoing. OxBox will begin manufacturing the first commercial vector batches by end H120. Fill and finish will also be provided in-house for the first time in this new facility, providing customers with an end-to-end offering. In May 2020 OXB received MHRA approval for the first two manufacturing suites at OxBox and this will enable it to start commercial production of batches for partner programmes within the coming weeks. Furthermore, OXB is targeting the out-licence/spin-out of one of its proprietary gene therapy candidates, in addition to progressing two of its internal candidates from preclinical into the clinic (see above).

Exhibit 3: Key 2020 inflection points

Source: OXB corporate presentation

COVID-19 impact

OXB has stated that ‘so far, the Group has not experienced any and does not currently expect to experience significant supply issues or any changes in customer demand’. It has 19 programmes in development, 12 of which are in commercial development at the vector construct stage and as such will not be affected by clinical trial delays. The second Novartis and Axovant products could potentially be affected by clinical trial delays. However, OXB said it has seen no change in demand from customers. It has been granted key worker status, which has allowed it to continue servicing its customers during the UK lockdown period.

Additionally, OXB has joined a consortium led by the Jenner institute within the University of Oxford to develop, scale up and manufacture a potential vaccination for COVID-19 known as ChAdOx1 nCov-19, which is currently recruiting in Phase I. This vaccine relies on adenoviral vector technology, but OXB can leverage its LVV expertise to provide adenoviral vectors. It can provide the technical expertise for mass-scale production (via its OxBox manufacturing facility) if the initial vaccine development work proves positive. AstraZeneca has also joined the consortium and will contribute to the global development and distribution of a successful vaccine. Initial trial data are expected in Q320.

Financials

OXB reported FY19 total revenues of £64.1m (-4% y-o-y from £66.8m). Licence fees, milestone and royalty (LMR) revenue were reported at £16.8m in FY19, as FY18 (£26.3m) benefited from large upfront payment contributions on signing the Axovant and Sanofi (Bioverativ) partnerships. LMR revenue in FY19 comprised an £11.5m ($15m) milestone from Axovant and, although undisclosed, we assume the majority of the remainder is £5.3m in royalties for Kymriah.

Bioprocessing/commercial development revenues, which are historically more predictable, grew to £47.3m (+17%, £40.5m in FY18), driven by growth in Novartis’s bioprocessing volumes (notably for Kymriah) and from increased commercial development services and greater volume of development activity provided to new customers (UK Cystic Fibrosis Gene Therapy Consortium, Axovant and Santen). Novartis-related revenues now represent approximately 50% of group revenues, highlighting the diversification of customer base and revenue streams.

R&D and bioprocessing costs increased to £22.6m (FY18: £18.0m) and £7.4m (FY18: £1.2m) respectively in FY19. For R&D, this was a result of increased investments in commercial and technical projects, while the increase in bioprocessing costs is a result of headcount, facility costs and related spend on OxBox. Costs were also affected by downtime at the Yarnton bioprocessing facility (switch from Process A to B), where associated downtime costs were accounted for in bioprocessing costs rather than as COGS (as no goods were produced in the downtime). We currently include forecast bioprocessing costs in our R&D line. COGS were reported at £35.7m in FY19 (£33.3m FY18 restated) and this line now reflects reallocation of costs, which were previously consolidated with research, development and bioprocessing costs. Administrative costs rose to £11.9.m (vs £7.4m in FY18), reflecting the significant increase in employees to support expansion of the business.

Finance costs decreased to £6.5m (FY18: £9.0m), mainly due to a lower interest charge of £5.4m (FY18: £6.2m) as the Oaktree Capital Management loan was repaid at the end of June 2019. R&D tax credits increased to £4.8m (FY18: £2.5m), reflecting an increase in R&D expenditure, both in terms of headcount and materials. Capital expenditure in FY19 was £25.8m (vs £10.1m in FY18), driven mainly by the ongoing build and fit of OxBox that completed in December and expansion of the business as a whole. We expect this to drop significantly in FY20.

Gross and net cash was £16.2m at 31 December 2019 (£17.2m at 30 April 2020). We forecast £76.5m in total revenues and a £8.0m operating loss in FY20, but note that multiple sensitivities remain around this figure, including cost sensitivities in R&D, facilities and personnel, in addition to revenue sensitivities with regard to Kymriah sales growth, the extent of bioprocessing revenue, milestone payments and the execution of any new deals.

Valuation: £709m (£9.22 per share)

Our revised valuation is £709m from £718m (£9.34/share). We have updated for FY19 results, removing the Orchard stake. We have made minor adjustments to OTL-101 and 201, we have delayed OTL-101 launch to 2022 as Orchard have deprioritised this asset in favour of advancing OTL-201 into the clinic, we reflect a higher probability of success as it moves from preclinical to clinical stage development (OTL-201 – progressed to Phase I with first patient dosed on 27 April. Interim data expected in 2021). Our valuation is based on a risk-adjusted NPV of partnered products with Novartis (Kymriah and undisclosed second CAR-T: £2.05/share), Orchard Therapeutics (OTL-101 and OTL-201), Bioverativ/Sanofi (Factor VIII and Factor IX), Sanofi (SAR422459 and SAR421869), AXO-Lenti-PD (PD: £2.30/share), Juno (23p/share), OXB-203 (wet AMD), and OXB-302 (cancer). We include net cash (22p/share) and a terminal value (£2.50/share).

For extensive details of our valuation, please see our outlook note, In a cell and gene therapy sweet spot.

Exhibit 4: Valuation summary

Product/partner/indication/status

Estimated launch year

Peak royalties (£m)

Peak manufacturing revenue (£m)

Probability of success

NPV
(£m)

rNPV
(£m)

rNPV per share (p/share)

Kymriah/Novartis/r/r pALL/approved in US and EU

Launched

4

2

100%

40

40

52.05

Kymriah/ Novartis/DLBCL/approved in US and EU

Launched

24

13

100%

96

96

124.86

2nd CAR-T/Novartis/Cancers/Phase I/II

2022

27

33

20%

111

22

28.52

OTL-101/ Orchard/ADA-SCID/Phase II/III

2022

0

1

70%

6

5

5.88

OTL-201/Orchard/Sanf A synd/Phase I

2025

13

11

10%

37

6

8.03

Factor VIII/Bioverativ/Haemophilia A/preclinical

2025

499

119

5%

949

52

67.51

Factor IX/Bioverativ/Haemophilia B/preclinical

2025

125

30

5%

252

18

22.77

SAR422459/Sanofi/Stargardt/Phase II

2025

36

N/A

25%

65

18

22.86

SAR421869/Sanofi/Usher/Phase I/II

2026

29

N/A

20%

46

10

12.96

Axo-Lenti-PD/Axovant/Parkinson's/Phase I/II

2022

83

17

30%

501

177

230.48

OXB-302/NA/cancer/preclinical

2025

64

64

5%

106

5

6.33

OXB-203/NA/wet AMD/preclinical

2027

134

15

20%

171

34

44.74

Juno collaboration

2025 onwards

20%

66

17

22.51

Total pipeline and partnership value

 

 

 

 

499

649.51

Terminal value

192

250.11

Net cash at 30 April 2020

17

22.37

Total

709

922.00

Source: Edison Investment Research

Exhibit 5: Financial summary

Accounts: IFRS, Yr end: December, GBP: Thousands

 

2016

2017

2018

2019

2020e

2021e

Income statement

 

 

 

 

 

 

 

Total revenues

 

27,776

37,590

66,778

64,060

76,536

104,446

Cost of sales

 

(11,835)

(18,442)

(33,261)

(35,723)

(41,445)

(53,271)

Gross profit

 

15,941

19,148

33,517

28,337

35,091

51,175

Administrative expenses

 

(5,957)

(7,276)

(7,433)

(11,881)

(12,237)

(13,461)

R&D and bioprocessing costs

 

(24,299)

(21,611)

(19,216)

(29,924)

(30,822)

(36,872)

Other income/(expense)

 

3,002

1,774

1,064

884

0

0

Exceptionals and adjustments

 

0

2,297

5,983

(1,883)

0

0

Operating profit/(loss)

 

(11,313)

(5,668)

13,915

(14,467)

(7,968)

842

Finance income/(expense)

 

(8,994)

(6,093)

(8,901)

(6,422)

26

16

Reported PBT

 

(20,307)

(11,761)

5,014

(20,889)

(7,942)

858

Income tax expense (includes exceptionals)

 

3,666

2,744

2,527

4,823

5,064

(163)

Reported net income

 

(16,641)

(9,017)

7,541

(16,066)

(2,878)

695

Basic average number of shares, m

 

56

62

65

73

77

77

Basic EPS (p)

 

(29.9)

(14.6)

11.6

(22.1)

(3.7)

0.9

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

(6,773)

(2,645)

13,535

(4,550)

(329)

8,911

Adjusted EBIT

 

(10,448)

(7,020)

9,178

(10,337)

(7,968)

842

Adjusted PBT

 

(19,442)

(13,113)

277

(16,759)

(7,942)

858

Adjusted EPS

 

(28.4)

(16.7)

4.3

(16.4)

(3.7)

0.9

 

 

 

 

 

 

 

 

Balance sheet

 

 

 

 

 

 

 

Property, plant and equipment

 

27,514

25,370

31,791

61,932

69,262

73,172

Intangible assets

 

1,330

97

117

95

95

95

Other non-current assets

 

657

2,954

10,966

0

0

0

Total non-current assets

 

29,501

28,421

46,874

65,991

73,583

77,493

Cash and equivalents

 

15,335

14,329

32,244

16,243

5,252

3,299

Inventories

 

2,202

3,332

4,251

2,579

7,381

5,838

Trade and other receivables

 

6,904

17,088

26,585

30,045

26,211

35,769

Other current assets

 

3,000

2,232

2,446

8,070

7,783

2,719

Total current assets

 

27,441

36,981

65,526

56,937

46,626

47,625

Non-current loans and borrowings

 

34,389

36,864

41,153

0

0

0

Contract liabilities and deferred income

 

0

0

6,434

5,005

5,005

5,005

Other non-current liabilities

 

622

630

1,566

13,352

13,614

13,777

Total non-current liabilities

 

35,011

37,494

49,153

18,357

18,619

18,782

Trade and other payables

 

6,003

8,690

11,422

14,297

14,193

18,244

Contract liabilities and deferred income

 

3,313

13,072

17,084

13,156

13,156

13,156

Total current liabilities

 

9,316

21,762

28,506

28,941

28,837

32,888

Equity attributable to company

 

12,615

6,146

34,741

75,630

72,752

73,448

 

 

 

 

 

 

 

 

Cashflow statement

 

 

 

 

 

 

 

Operating profit/(loss)

 

(11,313)

(5,668)

13,915

(14,467)

(7,968)

842

Depreciation and amortisation

 

3,675

4,375

4,357

5,787

7,639

8,069

Share based payments

 

865

945

1,246

2,247

0

0

Other adjustments

 

(579)

(1,326)

(8,012)

1,886

0

0

Movements in working capital

 

1,423

141

(2,292)

(2,089)

(1,071)

(3,966)

Income taxes paid

 

4,081

4,512

3,654

3,128

5,351

5,064

Cash from operations (CFO)

 

(1,848)

2,979

12,868

(3,508)

3,951

10,010

Capex

 

(6,458)

(1,969)

(10,148)

(25,774)

(14,969)

(11,979)

Other investing activities

 

47

38

52

104

26

16

Cash used in investing activities (CFIA)

 

(6,411)

(1,931)

(10,096)

(19,398)

(14,943)

(11,963)

Net proceeds from issue of shares

 

17,497

385

19,808

53,363

0

0

Movements in debt

 

0

8,361

0

(43,589)

0

0

Interest paid

 

(3,258)

(10,800)

(4,665)

(2,513)

0

0

Other financing activities

 

0

0

0

0

0

0

Cash from financing activities (CFF)

 

14,239

(2,054)

15,143

6,905

0

0

Increase/(decrease) in cash and equivalents

 

5,980

(1,006)

17,915

(16,001)

(10,992)

(1,953)

Currency translation differences and other

 

0

0

0

0

0

0

Cash and equivalents at beginning of period

 

9,355

15,335

14,329

32,244

16,243

5,252

Cash and equivalents at end of period

 

15,335

14,329

32,244

16,243

5,252

3,299

Net (debt) cash

 

(19,054)

(22,535)

(8,909)

16,243

5,252

3,299

Source: Oxford Biomedica, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by Oxford Biomedica and prepared and issued by Edison, in consideration of a fee payable by Oxford Biomedica. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2020 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Oxford Biomedica and prepared and issued by Edison, in consideration of a fee payable by Oxford Biomedica. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2020 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Share this with friends and colleagues