Currency in -
Last close As at 26/05/2023
-458.50
▲ 6.00 (1.33%)
Market capitalisation
GBP441m
Research: Healthcare
Oxford Biomedica (OXB) has signed a five-year collaboration agreement with the Vaccines Manufacturing and Innovation Centre (VMIC), a non-profit organisation established as the UK’s response to emerging infectious diseases. The agreement focuses on the scale up and GMP manufacture of the adenovirus-based COVID-19 vaccine candidate AZD1222 (previously ChAdOx1 nCoV-19), which is in a Phase II/III study. Initial data from the precursory Phase I/II study are expected in Q320. AstraZeneca is now responsible for the global development, manufacture and distribution of the vaccine and in May signed a one-year clinical and commercial supply agreement with OXB for multiple batches expected in 2020. Our OXB forecasts and valuation of £709m are unchanged.
Written by
John Priestner
Oxford Biomedica |
COVID-19 vaccine collaboration agreement |
Corporate update |
Pharma & biotech |
8 June 2020 |
Share price performance Business description
Analysts
Oxford Biomedica is a research client of Edison Investment Research Limited |
Oxford Biomedica (OXB) has signed a five-year collaboration agreement with the Vaccines Manufacturing and Innovation Centre (VMIC), a non-profit organisation established as the UK’s response to emerging infectious diseases. The agreement focuses on the scale up and GMP manufacture of the adenovirus-based COVID-19 vaccine candidate AZD1222 (previously ChAdOx1 nCoV-19), which is in a Phase II/III study. Initial data from the precursory Phase I/II study are expected in Q320. AstraZeneca is now responsible for the global development, manufacture and distribution of the vaccine and in May signed a one-year clinical and commercial supply agreement with OXB for multiple batches expected in 2020. Our OXB forecasts and valuation of £709m are unchanged.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
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.
AZD1222 is a high-profile COVID-19 vaccine candidate developed by the Oxford consortium, led by the Jenner Institute within the University of Oxford. As part of the collaboration agreement, the VMIC will provide manufacturing equipment for OXB to rapidly equip two of the manufacturing suites within OxBox, its 84,000 sq ft state-of-the-art bioprocessing facility. This should provide significant additional manufacturing capacity for AZD1222 from Q320 to service the UK and European vaccine demand. These suites could also be used for other potential viral vector vaccine candidates. OXB will also provide expertise and technical assistance to the VMIC and its staff to accelerate the operational readiness of its new manufacturing site due to open in mid-2021, a year ahead of schedule. The agreement also provides a foundation for a long-term partnership for future novel viral vector vaccine candidates.
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Research: Healthcare
Acacia Pharma has announced an amendment to its original deal terms with Cosmo Pharmaceuticals, whereby €10m of the agreed loan facility (up to €35m, of which €25m is contingent on ByFavo approval) will be swapped for a €10m equity stake (through the issue of 3,213,769 shares at €3.112, a 4.1% premium to the previous day’s closing price). This will take Cosmos’s holding of Acacia’s enlarged share capital to ~18.5%. This is a positive signal and, importantly, lowers the interest payments on debt. 2020 is an inflection year – the FDA approved BARHEMSYS (reformulated amisulpride) for the management of PONV on 26 February and the ByFavo PDUFA data for procedural sedation is imminent (5 July). Our forecasts remain unchanged as we anticipate an increase in elective surgical procedures in the second half of the year and drug shortages to affect uptake of these short-acting products designed to reduce hospitalisation times. Timely approval and launch are thus critical. We value Acacia at €992.1m or €14.6/share.
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