Enhancing our position as a global quality and innovation-led viral vector CDMO
Oxford, UK – 25 April 2023: Oxford Biomedica plc (“Oxford Biomedica” or “the Company”) (LSE: OXB), a quality and innovation-led viral vector CDMO, announces its preliminary results for the year ended 31 December 2022.
Dr. Frank Mathias, Oxford Biomedica’s Chief Executive Officer, said:
“I am honoured to present my inaugural set of financial results as CEO of Oxford Biomedica. Under the leadership of Roch and the Senior Executive Team, the Company has delivered another strong set of results from its growing international platform.
“In 2022, we have successfully grown our core business by expanding our global reach, establishing Oxford Biomedica Solutions in the US and broadening our expertise in key viral vector types, including AAV. The expansion of our development and manufacturing capabilities has enabled us to drive innovation whilst both attracting new international biopharma clients and expanding existing collaborations. We have also successfully right-sized our business and we are now in a robust financial situation to strengthen our position as a global quality and innovation-led viral vector CDMO.
“Our mission is centred on enabling our clients to deliver life-changing therapies to patients worldwide and in my brief tenure to date, I have been profoundly inspired by our team’s unwavering commitment and exceptional talent, which serve as the driving force behind our success.
With a clearly defined vision for the future, I look forward to working closely with our team, and our clients, and to making a lasting impact on the lives of patients worldwide.”
Financial highlights
Total revenues broadly in line with last year at £140.0 million (2021: £142.8 million) due to strong performance by Oxford Biomedica Solutions despite lower COVID-19 vaccine bioprocessing volumes. Double digit revenue growth in the core business (excluding COVID-19 vaccine manufacturing) compared to FY 2021.
Revenues from bioprocessing and commercial development activities were maintained at £128.1 million (2021: £128.4 million). This included aggregate vaccine revenues in excess of £40.0 million.
Revenues from milestones, licences and royalties, which, in the prior year, included recognition of a £4.0 million license fee from Boehringher Ingelheim, decreased by 17% to £11.9 million (2021: £14.4 million), this decrease was driven by lower license fees from new client programmes.
The launch of Oxford Biomedica Solutions, enabling entry into the fast-growing AAV market whilst also establishing a key strategic presence in the US, drove an increase in operating expenses to £123.0 million (2021: £62.5 million) which included one-off acquisition-related costs. Active cost control initiatives were initiated to reduce the Group’s operating cost base as the COVID-19 pandemic eased.
Operating EBITDA and operating profit benefited from a profit on the sale and leaseback of the Windrush Court facility for £21.4 million.
Operating EBITDA profit of £1.6 million and operating loss of £30.2 million (2021: operating EBITDA profit and operating profit of £35.9 million and £20.8 million respectively) due to reduced AstraZeneca vaccine production, consolidation of the investment in Oxford Biomedica Solutions investment and one-off acquisition-related due diligence costs of £5.1 million.
Entered into a US$85 million short-term loan facility with Oaktree Capital Management, L.P. (“Oaktree”) to finance a portion of the transaction with Homology Medicines Inc. (“Homology Medicines”) to establish Oxford Biomedica Solutions. The loan was refinanced in October, partially repaid, and amended to a US$50 million four-year term loan facility.
Cash at 31 December 2022 was £141.3 million (2021: £108.9 million); Net cash at 31 December 2022 was £101.5 million and £98.8 million at 31 March 2023.
Operational highlights delivered in 2022
Established Oxford Biomedica Solutions, an innovative service provider and adeno-associated virus (AAV) product developer with complete end-to-end chemistry, manufacturing and controls capabilities and expertise, from preclinical development through to clinical drug supply.
Significantly increased client base with 13 new or expanded client relationships across lentiviral vectors and AAV (including 3 post-period). The Group’s CDMO portfolio currently comprises more than 30 programmes for its clients.
Amended and expanded the original License and Clinical Supply Agreement signed with Juno Therapeutics, Inc. (Juno) a wholly owned subsidiary of Bristol Myers Squibb Company, to include two new viral vector programmes.
Expanded capacity through innovation and advanced technologies, rolling out Process C at 200L scale in GMP, with several clients adopting or evaluating the next-generation lentiviral manufacturing platform due to the evident gains in vector quantity and quality it affords.
Oxbox, the Group’s largest manufacturing facility, received MHRA approval for its fill finish suite in August 2022. This high quality, state-of-the art value-added capability is now being rolled out to clients.
Reviewed strategic options and started exploring external funding opportunities for the gene therapeutics portfolio to realise the potential of its innovative and differentiated programmes that address unmet medical needs.
Corporate highlights
Continued to strengthen Board and leadership team with the appointment of Dr. Frank Mathias as CEO (post-period) and the appointment of Namrata Patel as an Independent Non-Executive Director. John Dawson stepped down as CEO in January 2022.
New hires added to the leadership team in 2022 included Tim Kelly, CEO and Chair of Oxford Biomedica Solutions, Dr. Ravi Rao, Chief Medical Officer and Dr. Sebastien Ribault, Chief Commercial Officer.
Outlook
In 2023, targeting double-digit growth in lentiviral vector and AAV manufacturing and commercial development revenues through existing client relationships and new agreements.
Continuously investing in new technologies to maintain a competitive edge in lentiviral vectors and build a leading position in AAV.
Aspiring to achieve market leadership in the viral vector outsourced supply market across all key vector types, while exceeding long-term revenue growth rates of the broader market.
Analyst briefing
Oxford Biomedica’s management team, led by new CEO, Dr. Frank Mathias and Stuart Paynter, CFO, will be hosting a briefing and Q&A session for analysts at 13:00 BST / 8:00 EST today, 25 April, at Etc. Venues St Paul’s, 200 Aldersgate, London, EC1A 4HD.
A live webcast of the presentation will be available via this link.
The presentation will be available on the Company’s website at www.oxb.com
______________
Read the Oxford Biomedica plc preliminary results for the year ended 31 December 2022 in full:
Download PDF here
London Stock Exchange website RNS
Notes
Unless otherwise defined, terms used in this announcement shall have the same meaning as those used in the Annual report and accounts.
Enquiries:
Oxford Biomedica plc:
Taylor Boyd, VP, Head of IR
T: +1 (984) 268 8488/ E: ir@oxb.com
Sophia Bolhassan, VP, Corporate Affairs and IR
T: +44 (0)1865 783 000
Consilium Strategic Communications:
T: +44 (0)20 3709 5700
Mary-Jane Elliott
Matthew Neal
Davide Salvi
Peel Hunt (Joint Corporate Brokers):
T: +44 (0)20 7418 8900
James Steel
Dr. Christopher Golden
JP Morgan (Joint Corporate Brokers):
T: +44 (0)20 7134 7329
James Mitford
Gautham Baliga
______________
About Oxford Biomedica
Oxford Biomedica (LSE: OXB) is a quality and innovation-led viral vector CDMO with a mission to enable its clients to deliver life changing therapies to patients around the world.
One of the original pioneers in cell and gene therapy, the Company has more than 25 years of experience in viral vectors; the driving force behind the majority of gene therapies. The Company collaborates with some of the world’s most innovative pharmaceutical and biotechnology companies, providing viral vector development and manufacturing expertise in lentivirus, adeno-associated virus (AAV) and adenoviral vectors. Oxford Biomedica’s world-class capabilities span from early-stage development to commercialisation. These capabilities are supported by robust quality-assurance systems, analytical methods and depth of regulatory expertise.
Oxford Biomedica, a FTSE4Good constituent, is headquartered in Oxford, UK. It has locations across Oxfordshire, UK and a US-based subsidiary, Oxford Biomedica Solutions, based near Boston, MA, US. Learn more at www.oxb.com, www.oxbsolutions.com, and follow us on LinkedIn, Twitter and YouTube.