Shares in gene and cell therapy group Oxford Biomedica (OXB) jumped 8% to £10.83 after it upgraded financial guidance following an increase in a supply contract with pharma giant AstraZeneca (AZN).
After successfully manufacturing large-scale batches of the Covid-19 vaccine, AstraZeneca has committed to an increase in the number of batches it requires from Oxford Biomedica for the second half of 2021.
Consequently, the company has raised its guidance for cumulative revenues over the three-year life of the contract to reach in excess of £100 million, doubling its prior estimate. The agreement was signed in September 2020.
SIGNIFICANT GROWTH EXPECTED
This will result in ‘significant growth’ in group operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the year ended 31 December 2021, said Oxford Biomedica.
The current analyst consensus is for full year EBITDA to grow 125% to £16.4 million, according to data provider Refinitiv.
The commitment to AstraZeneca for vaccine production is not expected to have an impact on the group’s ability to secure and support additional new partnerships in the cell and gene therapy field.
The company has entered into several partnerships with leading pharma groups including Novartis and Bristol Myers Squibb.
Chief executive John Dawson insisted ‘everyone involved with production of the COVID-19 vaccine can be truly proud of their achievement in manufacturing batches of vaccine from our Oxbox manufacturing facility.’
Oxford Biomedica is a fully integrated cell and gene therapy group focused on developing life changing treatments for serious diseases including cancer, ophthalmology, brain and nervous system disorders and liver diseases.
