LONDON, UK: Oxford Biomedica, a leading cell and gene therapy CDMO, has announced a business update for the year ending 31 December 2023. The update highlights the Company’s progress in transforming its operations, expanding its client base, and enhancing its capabilities across multiple viral vector platforms and sites.

The Company has completed the reorganisation of its workforce, which aims to increase efficiency and client-centricity, and align its structure with the specific needs of a pure-play CDMO. The reorganisation includes a more streamlined structure across the UK and US, as well as other measures to optimise its operations. As a result, the Company expects to reduce its ongoing cost base from 1 January 2024 by c.£30 million on an annualised basis compared to 2023.

The Company has also reported strong business development activity, reflecting its competitive position in the viral vector space. The Company has signed more than twice as many contracts and client orders in 2023 as in the previous year, with a current contracted value of £124 million, an increase of 47% compared to £85 million in 2022 (excluding COVID-19 vaccine manufacturing). The Company has also seen a growing demand for its services from a diverse range of pharmaceutical and biotech clients, not only in lentivirus, AAV, and adenoviral vectors, but also in other vector types, which now account for more than 10% of the weighted pipeline.

The Company has confirmed that it is on track to deliver revenues of approximately £90 million for the year ending 31 December 2023, in line with the guidance provided at the Interim Results in September.

The Company has also improved its Operating EBITDA loss for the second half of 2023, which is expected to be approximately £10 million better than the first half.

The Company remains on track to achieve broadly breakeven Operating EBITDA in 2024, supported by positive momentum in business development activities and new orders recently secured across lentivirus, adenoviral vectors and AAV, with both new and existing clients.

This momentum will also enable the Company to meet its medium term guidance of a three-year revenue CAGR in excess of 30%, and at least a doubling of revenues by the end of 2026.

The above guidance excludes the financial impact of the acquisition of ABL Europe, a leading viral vector CDMO based in France. The Company expects to complete this transaction in the first quarter of 2024, and will provide further financial guidance after the completion.

The Company has also made significant progress in transferring its lentiviral vector capabilities to its Bedford, Massachusetts site. The transfer of its 5L process is already underway, and will be followed by the introduction of 7L scale and 50L pilot scale capabilities. The material produced from these pilot scale batches will be used to support assay qualification for pre-clinical activities as well as for IND and IMPD enabling studies.

The Company has also strengthened its leadership team with the appointment of Thierry Cournez as Chief Operating Officer & Site Head of UK Operations, and Mark Caswell as Chief Commercial Officer. Both bring extensive experience and expertise in the CDMO sector, and will lead the integration of Oxford Biomedica’s sites and drive the growth of its global client base.

Oxford Biomedica is a quality and innovation-led cell and gene therapy CDMO, with a track record of delivering high-quality viral vector products and services to its clients. The Company has a portfolio of proprietary technologies and capabilities, including LentiVector®, a lentiviral vector platform, and Oxbox®, a modular and scalable manufacturing platform. The Company also has a strong pipeline of proprietary and partnered product candidates in development, targeting various indications in oncology, ophthalmology, CNS, and rare diseases. The Company is headquartered in Oxford, UK, and has operations in the UK and the US.