LONDON: Oxford Biomedica plc, a leading cell and gene therapy Contract Development and Manufacturing Organization (CDMO), has released its preliminary financial results for the year ending December 31, 2023. Despite a challenging year, the Group has maintained stable core business revenues with a slight increase, although total revenues saw a significant drop of 36% to £89.5 million, primarily due to the absence of vaccine manufacturing revenues that bolstered the previous year’s figures.
The Group has undergone a strategic rebasing of its business, resulting in a streamlined cost base. This restructuring led to an Operating EBITDA loss of £52.8 million, a stark contrast to the £1.6 million profit in 2022. The operating loss widened to £184.2 million, which included a substantial £99.3 million impairment charge related to the US business, following Homology’s decision to halt clinical activities.
On a positive note, Oxford Biomedica has successfully reduced its ongoing cost base by approximately £30 million on an annualised basis compared to the previous year. The balance sheet remains robust, with cash reserves of £103.7 million and net cash of £65.2 million as of December 31, 2023.
Looking ahead, the Group’s commercial Key Performance Indicators (KPIs) signal confidence in future growth. The contracted value of client orders signed during the year amounted to £131 million, marking an increase of over 50% from £85 million in 2022. Additionally, the revenue backlog, including operations in France, stood at £104 million as of March 31, 2024, an 11% increase from the end of the previous year.
Oxford Biomedica reiterates its financial guidance for the near and medium term, projecting total Group revenues between £126 million and £134 million for 2024, with a three-year Compound Annual Growth Rate (CAGR) of more than 35% for the period 2023-2026. The Group anticipates a broadly breakeven EBITDA for 2024, excluding the impact of the recent acquisition of ABL Europe, now known as Oxford Biomedica (France). A modest operating loss is expected for 2024 due to the new sites in France, which will be offset by €10 million in cash funding from Institut Mérieux as part of the acquisition. By the end of 2026, Oxford Biomedica aims to achieve Operating EBITDA margins in excess of 20% and reach profitability on an EBITDA level in 2025.
Dr. Frank Mathias, Oxford Biomedica’s Chief Executive Officer, said: “2023 was a year of transformation for Oxford Biomedica. We are building our position as a global pure-play cell and gene therapy CDMO and through our ‘One OXB’ strategy are unifying our operations in the UK, US and the EU, including our newly-acquired sites in France.
I am delighted with the positive outcomes of our strategy, which have already resulted in a substantial increase in contracted client orders and our business development pipeline. Despite challenging market conditions, we continue to see strong demand for our CDMO services, further solidifying our position as a world-leading global CDMO in the rapidly expanding cell and gene therapy market.
Our focus in 2024 remains on growing our global portfolio of clients and projects across all stages of clinical development whilst completing the integration of our sites. This integration will allow us to better align to the demands of performing as a pure-play CDMO. With a highly experienced Corporate Executive Team and a focus on delivering high-quality CDMO services to our clients, our realigned business is well-positioned to help our clients deliver their transformative treatments to patients and drive long-term sustainable growth for the Group.
“I would also like to take this opportunity to express my gratitude to all our employees for their tireless efforts, as well as their perseverance and commitment during a period of significant change for the Group. Their dedication and hard work have been instrumental in our transformation into a pure-play CDMO and achieving the significant milestones along the way.”
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