REG - Oxford Biomedica PLC - Updated Financial Guidance and 2023 Trading

Oxford BioMedicaAnnouncement

05/03/2024 07:00

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RNS Number : 5446F  Oxford Biomedica PLC  05 March 2024

 

Update to Medium-Term Financial Guidance and 2023 Trading and Notice of
Preliminary Results

-     Three-year revenue CAGR increased to more than 35%, up from prior
guidance of more than 30%

 

-     Projected FY2024 revenue range of £126 million to £134 million,
reflecting the successful integration of ABL Europe and anticipated growth
from new and existing client programmes

 

-     FY2023 revenues and EBITDA expected to be in line with guidance
provided at the Interim Results

 

-     FY2023 Preliminary Results to be reported on Monday, 29 April 2024

 

Oxford, UK - 5 March 2024: Oxford Biomedica plc (LSE:OXB) ("Oxford
Biomedica", "OXB" or "the Company"), a quality and innovation-led cell and
gene therapy CDMO, today provides an update to its medium-term financial
guidance following the recent completion
(https://www.londonstockexchange.com/news-article/OXB/completion-of-transaction/16308118)
of its acquisition of ABL Europe SAS ("ABL Europe") from Institut Mérieux SA
("the Transaction"), as well as an update on trading for the year ended 31
December 2023.

 

Additionally, the Company announces that it will report its Preliminary
Results for the twelve months ended 31 December 2023 on Monday 29 April 2024.

 

Trading update for FY2023 and updated medium-term financial guidance

In line with guidance provided at the Interim Results, revenues for the year
ended 31 December 2023 are expected to be approximately £90 million.
Operating EBITDA loss for the second half of 2023 is on track to be
approximately £10 million better than the first half, as previously guided.

 

As a result of the Transaction, including the additional revenues expected
from the Company's recently acquired operations in France, revenues for the
year ended 31 December 2024 are expected to be between £126 million and £134
million, with revenues for the year being second half-weighted. Furthermore,
the Company now expects a three-year revenue CAGR of more than 35% for the
years 2023-2026, exceeding the previously communicated figure of more than
30%.

Following the completion of the Company's streamlining efforts in 2023,
including the transition to a global site-based model, Oxford Biomedica
reiterates its guidance of achieving broadly breakeven EBITDA in 2024,
excluding the impact of the Transaction. Including the impact of the
Transaction, the Company anticipates a modest operating loss attributed to the
recently acquired French operations. This is expected to be fully funded by
the €10 million cash funding in ABL Europe from Institut Mérieux received
prior to completion of the Transaction.

 

The Company confirms that it expects to achieve Operating EBITDA margins in
excess of 20% by the end of 2026, as previously guided, and to be profitable
on an EBITDA level in 2025.

 

Liquidity update post ABL Europe acquisition

The cash position at 31 December 2023 was £103.7 million. This excludes the
€10 million cash funding in ABL Europe provided by Institut Mérieux upon
completion of the Transaction on 29 January 2024. Post completion of the
Transaction, Institut Mérieux SA became a 6.2% shareholder. Institut Mérieux
will increase their shareholding upon the issuance of new shares pursuant to
the subscription agreed as part of the Transaction, which was cash neutral for
OXB.

 

As previously disclosed in the announcement on 20 September 2023
(https://www.londonstockexchange.com/news-article/OXB/project-aquarius/16131500)
, this tranche of funding will provide the Company with €20 million to cover
capital expenditure and potential operational losses related to the
acquisition of ABL Europe, in exchange for Oxford Biomedica ordinary shares.
The shares will be issued prior to 27 September 2024, with timing at Oxford
Biomedica's discretion, at a price being the 30-day VWAP to the day before the
date of this subscription.

 

Continued growth in orderbook for CDMO services

Throughout 2023, OXB continued to grow and diversify its portfolio of clients
and programmes with multiple expanded and new agreements signed for the
development and manufacture of lentivirus, AAV and adenoviral vectors as well
as other vector types.

 

The contracted value of client orders signed during the year ended 31 December
2023 was £131 million, an increase of more than 50% compared to £85 million
in the year ending 31 December 2022 (excluding COVID-19 vaccine
manufacturing). This increase reflects the improved biotech funding
environment, which further instils confidence in the Company's ability to
further expand its backlog and receive orders.

 

Dr. Frank Mathias, Chief Executive Officer of Oxford Biomedica, commented:
"OXB is continuing to successfully deliver its pure-play CDMO strategy. Our
expansion into the European Union through the acquisition of ABL Europe
strengthens our vector-agnostic service offering and strongly demonstrates our
commitment to global client service and excellence. With these developments
and our growing order book, we are confident about accelerating our financial
performance and fulfilling our updated medium-term guidance."

 

Notice of Preliminary Results

OXB expects to report its Preliminary Results for the twelve months ended 31
December 2023 on Monday 29 April 2024. A briefing for investors and analysts
will take place at 13:00 BST / 08:00 ET at One Moorgate Place, London, EC2R
6EA.

 

-Ends-

 

Enquiries:

 

Oxford Biomedica plc:

 

Sophia Bolhassan, VP, Corporate Affairs and IR - T: +44 (0) 1865 509 737 / E:
ir@oxb.com

 

ICR Consilium:

 

T: +44 (0)20 3709 5700 / E: oxfordbiomedica@consilium-comms.com

Mary-Jane Elliott / Matthew Neal / Davide Salvi

 

 

About Oxford Biomedica

 

Oxford Biomedica (LSE: OXB) is a quality and innovation-led cell and gene
therapy contract development and manufacturing organisation (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), adenoviral vectors, and other viral vector types. 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, Lyon and Strasbourg, France, and near
Boston, MA, US. Learn more at www.oxb.com (https://www.oxb.com/) , and follow
us on LinkedIn (https://www.linkedin.com/company/oxford-biomedica/) and
YouTube (https://www.youtube.com/user/OxfordBioMedica) .

 

 

 

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