Oxford Biomedica PLC jumped 10% as it started exclusive negotiations to acquire ABL Europe, a contract manufacturing (CDMO) business, from Institut Mérieux.
In a statement, Oxford Bio said the deal, if agreed, would instantly give it multi viral vector CDMO capabilities across multiple sites in the EU, US and UK plus bolster its cell and gene therapy contract services.
Consideration of €15 million is payable in Oxford Biomedica shares at an issue price of not less than 407.4p per share.
Institut MérieIux will also commit to €20million of future funding to ABL Europe through subscriptions for Oxford Biomedica shares.
Frank Mathias, Oxford Biomedica’s chief executive, said: "As part of our transformation into a pure-play CDMO in 2023, this potential acquisition augments our position as a world-leading quality and innovation-led CDMO in the cell and gene therapy field.
“ABL Europe offers the opportunity to gain a footprint in the EU and free up Oxford Biomedica's capacity to meet increasing client demand, as well as significantly increasing our capabilities and flexibility for clients."
Shares rose 10% to 266p.