Oxford BioMedica PLC (LSE:OXB) has had a busy summer. The gene therapy manufacturer, now positioned as a contract development and manufacturing organisation (CDMO), raised £60 million in August and secured a new loan facility.
According to Panmure Liberum, these moves have cleared one of the biggest investor worries: that the group lacked the firepower to invest in its own expansion.
The cash will go mainly towards its US site, where facilities have so far been limited to early-stage work. With tariffs looming,
Panmure argues that OXB needs commercial-scale manufacturing capacity on American soil, along with so-called fill-finish services, which cover the final stages of preparing therapies for market.
The new funding also leaves room for bolt-on acquisitions if opportunities arise.
Interims, due on September 23, should show momentum. A July trading update flagged half-year revenues up more than 40% to £70–73 million, with order intake of £149 million against £56 million a year earlier.
Contracted revenues already cover full-year guidance, and the order book has swelled to £222 million.
Panmure expects an EBITDA loss of £4.8 million in the first half, narrowing sharply from £13.1 million last year, with a profitable second half to follow.
The bigger story is the guidance. OXB now expects revenues of £220–240 million in 2026, ahead of consensus, rising 25–30% a year through 2028.
The broker’s model suggests this is achievable if OXB adds two late-stage programmes each year and a commercial contract every couple of years.
The mix matters: a single commercial programme can be worth more than 100 times an early feasibility study. By 2028, Panmure assumes five such contracts, reducing reliance on any one client.
On valuation, the target price has been lifted to 800p from 497p, reflecting both the stronger outlook and firmer peer multiples. At 600p, the shares trade at a discount to specialist peers despite faster expected growth.
The stock, up 33% in the past month, was off 1.5% at 591p on Friday.