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Oxford University biotech spinout to float on AIM

Oxford BioDynamics will officially list on AIM next week, in what will be a boost for the UK life sciences sector
picture of drugs being tested
Oxford BioDynamics is valued at £136mln

A biotech firm spun-out from the University of Oxford almost a decade ago will make its debut on the AIM market next week after successfully raising £20mln from investors.

Oxford BioDynamics is focused on epigenetics, and its technology analyses biomarkers in the blood to help pharma companies work out which patients are likely to benefit most from a particular drug.

It’s a growing market that Oxford is looking to crack and one that it says will only continue to expand.

The outsourced biomarker and companion diagnostic markets are estimated to be worth around US$6bn a year at the moment and are forecast to register double-digit growth for the next couple of years.

“We are delighted to be joining AIM at such a pivotal time in the company’s development,” said chief executive Christian Hoyer Millar.

“By further strengthening our balance sheet, we are now ideally positioned to accelerate our growth at a time where we believe that there are significant opportunities for the EpiSwitch platform.”

It recorded a loss of £1mln last year, but unlike some of its peers it is revenue-generating, getting its income through contracts with pharmaceutical groups.

Oxford BioDynamics – predictably based in Oxford – will come to AIM with a market cap of around £136mln.

Of the £20mln proceeds, around £7.1mln will find its way to the company, with the selling shareholders receiving the remainder.

The biotech says it will use the cash to fund expansion and enhance its IP portfolio, and it hopes the injection will provide enough working capital for the next two to three years.

Some of the money will also go towards helping Oxford establish a presence across the pond, with the US seen as the go-to market for companies of this ilk.

Shares are due to start trading on 6 December and are priced at 158p.

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