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Oxford Biomedica 'buy' recommendation reiterated as COVID-19 vaccine manufacturer's revenues soar

With revenues rolling in from the COVID-19 vaccine the group is expecting another year of strong top-line growth.

Oxford BioMedica plc - Oxford Biomedica 'buy' recommendation reiterated as COVID-19 vaccine manufacturer's revenues soar

Oxford Biomedica PLC (LON:OXB), a key manufacturer of what is known as the Oxford/AstraZeneca COVID-19 vaccine, saw revenues rise sharply in 2020.

Total revenues rose by 37% to £87.7mln from £64.1mlm the year before, and with revenues rolling in from the COVID-19 vaccine the group is expecting another year of strong top-line growth.

Bioprocessing and commercial development revenues increased by 45% to £68.5mln from £47.3mln in 2019, with double-digit percentage growth across both activities, driven by new customers AstraZeneca, Beam Therapeutics and Juno/Bristol Myers Squibb (BMS).

Revenues from licences, milestones & royalties increased to £19.2mln from £16.8mln the year before due to the recognition of a £7.8mln licence fee from Juno/BMS as well as other licence fees, milestones and royalties from customers.

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) turned positive at £7.3mln, compared to a loss in 2019 of £5.2mln, and was marginally above company guidance.

The reported loss before tax narrowed to £6.57mln from £20.89mln the year before.

The company had cash of £65.9mln at the end of March compared to cash of £46.7mln at the end of 2020.

With the growth in partner programmes during 2020, the group expects an increase in underlying LentiVector platform based revenues in 2021 from both bioprocessing and commercial development activities. Also, following approval of the Oxford/AstraZeneca COVID-19 vaccine and with production at the Oxbox manufacturing facilities progressing well, subject to the continued manufacture of the vaccine, the group expects total cumulative revenues from this programme to be in excess of £50mln by the end of 2021.

At an operating EBITDA level, the group also expects an increase from 2020, albeit at a more modest rate than revenues due to increased research & development spend.

"I am truly proud of the group's achievements over the period. We not only secured major new partnerships, brought the Oxbox manufacturing facility online in record time and responded to the challenges of the pandemic, but the team has also been able to rapidly work with AstraZeneca to provide a vaccine solution for COVID-19,” said John Dawson, the chief executive officer of Oxford Biomedica.

“Looking to the future, with the continued tide of growth in cell and gene therapy, coupled with the group's leadership position in the lentiviral vector field, we are well-positioned to advance both our own proprietary pipeline and that of our current and future partners' programmes.,” he added.

Shares in Oxford Biomedica were up 0.6% at 1,046p in mid-morning trading.

Liberum Capital said there was no new news in the announcement but the release provided “a recap of an excellent year”.

“Revenues of £88mln were in line with our expectations and EBITDA of £7.3mln clearly ahead of our £3.7mln forecast,” the broker said.

It has a target price of 1,280p and reiterated its ‘buy’ recommendation.

Quick facts: Oxford BioMedica PLC

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Price: 1450.56 GBX

Market Cap: £1.2 billion

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