Press releases

Preliminary results for the year ended 31 December 2021

Saving Lives

Oxford, UK – 20 April 2022: Oxford Biomedica plc (LSE: OXB), (“Oxford Biomedica” or “the Group”), a leading cell and gene therapy group, today announces its preliminary results for the year ended 31 December 2021.

Dr. Roch Doliveux, Chair and Interim Chief Executive Officer of Oxford Biomedica, said:

“I am delighted with our performance in 2021 which was a true testament to the hard work of all our employees. 2021 financial performance was exceptional due to large-scale manufacture of the adenovirus-based Oxford AstraZeneca COVID-19 vaccine, and we have successfully manufactured over 100 million doses since the partnership began. During the year we also built on our existing partnerships, including with Boehringer Ingelheim, as well as signed two new partnerships with innovative biotech companies, Immatics and Arcellx.

2022 will be another important year as we execute on our strategy to become a global viral vector leader, providing life-changing therapies and vaccines to patients. With the outsourced vector manufacturing supply market growing rapidly, we see significant potential to build upon our success with lentiviral vectors and expand the scope of our innovative process development and manufacturing to all classes of viral vectors.

Our recently launched Boston, US-based Adeno-Associated Virus (AAV) manufacturing and innovation business, brings a fully established and operating ‘Plug & Play’ platform, four patent families, and the full breadth of AAV capabilities and capacity into Oxford Biomedica. This lays the foundation to increase our presence in the strategically important US market and build our global footprint.

I would like to sincerely thank our employees, partners and shareholders for their continued support.”

Financial Highlights

 
Selected highlights are as follows:

•    Total revenues increased by 63% over 2020 to £142.8 million (2020: £87.7 million).

•    Revenues from bioprocessing and commercial development continued its upward trend, growing 87% due to large scale commercial manufacture of the Oxford AstraZeneca COVID-19 vaccine.

•    Revenues from milestones, licences and royalties, which included recognition of the £4.0 million license fee from Boehringer Ingelheim, decreased by 25% to £14.4 million. In 2020 a license fee from Juno Therapeutics/Bristol Myers Squibb of £7.8 million ($10 million) was recognised.

•    Operating EBITDA1 and operating profits improved by £28.5 million and £26.5 million respectively, with the Group generating an Operating EBITDA1 profit of £35.9 million and an operating profit of £20.8 million.

•    The Platform division made an Operating EBITDA1 profit of £45.3 million (2020: £13.9 million profit) and an operating profit of £31.4 million (2020: £2.0 million profit), whilst the Product division made an Operating EBITDA1 loss of £9.4 million (2020: £6.6 million loss), and an operating loss of £10.6 million (2020: £7.7 million loss).
•    Cash generated from operations of £24.5 million in 2021 (2020: £3.9 million used in operations) increased as a result of vaccine manufacture for AstraZeneca, offset by further operational investments required.

•    Gross proceeds of £50.0 million were raised through a placing with Serum Life Sciences Ltd in September 2021 to develop the fallow area of the Oxbox manufacturing facility.

•    Cash at 31 December 2021 was £108.9 million and £144 million at 31 March 2022.
1. Operating EBITDA (Earnings Before Interest, Tax, Depreciation, Amortisation, revaluation of investments and assets at fair value through profit & loss, and Share Based Payments) is a non-GAAP measure often used as a surrogate for operational cash flow as it excludes from operating profit or loss all non-cash items, including the charge for share options. However, deferred bonus share option charges are not added back to operating profits in the determination of Operating EBITDA as they may be paid in cash upon the instruction of the Remuneration Committee. A reconciliation to GAAP measures is provided on page 18.

Operational Highlights


COVID-19 Vaccine and Agreement with AstraZeneca

•    Continued large-scale commercial manufacture of the adenovirus-based Oxford
AstraZeneca COVID-19 vaccine at the Group’s Oxbox facility, running three
manufacturing suites at 1000L scale to maximise production of vaccine

•    Cumulative revenues from AstraZeneca by the end of 2021 were in excess of
£100 million, contributing to significant growth in Group Operating EBITDA in 2021
 
Novartis Partnership
•    In December, Novartis and Oxford Biomedica extended their commercial supply
agreement for the manufacture of lentiviral vectors for several Novartis CAR-T products
to the end of 2028

•    Global roll out of Kymriah® in both paediatric and young adult relapsed or refractory
B-cell acute lymphoblastic leukaemia (r/r ALL) and relapsed or refractory diffuse large
B-cell lymphoma (r/r DLBCL) indications continued to expand with more than 365
qualified treatment centres in 30 countries having coverage for at least one indication

Boehringer Ingelheim
•    In April, Oxford Biomedica announced that it had entered into a new three-year
development and supply agreement with Boehringer Ingelheim for the manufacture
and supply of various types of viral vectors, demonstrating the versatility of the
Group’s platform

•    In October, the Group announced that Boehringer Ingelheim had exercised its option
to license Oxford Biomedica’s lentiviral vector technology to manufacture, register
and commercialise BI 3720931 as a long-lasting therapeutic option for patients with
cystic fibrosis

Other Partnership News and Strategic Updates
•    Oxford Biomedica continues to actively progress its exciting collaborations with
Juno Therapeutics Inc. (a wholly owned subsidiary of Bristol Myers Squibb Inc.)
and Beam Therapeutics

•    In March, Oxford Biomedica announced that Sanofi had given notice of their intent
to terminate their collaboration and license agreement for the process development
and manufacturing of lentiviral vectors to treat haemophilia. Oxford Biomedica
expects a negligible impact on revenue over the coming 18-month period

•    In November, OXB signed a new agreement with Immatics, a leading company
developing T-cell-redirecting cancer immunotherapies

•    In December, Oxford Biomedica announced a new license and supply agreement and
a three-year clinical supply agreement with leading next-generation CAR-T developer
Arcellx, and is currently working on their lead CAR-T programme

•    In May, Orchard Therapeutics announced it would be returning the rights
to its OTL-101 programme to the academic originators of that programme

•    Post-period end, Oxford Biomedica announced a license and supply agreement
with Cabaletta Bio for their DSG3-CAART programme (now in Phase I) (January 2022)

•    Post-period end, Oxford Biomedica announced that Sio Gene Therapies had given
notice of their intention to return the rights for AXO-Lenti-PD; Oxford Biomedica
plans to out-license the programme in due course (February 2022)

•    During 2021, the Group concluded an internal review of its proprietary pipeline and,
following this, identified a set of select assets for development

Investment from Serum Life Sciences Ltd
•    In September, Serum Life Sciences Ltd (a subsidiary of Serum Institute of India) made an
investment of £50 million in the Company in return for 3.9% of the share capital at the time

•    The proceeds of the transaction will fund the development of the fallow area at Oxbox
into a flexible advanced manufacturing space for a variety of viral vector based products,
including cell and gene therapy products, vaccines and other advanced therapeutics
at 2,000L scale

Transaction with Homology Medicines, Inc and creation of Oxford Biomedica Solutions (post-period end)
•    In January 2022, Oxford Biomedica announced that it had agreed with Homology
Medicines to establish Oxford Biomedica Solutions, a high-performing, full scope
AAV manufacturing and innovation business near Boston, US

•    The transaction completed on 10 March 2022 and is immediately accretive to the
Group’s revenue growth

•    The transaction has expanded the Group’s suite of viral vector capabilities into the large
and growing AAV segment

•    Oxford Biomedica, Inc acquired an 80% ownership interest in Oxford Biomedica
Solutions for $130 million (£97 million) cash consideration, with a further $50 million
(£37 million) capital injection into Oxford Biomedica Solutions to fund growth

Expansion of Capacity
•    In January 2021, Oxford Biomedica hosted the Prime Minister, the Rt. Hon Boris Johnson MP,
to formally open the Oxbox manufacturing facility following MHRA approval of four
manufacturing suites

•    Planning permission for redevelopment of the Windrush Innovation Centre was granted in
June 2021, and is planned to provide next generation laboratory facilities; project
anticipated to commence in second half of 2022

Corporate Governance and Organisational Progress
•    Post-period end, Dr. Roch Doliveux assumed the role of Interim CEO of the Company,
simultaneous with the announcement of John Dawson’s decision to retire as CEO after
more than 13 years of service. A process to appoint a new CEO is underway

•    The Company welcomed three new Board members in 2021; Professor Dame Kay Davies,
a world-renowned geneticist and Dr. Lee’s Professor of Anatomy Emeritus at Oxford
University, Dr. Michael Hayden, with decades of industry defining contributions and
achievements, and Ms Catherine Moukheibir, with extensive international experience
in finance, capital markets and life sciences

•    During the period two long-standing Board members also stepped down; Martin Diggle,
Partner at Vulpes Investment Management, stepped down in February and Dr. Andrew
Heath retired from the Board at the AGM in May

•    In April 2022, the Company welcomed Namrata P Patel to the Board as an Independent
Non-Executive Director. Ms Patel brings extensive international experience in manufacturing
and product supply, and ESG
______________

Analyst briefing
Management will be hosting a briefing for analysts via conference call and webcast at 13:00 BST (8:00 ET) today, 20 April 2022.  

A live webcast of the presentation will be available via this link.  

If you would like to dial-in to the call and ask a question during the live Q&A, please email Oxfordbiomedica@consilium-comms.com

______________

Read the Oxford Biomedica plc preliminary results for the year ended 31 December 2021 in full:

Download PDF here

London Stock Exchange website RNS

______________

Notes
Unless otherwise defined, terms used in this announcement shall have the same meaning as those used in the Annual report and accounts.

Enquiries:  


Oxford Biomedica plc:
T: +44 (0)1865 783 000 / E: ir@oxb.com

Stuart Paynter, Chief Financial Officer
Sophia Bolhassan, Head of Investor Relations

Consilium Strategic Communications:
T: +44 (0)20 3709 5700 / E: Oxfordbiomedica@consilium-comms.com

Mary-Jane Elliott / Matthew Neal    

About Oxford Biomedica

Oxford Biomedica (LSE:OXB) is an innovative leading viral vector specialist focused on delivering life changing therapies to patients.

Oxford Biomedica plc and its subsidiaries (the Group) work across key viral vector delivery systems including those based on lentivirus, adeno-associated virus (AAV) and adenovirus, providing innovative solutions to cell and gene therapy biotechnology and biopharma companies for their process development, analytical development and manufacturing needs. Oxford Biomedica has built a sector leading lentiviral vector delivery system, LentiVector® platform, which the Group leverages to develop product candidates in-house, before seeking partners to take the products into clinical trials.

Oxford Biomedica is based across several locations and headquartered in Oxfordshire, UK. In early 2022, the Group established Oxford Biomedica Solutions, a new US based subsidiary AAV manufacturing and innovation business, based near Boston, US.

Oxford Biomedica employs more than 940 people. Further information is available at www.oxb.com.