Oxford Biomedica posts strong revenue growth in first half results

Oxford Biomedica has maintained its 2024 earnings outlook after reporting strong revenue growth in the first half of the year.

The gene and cell therapy company, which last week changed its name to OXB, saw its total revenue rise 18 per cent year-on-year to £50.8m for the six months ended June 30.

The London-listed company also saw organic revenue growth of 38 percent, which the group attributed to “higher levels of manufacturing and business development activity.”

This was helped in part by OXB France following its acquisition of ABL Europe in January 2024, with total revenues of £5.7m in the first half.

However, the company saw its operating profit before interest, tax, depreciation and amortisation (EBITDA) fall to £20.3m from £33.7m a year earlier.

The company reaffirmed its forecast for annual total revenue growth of between £126 million and £134 million.

The group also projected a compound annual growth rate of more than 35 percent for revenue between 2023 and 2026.

It also anticipates a low double-digit loss in operating EBITDA for the year.

This is due to the acquisition of OXB France and “investment in talent to support increased late-stage client activity in 2025.”

Before Covid, the Oxford University spin-out was already making progress in the AIM market, developing drugs to treat Parkinson’s disease.

But when the pandemic hit, the company stepped up to the plate and produced tens of millions of vaccine doses for AstraZeneca.

Manufacturing was so successful that the company, now listed on the FTSE 250, raised its revenue expectations for the drug in 2021 from £50m to £100m.

He is now focusing on developing adeno-associated virus vectors, a method of introducing genetic material into cells to treat certain human diseases.

Neil Shah, CEO of Edison Group, added: ‘Overall, the company’s commercial momentum, strategic acquisitions and continued customer demand support a positive outlook for sustained growth in the cell and gene therapy sector.

‘The acquisition of OXB France and cost control efforts are contributing to operational efficiency, positioning the group for long-term growth despite short-term financial challenges.’

OXB shares fell 0.42 percent to 355.5 pence in morning trading on Monday.