Bioverativ deal – establishes structure

Oxford BioMedica (OXB) is a specialist advanced therapy lentivirus-based vector biopharma company. It offers vector manufacturing and development services and is developing its own proprietary drug candidates. In addition to LentiVector® service contracts, OXB will receive royalties on commercial therapies developed with its platform. This deal structure was established with Novartis for KymriahPPPTMPP, the first approved CAR-T therapy, and has now been followed by a collaboration and licence agreement adopting a similar structure with Bioverativ Inc (BIVV), for the development and potential clinical supply of vector to treat haemophilia.

• Strategy: OXB has four strategic objectives: delivery of process development services that embed its technology in partners’ commercial products; commercial manufacture of lentiviral vector; out-licensing of proprietary candidates; and investment in R&D and the LentiVector platform.
• Bioverativ deal: OXB has signed a collaboration and licence agreement with BIVV for the development and potential manufacture of vectors for haemophilia gene therapy. OXB received $5m up-front and is eligible to receive milestone payments of up to $100m, thus establishing a ‘normal’ deal structure.
• Bioverativ: BIVV is a US-based specialist haemophilia and rare blood disorders biopharma company. However, as announced in January, it is in the process of being acquired by Sanofi for $11.6bn. 2017 sales were $1.1bn from two approved drugs. Its pipeline includes lentivirus-based gene therapies for haemophilia.
• Manufacture: Although OXB has made significant investment recently in manufacturing facilities, this deal, together with existing supply deals with Novartis and Orchard Therapeutics, will utilise most of OXB’s capacity, such that any further deals are likely to require an increase in manufacturing capacity.
• Investment summary: OXB is at a very interesting juncture. Heavy investment in state-of-the-art GMP manufacturing facilities for production of gene therapy vector has resulted in supply agreements with Novartis and Bioverativ, on top of existing partnerships, positioning the group on the road to significant bioprocessing service income, milestones, and royalties.