Supply to meet demand

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 KymriahPPPTM in 2017PP and was followed post-period end by a collaboration and licence agreement (adopting a similar structure) with Bioverativ Inc (BIVV). Investment in manufacturing is being made to increase capacity and meet demand from further such deals.

• 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.
• FY results: Growth in gross income (sales plus all other income) was key, rising 28% to £39.4m (£30.8m). This included grant income of £2m and licensing fees from Novartis (both original and new deals). Total operating costs increased 12% to -£46.4m (-£41.2m). The EBITDA loss was greatly reduced at -£2.6m (-£6.8m).
• Placing: Post period-end, OXB raised £20.5m gross (ca.£19.3m net) through the issue of 174.4m new Ordinary 1p shares, at a price of 11.75p per share, with existing and new shareholders in the UK and the US. The stated use of proceeds is investment in new facilities to meet demand for vector bioprocessing.
• Risks: The mid-term sales model, plus the ability to pay off debt, are dependent on successful progress of partners’ clinical trials and commercialisation of LentiVector-enabled products, for receipt of bioprocessing milestones and royalty payments. All gene-therapy companies are subject to significant clinical risk.
• Investment summary: OXB has transitioned to a commercial-stage company. Heavy, ongoing, investment in state-of-the-art GMP manufacturing facilities for production of gene therapy vector has resulted in commercial supply agreements with Novartis and a licence agreement with BIVV, on top of existing partnerships. The next value inflection points include the completion of Orchard Therapeutics’ pivotal trial and further approvals of Novartis’ Kymriah.