London, UK, 5 October 2020

Oxford Biomedica (OXB): Vector innovation key to cell and gene evolution

Oxford Biomedica (OXB) is a pioneer and global leader in the development and manufacture of commercial-scale lentiviral vectors (LVVs), a critical component of cell and gene therapies (CGTs). An investment in OXB gives a broad exposure to this emergent industry. During the past 12 months, OXB has effectively doubled its CDMO partner programmes to 20, while broadening its own gene therapy R&D portfolio offering. Partner Axovant expects to report six-month efficacy data on AXO-Lenti-PD (end 2020), durability of its effect in Parkinson's disease is key. Longevity to the OXB investment case rests on the growing diversity of its revenue streams and maintaining its position as an innovator. We expect OXB to lead the industrialisation of LVV manufacturing. This is critical to opening up new treatment areas where much higher vector quantities are required, especially for in vivo treatments. We value OXB at £711m.

We increase our valuation of OXB to £711m or 892p/share, vs £709m previously. The major source of uplift reflects inclusion of the Beam deal and AZN COVID-19 vaccine. Under the Novartis collaboration we add a third indication for Kymriah (r/r follicular lymphoma) and a third CAR-T programme. We have pushed out the AXO-Lenti-PD launch to 2024 to reflect the status of the ongoing Phase I/II trial. We also rolled our model forward and updated FX and net cash of £50.6m (30 June).  
 

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