The message has changed at Oxford Biomedica (OXB) as the biotech group responds to growing opportunities. This time last year it had just signed a potentially game-changing, three-year licensing contract with Swiss giant Novartis (NOVN) to help develop its CART-19 leukaemia drug. Perhaps through sheer over-exuberance, the group said if it was able to keep spending where it was - around £12m a year - it could break even in 2016 and even turn a small profit in 2017.
Now that looks unlikely, albeit for encouraging reasons. The group spent a whopping £30m last year, which included drawing down debt facilities by around £26m and tapping investors for a further £8.1m in a post-period-end equity placing. However, the accelerated capital commitment simply reflects that Oxford Biomedica now has more opportunities than ever before, according to chief executive John Dawson. Following the Novartis deal, more potential partners have come knocking, which means the group has invested heavily in its own technology and manufacturing facilities to keep up with anticipated demand.
Forecasts are due for review, but analysts at N+1 Singer have pencilled in losses of £14m in 2016, leading to negative EPS of 0.4p, compared with a loss of 0.5p in 2015.
| OXFORD BIOMEDICA (OXB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 6.0p | MARKET VALUE: | £162m | |
| TOUCH: | 5.9-6.2p | 12-MONTH HIGH: | 12p | LOW: 5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 0.4p | NET DEBT: | 164% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 7.7 | -14.3 | -1.4 | nil |
| 2012 | 7.8 | -10.3 | -0.8 | nil |
| 2013 | 5.4 | -12.8 | -0.8 | nil |
| 2014 | 13.6 | -10.8 | -0.4 | nil |
| 2015 | 15.9 | -17.0 | -0.5 | nil |
| % change | +17 | - | - | - |
