Novartis’ progress towards the commercial launch of its novel cancer therapy CTL019 has given Oxford BioMedica (OXB) a boost. The group makes the delivery mechanism for the Swiss giant’s drug and is set to receive royalty payments – of an unknown amount – once CTL019 starts making money.
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While Novartis’ progress is certainly good news for OXB, it is somewhat risky that the group is so reliant on its partner’s success. Another level of risk added by the group’s financial strain. OXB recently took out a $55m loan with a 9 per cent interest. It will be used to repay the group’s old debt from Oberland Capital which required the group to carry at least $10m of cash.
