In recent months, the name Oxford Biomedica (OXB) has been closely linked with the Oxford University/AstraZeneca Covid-19 vaccine trials. The gene- and cell-therapy specialist has signed a three-year master supply and development agreement with AstraZeneca for the large-scale manufacture of the potential inoculation, and the pharma giant has paid Oxford Biomedica an upfront £15m capacity reservation fee. If the vaccine programme continues, it could receive additional revenues of more than £35m through to the end of 2021.
For now, we cannot know if or when a vaccine will be delivered. But hopes are sky-high – as was evident earlier in September, when Oxford Biomedica’s shares slipped on the news that the Oxford trials had paused for a review of safety data after possible adverse effects in a participant. They have since resumed in the UK.
In any case, Oxford Biomedica’s chief executive John Dawson emphasised that the vaccine work is not imposing on the group’s other operations – helped by the fact that its new Oxbox manufacturing facility comprises 84,000 sq. ft. Other partnerships underway include a tie-up with Juno Therapeutics/ Bristol Myers Squibb, signed in March, with £7.8m paid up front and up to $217m (£167m) payable over time.
Half-year revenues were lifted by ongoing growth in bioprocessing and commercial development. Oxbox-related costs kept the group in the red, but operating losses narrowed from £6.1m to £5.8m.
Broker Panmure Gordon expects adjusted losses per shares of 4.1p in 2020, moving to EPS of 11.3p for 2021.
| OXFORD BIOMEDICA (OXB) | ||||
| ORD PRICE: | 850p | MARKET VALUE: | £ 698m | |
| TOUCH: | 835-865p | 12-MONTH HIGH: | 400p | LOW: 873p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 133p | NET CASH: | £40m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 32.1 | -12.1 | -14.8 | 0.0 |
| 2020 | 34.0 | -6.1 | -8.7 | 0.0 |
| % change | +6 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
