Company News 

Oxford BioMedica’s borrowings cloud growth opportunities

Oxford BioMedica’s borrowings cloud growth opportunities

Oxford BioMedica (OXB) is not unlike many of its biotech peers in that it is lossmaking and has recently tapped the stock market, for another £20.5m. But that is not why we remain uncomfortable about holding the shares. The group remains on the wrong side of the ledger, although the loss position has narrowed thanks to a big increase in revenue, while the new cash has stiffened the balance sheet and proved-up shareholder support. What is concerning is Oxford BioMedica’s year-end net debt position of £22.5m, coupled with £10.8m paid out in annual interest charges (that's not a misprint), and the fact that internal R&D costs are likely to increase now the group is moving its own drugs into the clinic.

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now