Gene and cell therapy group Oxford Biomedica plc (LSE: OXB) has announced interim results for the six months ended 30 June 2019.
Overall revenues were £32.1 million versus £35.3 million for the same period in 2018. While its bioprocessing and commercial development revenues increased 23% over the same period in the previous year, the 9% decrease in overall revenue reflects the significant licence income received in 2018.
Operating EBITDA1 loss and operating loss of £1.4 million and £6.1 million respectively were incurred due to lower revenues and increased expenditure to prepare the company for further growth in bioprocessing volumes.
Earlier in May, Novo Holdings invested £53.5 million in the Oxford Biomedica representing 10.1% of the outstanding shares after the capital increase. The proceeds from the transaction were used to fully repay the debt facility of £43.6 million ($55 million) with Oaktree Capital Management in addition to providing funding to further develop it’s platform and product portfolio.
The company’s OxBox bioprocessing facility construction is progressing as planned with expenditure increasing to £14.9 million in H1 2019 compared to £6.0 million in H1 2018, the cost of which was partly offset by £2.0 million of Innovate grant funding received to support the UK’s efforts to produce viral vectors and ensure adequate supply to service expected demand.
Commenting on the company’s interim results, John Dawson, Oxford Biomedica’s Chief Executive Officer, said: “Oxford Biomedica has continued to make strong progress in first half of 2019 building on the existing and new partnerships signed in 2018. We are delighted with the 23% growth in bioprocessing and commercial development revenues and also the new collaborations we have signed with Santen and Microsoft.
Our expansion to meet the fast growing demand in the cell and gene therapy arena is progressing as planned and we expect further deals to be signed this year. The addition of Novo Holdings as a shareholder and the paying down of the Oaktree loan puts the Group on a far stronger footing to maximise the opportunity we see in front of us.”