FTSE: Oxford Biomedica sees revenue drop as COVID vaccine demand drops

Oxford Biomedica has been hit by the lack of demand for COVID vaccines. Photo: Hannah Beier/Reuters

Oxford Biomedica (OXB.L) reported a revenue loss in the first half of the year as demand for COVID vaccines slumps.

The British biotech firm saw revenue drop by more than 20% to £64m in the six months to June 30, down from £81.3m.

“We have made significant strategic and operational progress towards our goal of becoming a global viral vector leader. In the first half of 2022 we achieved double digit revenue growth in our core business and since the start of the year have signed numerous new or expanded partnership deals,” chair and interim CEO Roch Doliveux said.

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“Oxford Biomedica is in an excellent position to achieve long-term future profitable growth as a leading partner of choice to deliver life-saving cell and gene therapies to patients.”

COVID cases in the UK hit their lowest level in 11 months in July, according to the Office for National Statistics.

The vaccine maker also reported an operating EBITDA loss and operating loss of £5.8m and £19.2m respectively, which compares against profits in the same period of 2021.

Oxford Biomedica said this included one-off acquisition-related due diligence costs of £5.1m relating to the transaction with Homology Medicines to establish Oxford Biomedica Solutions.

It also said it had expanded customer base by more than 70%, currently working on more than 20 programmes, with a “robust new business pipeline” across all key vector types.

The biotech group signed a new three-year development Agreement with AstraZeneca to facilitate potential future manufacturing opportunities for the COVID vaccine.

Meanwhile, subsidiary Oxford Biomedica Solutions has signed a deal with an unnamed new partner, for an undisclosed sum.

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The deal will give this unnamed, US-based, private biotechnology firm access to Oxford Biomedica Solutions’ process and manufacturing platform.

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“This agreement marks a very important step towards achieving our strategic objective of becoming a global viral vector leader across all key vector types, delivering life changing therapies to patients,” Doliveux said.

Under the agreement, Oxford Biomedica Solutions, which focuses on adeno-associated virus manufacturing and innovation business, will receive payments relating to the full scope of process development.

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