19th Nov 2013 10:07
LONDON (Alliance News) - Oxford Biomedica PLC Tuesday said it has signed a GBP5 million secured loan facility agreement with its largest shareholder, which it will use for general working purposes.
In a trading update, the company said it had a net cash balance of GBP3.6 million at the end of October, so the new loan facility gives it a lot more financial flexibility for the next year as it tries to grow and develop new revenue streams.
The loan facility has been provided by the Vulpes Life Sciences Fund and can be drawn down in tranches of GBP1 million or more any time from January 1 until 10 days before the facility matures Decmber 31, 2014. The loan is secured against certain Oxford Biomedica intellectual property.
"We have tight fiscal controls in place and a GBP5 million loan from Vulpes will give us further flexibility to deliver on our operational objectives," John Dawson, chief executive of the gene-based biopharmaceutical company said in a statement.
"With important RetinoSta data expected in 2014, a revenue-generating manufacturing alliance and ample opportunity to capitalise on our capabilities in this area, as well as significant conditional project funding from the UK Government, we remain confident in our ability to bring further revenue and growth into the business," he added.
"As with any biotechnology business, cash reserves are critical in order for Oxford BioMedica to maximise the potential of its state-of-the-art technology. We are pleased to be in a position to provide a non-dilutive funding solution during what we believe is a highly exciting period in the Company's evolution, and we look forward to further progress ahead," said Vulpes founder and Oxford Biomedica non-executive Director Martin Diggle.
The company in September won a GBP7.1 million award from the UK Government to support the development of a centre of excellence in Oxford for specialist manufacture of gene-based therapies.
Its main platform is the LentiVector platform, and it has several potential gene-therapy treatments under development.
"During the rest of 2013 and 2014, revenues are expected to be generated from intellectual property, development and manufacturing alliances and a potential significant option fee that may arise should Sanofi choose to exercise its option over RetinoStat," it said in its trading update.
RetinoStat is being developed as a gene-based treatment for age-related macular degeneration, an eye disease that leads to loss of central vision and leaving only peripheral vision intact.
Oxford Biomedica shares were up 4% at 2.61 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Oxford Biomedica