Oxford Biomedica Loss Narrows, Revenue Grows In Transformational 2017

15th Mar 2018 11:45

LONDON (Alliance News) - Gene therapy firm Oxford Biomedica PLC said Thursday its 2017 loss narrowed after revenue grew significantly on product progress and finance costs fell in what it termed a "transformational" year.

In 2017, pretax loss narrowed to GBP11.8 million from GBP20.3 million the year prior. This was after revenue rose to GBP37.6 million from GBP27.8 million the year before.

Profit performance - as well as benefiting from revenue growth - was also helped by a sharp fall in finance costs to GBP6.1 million from GBP9.0 million the year prior.

This was after Oxford Biomedica refinanced a USD50 million loan opened in 2015 for a "significantly improved" USD55 million loan with Oaktree Capital Management. Oxford Biomedica did incur a GBP3.9 million charge associated with the termination of its previous debt facility.

At the end of 2017, Oxford Biomedica had GBP14.3 million in cash, down from GBP15.3 million the year before. This was after it raised GBP20.5 million through a placing during the year.

"2017 has been a transformational year for Oxford BioMedica, underlined by the first ever approval of a LentiVector-Enabled product of Novartis, Kymriah," Oxford Biomedica Chief Executive Officer John Dawson said.

"This milestone was rapidly followed by a further US filing in an additional oncology indication, and filings for both indications in Europe."

"Building on our stronger operational and financial foundations, we established a USD105 million collaboration with Bioverativ to provide access to our world-leading technology and we are making good progress in our other partnering discussions," Dawson added. "In the coming year, we intend to build on this momentum, broadening our portfolio of collaborations and partnering our proprietary programmes."

In February, Oxford Biomedica signed a "major" agreement with Bioverativ Inc for developing and making lentiviral vectors to treat haemophilia.

Under the deal, Oxford BioMedica will receive an upfront USD5.0 million payment. Oxford BioMedica will also be eligible to receive milestone payment which have a potential value of USD100 million. It will also be entitled to undisclosed royalties on net sales of Bioverativ's lentiviral vector haemophilia products.

"Having established the world-class LentiVector platform," Dawson said, "Oxford BioMedica is delivering on its promise, enabling revolutionary gene and cell therapies for patients around the world."

In a separate announcement, Oxford Biomedica announced it had appointed Heather Preston as non-executive director with immediate effect. Preston currently serves as a partner and managing director of biotechnology venture capital firm TPG Biotech.

"Oxford BioMedica's LentiVector Enabled technology makes the group a leader in the delivery of gene and cell therapies," Preston said. "This has been clinically and commercially validated by partners including Novartis, Sanofi, Orchard Therapeutics and, most recently Bioverativ. I am excited by the prospects for the group which is at the forefront of what is a gene and cell therapy revolution, and I look forward to working with the team."

Shares in Oxford Biomedica were 1.8% lower at 12.42 pence on Thursday.

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