6th May 2020 15:07
(Alliance News) - Oxford Biomedica PLC on Wednesday said it sunk to a large loss in 2019 but is excited for the future due to its bioprocessing revenue growth.
In 2019, the gene and cell therapy company recorded a pretax loss of GBP20.9 million compared to a GBP5.0 million profit in 2018.
Revenue was down 4.0% year-on-year in 2019 to GBP64.1 million from GBP66.8 million. The company noted its bioprocessing/commercial development revenue rose 17% in 2019 to GBP47.3 million.
"The main contributor to growth has been the revenues generated from increased commercial development services provided to new customers Cystic Fibrosis Consortium, Axovant and Santen, as well as growth in Novartis commercial bioprocessing volumes," Oxford Biomedica said.
Oxford Biomedica's R&D costs increased 25% to GBP22.5 million from GBP18.0 million. Bioprocessing costs jumped to GBP7.4 million from GBP1.2 million and administrative expenses were up 61% to GBP11.9 million.
The company also made a GBP5.0 million gain in 2018 on a revaluation of investments, but did not repeat the gain in 2019.
Chief Executive John Dawson said: "Oxford Biomedica made good progress during 2019, extending our commercial supply agreement with Novartis for another five years, establishing a new partnership with Santen and delivering our new facilities expansion on target.
"Beyond the period end we also signed a new major new agreement with Juno Therapeutics/Bristol Myers Squibb. The cell and gene therapy sector continues to grow rapidly and we remain at the forefront of its innovation. Our new collaboration with Microsoft is harnessing the power of artificial intelligence to further boost the efficiency of our world-leading LentiVector delivery platform, as we continue the process to industrialise lentiviral vector development and manufacture."
Dawson added: "We are building an exciting business, and with the significant investment by Novo Holdings in 2019, our simplified Statement of financial position places us in a stronger position to realise the potential of our world-leading technology."
Shares in Oxford Biomedica were down 3.0% in London on Wednesday afternoon at 705.00 pence each.
By Paul McGowan; [email protected]
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