Edison Issues Outlook on Oxford BioMedica (OXB)

LONDON, UK / ACCESSWIRE / May 10, 2018 / Following the commercial launch in 2017 of partner Novartis’s CAR-T Kymriah (in r/r paediatric ALL), Oxford BioMedica (LSE: OXB) (OTC PINK: OXBDF) (FSE: OXO) has become one of a handful of regulatory approved gene and cell therapy manufacturers worldwide. This validation of its capabilities was most recently demonstrated in signing the £100m+ collaboration with Bioverativ to develop haemophilia gene therapies. We expect OXB to rapidly expand its manufacturing capacity to enable top-line growth. We have reassessed many of our valuation assumptions and now include the partnerships with Immune Design, Orchard and Bioverativ. Moreover, internal asset, OXB-102, will start a Phase II trial shortly. We value OXB at £513m (15.6p/share).

Our increased valuation of OXB is £513m vs £284m. The major source of uplift reflects the inclusion of Bioverativ, Immune Design and Orchard Therapeutics in our valuation. We now model a second CAR-T in the Novartis collaboration and have updated our assumptions for all partnerships and internal assets to reflect changes in the gene and cell therapy sector. Our core drivers remain OXB’s partnerships, which represent 8.9p of our total value, comprising development and bioprocessing revenue, milestones and royalties. Additionally, we have rolled forward our model, updated for net debt and now include a terminal value.

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Dr. Susie Jana, +44 (0)20 3077 5700
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