Oxford Biomedica's revenues up, losses down.

Oxford Biomedica (LON: OXB) has released their half-year report today, with shares up slightly, around 3% in early trading.

The Group reported a revenue increase of 26% to £15.7 million and an operating loss reduction of 70% to £2.2 million. Debt refinancing was also completed with improved terms from Oaktree Capital's $55 million facility.

Cash also more than doubled in July thanks to a $10m injection from pharma company Novartis as an upfront part-payment for the supply of leukaemia drug CTL019, which was announced last month.

According to Management, the deal with Novartis for the supply of CTL019 has the potential to bring in more than $100m in revenue for Group over three years, plus an undisclosed royalty amount. It also has the potential to be extended to five years.

Chief Executive John Dawson said these results "validated" their position as a world leader in gene and cell therapy, and also:

"Our strengthened position has not only boosted our partnering discussions but also provides the Group with the financial flexibility to progress our key in-house programmes whilst continuing discussions with suitable collaborators."

Oxford Biomedica's share price this year has regained a lot of the ground it lost in 2015 after its peak in March that year. With the news of the potential boost in revenue, and revenue already rising sharply despite the deal with Novartis, it will be interesting to see what comes of OXB when the product from their flagship deal comes to market.