Oxford Biomedica (OXB) is one of few global lentiviral vector manufacturers with capacity in a thriving cell and gene therapy industry, and its FY20 results highlight strong operational progress throughout the business. OXB boasts a diversified revenue base; and FY20 benefited from new deals including Juno/BMS covering multiple CAR-T programmes, as well as increased bioprocessing and commercial development activities for several customers including Novartis and the AZN COVID-19 vaccine. Post period, OXB upgraded its financial guidance for the COVID-19 vaccine supply agreement with AZN to in excess of £100m by end FY21. In the long term, much value resides in OXB’s ability to develop and monetise its own CGT assets, which are progressing towards the clinic. Bolt on acquisitions that complement the pipeline or enhance technology capabilities represent further opportunities. We value OXB at £846m or 1,027p/share.
