Following the commercial launch in 2017 of partner Novartis’s CAR-T Kymriah (in r/r paediatric ALL), Oxford BioMedica plc (LON:OXB) 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).
Top-line growth the focus as market expands
The global cell and gene therapy market is expanding rapidly as evidenced by the first approvals for both ex vivo (chimeric antigen receptor T-cells [CAR-Ts] Kymriah and Yescarta) and in vivo (Strimvelis for ADA-SCID and Luxturna for RPE65 inherited retinal disease) gene therapy products. As a leading supplier of lentiviral products for gene therapy, OXB is well placed to benefit and recently completed a net £19.3m capital raise to fund the construction of additional manufacturing capacity. We expect the new facilities to be commercially operational by end 2019.
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