Oxford Biomedica creates new US wing and launches funding drive
Life sciences firm Oxford Biomedica is to form a new US-based AAV manufacturing and innovation business while also announcing a new investment drive.
Oxford Biomedica US will acquire an 80 per cent ownership interest in newly-formed Oxford Biomedica Solutions following a £97 million cash consideration payable to Homology and a £37 million capital injection into Oxford Biomedica Solutions to fund growth.
Homology will retain a 20 per cent ownership interest in the new company with the deal expected to be completed by the end of quarter one this year.
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Oxford Biomedica is offering retail investors the opportunity to buy shares in the company at 50 pence each as it looks to raise £80m from current, institutional and retail investors.
The PrimaryBid mobile app has secured exclusive access for its members to the retail offer who from today can apply to participate in the scheme which is expected to achieve stock exchange settlement and admission on March 11.
Oxford Biomedica, who will retain a majority board position, say the new company will allow it expand its geographical presence and add technical operational expertise in the US biopharma market.
The Thames Valley life sciences company, which played a key role in the development of the AstraZeneca vaccine, has also agreed a short term loan facility of £64m.
Tim Kelly, chief operating officer of Homology, will join Oxford Biomedica Solutions' AAV Manufacturing and Innovation Business as chief executive officer and chair of its board of directors and will also become a member of Oxford Biomedica's senior executive team.
John Dawson will step down as CEO and remain a board director and company advisor while current Chairman Dr. Roch Doliveux will take on the role on an interim basis.
A process to appoint a new Oxford Biomedica CEO is currently underway.
Dr. Roch Doliveux, chair and interim CEO, said: "Accessing Homology's unique AAV capabilities is a major advancement in Oxford Biomedica's goal to become an innovative global viral vector leader that provides solutions to Cell and Gene Therapy (C>) Biotech and Biopharma companies for their process development and manufacturing needs across key viral vectors.
"Process Development/CMC being one of the most important critical success factors to ensure efficacy, safety and affordability of C>, Oxford Biomedica is in a strong position to enable our customers to bring their new medicines to many more patients and change their lives.
"We look forward to working with Homology's impressive team and uniquely robust processes to achieve world-leadership as a provider of AAV solutions in addition to enhancing our leadership in lentiviral vectors. Having a US base brings us closer to customers, talent, innovation in academia and pools of capital all of which will allow growth and building a market leadership position."
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IP
Oxford Biomedica say the new venture will allow the company to leverage proprietary technologies and IP in AAV to further enhance Oxford Biomedica's platform.
The Oxford life sciences firm will also gain increased manufacturing capacity to build on its existing five manufacturing and R&D facilities following the addition of a process R&D and manufacturing facility in Boston, US, which has 125 technical operations employees.
Arthur Tzianabos, president and chief executive officer of Homology, said : "We chose Oxford Biomedica for its leadership in viral-based manufacturing and prestigious global client base, and we believe that Oxford Biomedica Solutions' AAV Manufacturing and Innovation Business will build upon the strengths of both companies.
"Additionally, the $130 million cash infusion, coupled with the reduction in operating expenses, significantly extends our runway and supports the continued advancement of our programs and genetic medicines platform. We believe our ownership stake in Oxford Biomedica Solutions, continued access to our AAV 'plug and play' manufacturing platform as a preferred customer, and our ability to benefit from any further manufacturing innovations, will be key value drivers for Homology."
