UK's Oxford BioMedica H1 revenue rises on increased manufacturing

Overview

• UK cell and gene therapy CDMO's H1 revenue rose 9% yr/yr, matching analyst estimate

• Adjusted operating EBITDA loss narrowed to £2.5 mln from £3.9 mln a year earlier

• Gross margin fell to 37% from 43% due to product and client mix changes

Outlook

• Oxford BioMedica reiterates FY 2026 constant currency revenue guidance of £180–200 mln

• Company expects FY 2026 EBITDA margin to be mid-single-digit % excluding one-off costs

• Oxford BioMedica maintains FY 2027 revenue growth guidance of 25-30% year-on-year

Result Drivers

• MANUFACTURING ACTIVITY - Revenue growth was driven by increased GMP manufacturing for clinical-stage clients and clients preparing for commercial launch

• NEW CLIENTS - Record number of new client wins expanded the portfolio and future revenue base

• PRODUCT AND CLIENT MIX - Gross margin decline attributed to changes in product and client mix, including higher mix of lower-margin plasmid revenues and reduced one-off cancellation revenues

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Oxford Biomedica PLC is GBp780.00, about 67.7% above its September 21 closing price of GBp465.00

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)