Oxford Biomedica plans £60 million equity raise for global expansion

LONDON - Oxford Biomedica plc (LSE:OXB) announced today its intention to raise approximately £60 million through a placing of new ordinary shares to institutional investors to fund expansion of its global cell and gene therapy manufacturing network.

The proceeds will primarily support investment in commercial-scale manufacturing capabilities in the United States, including facility modifications, equipment procurement, and quality-control readiness. The company also plans to add commercial-scale drug product capability in the US to create a complete end-to-end offering alongside drug substance manufacturing.

Oxford Biomedica expects the strategic investments to accelerate revenue growth, with fiscal year 2026 revenues projected to reach between £220-240 million. The company forecasts 25-30% year-on-year revenue growth in both 2027 and 2028, exceeding prior expectations and outpacing the broader market.

"These investments will support above-market growth, stronger profitability and an increased share of the growing viral vector market," said Dr. Frank Mathias, Chief Executive Officer of Oxford Biomedica.

The company’s fiscal year 2025 guidance remains unchanged, with expected revenue of £160-170 million and operating EBITDA profitability in the low single-digit millions. Operating EBITDA margin is projected to exceed 10% in FY2026 and reach at least 20% for FY2027, with long-term potential to approach 30% within five to six years.

The placing will be conducted through an accelerated bookbuild launched immediately following the announcement. Jefferies International Limited is acting as global coordinator and joint bookrunner, with RBC Europe Limited serving as joint bookrunner.

Settlement and admission of the placing shares to the London Stock Exchange is expected to take place on or before August 20, 2025.

According to the press release statement, the cell and gene therapy sector continues to show strong fundamentals, with 2,210 therapies in the clinical pipeline worldwide, up from 2,068 in the second quarter of 2024.

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