Oxford Biomedica Plc · LSE:OXB
Oxford Biomedica — H1 2023 Earnings Presentation
28 slides from Oxford Biomedica's earnings presentation, Sep 20, 2023
Slide 1: Creating a leading global quality and innovation-led CDMO in cell and gene therapy
Creating a leading global quality and innovation-led CDMO in cell and gene therapy Interim results for the six months ended 30 June 2023 September 2023
Slide 2: Forward looking statements
Forward looking statements This presentation does not constitute an offer to sell or a solicitation of offers to buy Ordinary Shares (the “Securities”). Although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and that the opinions expressed are fair
Slide 3: Delivering long-term sustainable growth
Delivering long-term sustainable growth 3 Pillar Plan 1 2 3 Strong Clear path towards implementation Clear strategy profitability plan 3
Slide 4: Clear strategy: accelerating towards becoming the leading pure-play CDMO in cell and gene therapy
1 Clear strategy: accelerating towards becoming the leading pure-play CDMO in cell and gene therapy Total Addressable Market for outsourced viral vector supply is expected to be $3.8bn by 2028 • Transformation to a pure-play CDMO in an attractive high-growth market # of OXB 2028 TAM, pipeline growth
Slide 5: A strong implementation plan that aligns operations with strategy shows first significant results
2 A strong implementation plan that aligns operations with strategy shows first significant results • Significantly expanded commercial team to leverage the growing pipeline of opportunities • Adapting structure and processes for improved efficiency and scalability Oxford, UK • Planned introduction
Slide 6: A clear pathway to profitability
3 A clear pathway to profitability • Restructuring and cost reductions to lower cost base by c.£30m per year • Operating as one company with multi-sites to better serve clients ANTICIPATING and creating synergies MID-TERM • Focus is on reaching profitability; broadly EBITDA breakeven in 2024 GROWTH
Slide 7: A new commercial strategy to fuel our transformation
A new commercial strategy to fuel our transformation 7
Slide 8: Pipeline growth is fuelled by more clients and more programmes from existing clients
Pipeline growth is fuelled by more clients and more programmes from existing clients • CDMO pipeline growing, diversifying and converting • More client orders signed at the end of July than in the whole of 2022 (excluding COVID-19 vaccine manufacturing) • Current contracted value signed in 2023: c.£
Slide 9: We've signed more client orders so far in 2023 than during the whole of 2022
We’ve signed more client orders so far in 2023 than during the whole of 2022 Sep 2022 Sep 2023 OXB CLIENT PROGRAMMES 28 OXB CLIENT PROGRAMMES 41 • Portfolio of 41 programmes with 24 current clients; diverse range of clients and Cell line, process development Cell line, process development & pilot sc
Slide 10: Pipeline of potential opportunities grew significantly with all segments increasing
Pipeline of potential opportunities grew significantly with all segments increasing, including early/late, platform/non platform Commercial team has been restructured to ensure they are sufficiently resourced and optimally positioned to deliver the expected pipeline growth • Significant changes over
Slide 11: We have proven and differentiated platform technologies
We have proven and differentiated platform technologies LentiVector™ platform AAV platform Strong track • >25 years of lentiviral vector experience • >8 years of AAV vector experience record • >340 GMP batches successfully • 45 GMP batches successfully released released (22 since March 2022). • 12 m
Slide 12: We continue to support successful C> programmes through late phase clinical studies
We continue to support successful C> programmes through late phase clinical studies and start new early phase programmes Illustrative examples: • Initial agreement signed January 2022 • Agreement signed September 2023 • Agreement signed June 2022 (previously anonymised) • DSG3-CAART - Phase I clin
Slide 13: Plans to expand our global footprint with the proposed acquisition of ABL Europe
Plans to expand our global footprint and enhance our capabilities with the proposed acquisition of ABL Europe WHAT WOULD THIS ADD? THE NEW OXB NETWORK Track Multiple Focused Expanded Investment in Complementary record platform CDMO capabilities commercial capabilities experience Business and capacit
Slide 14: Oxford Biomedica Pathway to Profitability
Oxford Biomedica Pathway to Profitability 14
Slide 15: H1 2023: Double-digit growth in lentiviral vector revenues and a full six months of OXB Solutions
H1 2023: Double-digit growth in lentiviral vector revenues and a full six months of revenues from Oxford Biomedica Solutions 1• Strong double-digit growth in the core business (non-COVID-19 vaccine revenues) in H1 2023 due to underlying growth in lentiviral vectors and a full six months of revenues
Slide 16: Near-term financial outlook
Near-term financial outlook 1. Revenue • Full-year forecast expected to be c.£90m • Double-digit growth in bioprocessing and commercial development in H2 2023 v H1 2023, driven by double-digit growth in lentiviral vector manufacturing & development revenues in H2 2023 • 90% of forecasted H2 2023 rev
Slide 17: Medium term guidance – underpinned by significant tailwinds
Medium term guidance – underpinned by significant tailwinds 1 DOUBLING REVENUES BY FY26 2 OPERATING EBITDA MARGIN ~30% 3-YEAR REVENUE CAGR >20% BY FY26 Fast growing end-markets Balance sheet strength and ~£30m annualised savings Growing pipeline of new opportunities Tangible and robust order book an
Slide 18: Taking Oxford Biomedica from "Good to Great"
Taking Oxford Biomedica from “Good to Great” Attract, develop and retain highly motivated people Invest to Operate a better serve client centric clients organisation Generate Deliver excellent increasing client centric returns experiences Expand existing partnerships and attract new clients 18
Slide 19: Q&A
monica Biomedica Q&A 19
Slide 20: Contact Us
Contact Us Oxford Biomedica plc Windrush Court Transport Way Oxford OX4 6LT Stuart Paynter Chief Financial Officer Sophia Bolhassan VP, Corporate Affairs & Investor Relations IR@oxb.com www.oxb.com 20
Slide 21: Appendix
Appendix 21
Slide 22: Proposed acquisition of ABL Europe from Institut Mérieux
Proposed acquisition of ABL Europe from Institut Mérieux (“IM”) IM intention to become c. 10% shareholder in OXB Transaction Rationale Transaction Structure €5m • EV of €5m ✓ OXB to obtain multi viral vector CDMO capabilities across EU, US & UK Stage 1 • IM to inject €10m of cash into ABL €10m • OXB
Slide 23: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income 23
Slide 24: Group Balance Sheet
Group Balance Sheet 30 June 31 December 2023 2022 Unaudited Audited Notes £7000 £000 Assets Non-current assets Intangible assets & Goodwill 7 97,884 405,888 Property, plant and equipment 8 120,554 133,780 Trade and other receivables 10 4,931 5,010 223,369 244,676 Current assets Inventory 9 13,542 12
Slide 25: Group Statement of Cash Flows
Group Statement of Cash Flows 25
Slide 26: Revenue and Operating EBITDA
Revenue and Operating EBITDA1 Revenue (£m) 100 80 60 40 20 0 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 Bioprocessing & commercial development Licences, incentives, royalties & grants Operating EBITDA1 (£m)
Slide 27: End-to-end capabilities enable us to be the chosen partner from discovery to commercialisation
Oxford Biomedica’s end-to-end capabilities enable us to be the chosen partner for companies from discovery to commercialisation Illustrative OXB Revenue Streams from Viral Vector Development Process Cell Line and Early & Late Process Pilot Scale Commercial Supply Process Phase Clinical Characterisat
Slide 28: ESG H1 2023 Achievements
ESG H1 2023 Achievements Oxford Biomedica’s ESG strategy is focused on five pillars: People; Community; Environment; Innovation and Supply Chain. People Community Environment Innovation Supply Chain Events have been held to The Group donated Climate-based risk Support has continued for The Group’s s