Release Date: April 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Oxford BioMedica PLC (OXBDF, Financial) achieved an impressive organic revenue growth of 81% in 2024, with total revenues increasing by 44% to GBP128.8 million.
- The company reported a significant improvement in operating EBITDA, narrowing the loss from GBP52.8 million in 2023 to GBP15.3 million in 2024, and achieving a GBP5 million operating EBITDA profit in the second half of 2024.
- Oxford BioMedica PLC (OXBDF) expanded its operational footprint by acquiring a site in France, enhancing its ability to meet growing demand across Europe.
- The company launched the inAAVate platform for better AAV production, which is expected to enhance vector yield and quality.
- Oxford BioMedica PLC (OXBDF) has a strong commercial momentum with contracted client orders reaching GBP186 million in 2024, a 35% increase from the previous year.
Negative Points
- Despite the revenue growth, Oxford BioMedica PLC (OXBDF) still reported an operating EBITDA loss of GBP15.3 million for 2024.
- The company faces potential challenges from US tariffs, which could impact costs and supply chains, although the exact impact remains uncertain.
- There is a risk of delays in early-stage activities due to potential difficulties in accessing funds, which could affect the pipeline.
- The company has a significant exposure to FX fluctuations, with revenues receivable in multiple currencies, which could impact financial performance.
- Oxford BioMedica PLC (OXBDF) postponed investment in Oxbox manufacturing capacity, indicating potential constraints in expanding production capabilities in the short term.
Q & A Highlights
Q: Can you discuss your exposure to tariffs, particularly regarding exports from the UK to the US?
A: Frank Mathias, CEO: We are monitoring the situation closely. We have a site in the US, which positions us well to adapt. We don't export directly to the US; we deliver at the UK facility. The impact of tariffs is expected to be low, and we are prepared to adjust our supply chains if necessary.
Q: Has the market environment changed recently, especially in discussions with biotech customers?
A: Sebastien Ribault, Chief Business Officer: The market is constantly evolving, but we haven't seen significant changes in client discussions. Clients in late-stage development are continuing their programs. Early-stage activities might see some delays, but overall, demand remains strong.
Q: Regarding your guidance for 2026, does the 20% margin target refer to the second half of the year?
A: Lucinda Crabtree, CFO: Yes, the 20% margin target refers to an exit rate by the end of 2026. We are focused on driving continued margin expansion through operational efficiencies and revenue growth.
Q: Is there a difference in the process for using lentiviral vectors for inflammatory diseases compared to oncology?
A: Sebastien Ribault, Chief Business Officer: The process is the same for both indications. The market for inflammatory diseases is significant, and we are well-positioned to develop lentiviruses for this area.
Q: Can you explain the new procurement services line in your accounts? Is it related to tariffs?
A: Lucinda Crabtree, CFO: The procurement services line is separate from tariffs. It provides clients with assurance in sourcing and storage of raw materials, especially for commercial preparation activities. It is not related to over-ordering due to tariffs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
