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Oxford Biomedica (LON:OXB) reported first-half revenue of £80.2 million, up 10% at constant currency, driven by a 20% surge in manufacturing revenue. The company reiterated its 2026 revenue guidance of £180 million–£200 million and maintained targets for double-digit EBITDA margins by 2027, signaling continued progress toward profitability despite a £7.6 million impairment charge on its French site.

Oxford Biomedica's first-half results showed robust growth, with revenue rising 10% to £80.2 million at constant currency, primarily fueled by a 20% increase in manufacturing revenue from clinical and commercial batches. Adjusted EBITDA loss narrowed to £2.5 million, though a £7.6 million impairment charge on its French site offset some gains. The company added 22 new clients, expanded active programs to 60, and increased its revenue backlog to £299 million by August.

Management maintained its 2026 revenue guidance of £180 million–£200 million, with approximately £168 million of revenue secured through contracted client orders. The commercial pipeline reached $730 million at the half-year mark, up 30% year-over-year, while AAV programs contributed £289 million to the pipeline, surpassing lentiviral-vector opportunities. CEO Frank Mathias highlighted growing U.S. market share, with the region accounting for 40% of pipeline opportunities in Q3 2026.

The company's strategic shift toward staged client contracts, rather than end-to-end packages, aims to enhance cash flow predictability but may delay revenue recognition. CFO Lucy Crabtree noted timing-related factors, including client-program deferrals and delayed GMP readiness at its Durham site, which added six months to operational timelines. Despite these challenges, OXB expects mid-single-digit EBITDA margins by year-end and aims for at least double-digit margins in 2027.

Risks include the impairment charge on its French site due to lower near-term revenue expectations and delays in GMP readiness. Opportunities lie in expanding AAV programs and U.S. market share, with nine programs reaching late-stage development or commercial status. The company also addressed concerns about CAR-T trial fatalities, emphasizing no issues in its programs, though only two autoimmune therapies are included in its £500 million 2030 revenue target.

Oxford Biomedica's 2026 revenue guidance remains unchanged at £180 million–£200 million. The company expects GMP operational readiness at its Durham site to be restored by year-end, with late-stage programs targeting biologics license application submissions by 2027.

Oxford Biomedica's H1 2026 results highlight strong revenue growth and client expansion, supporting its 2030 £500 million target. However, operational risks like the French site impairment and GMP delays, along with timing-related revenue deferrals, could temper near-term margin improvements. The shift to staged client contracts may enhance cash flow predictability but could delay revenue recognition.

Topics: CellAndGeneTherapy, CDMO, Biotechnology, Healthcare, EarningsReport, FinancialResults, RevenueGrowth, EBITDA

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Source: Yahoo Finance