Oxford BioMedica returns to profit as U.S. expansion and major pharma partnerships boost outlook

Oxford BioMedica (LSE:OXB) reported strong performance in 2025, with revenue rising 33% on a constant-currency basis to £170.9 million and the business returning to positive Operating EBITDA. Growth was driven by expanding demand for manufacturing, development and procurement services. Profitability improved significantly during the year, while net cash increased to £55.4 million. A larger backlog of contracted revenue also improved visibility heading into 2026. During the period, the company strengthened its manufacturing capacity through the acquisition of an FDA-approved viral vector facility in Durham, North Carolina, enhancing its ability to support late-stage and commercial programmes.

For 2026, management expects revenues to reach between £220 million and £240 million, with an Operating EBITDA margin of around 10%. Performance is anticipated to be weighted toward the second half of the year as newly added capacity begins contributing to production. The company has also secured new and expanded partnerships, including a multi-year supply agreement with Bristol Myers Squibb and a licensing and option agreement with Australia’s VVMF. These developments reinforce Oxford BioMedica’s position as a leading viral vector contract development and manufacturing organisation (CDMO) and support its strategy to deliver sustained double-digit revenue growth alongside improving margins over the medium term.

The company’s outlook remains partly constrained by underlying financial challenges, including ongoing losses, negative cash flow and relatively high leverage, despite the recent revenue growth. Technical indicators remain supportive, reflecting a strong upward price trend and positive MACD signals, although elevated RSI and stochastic readings suggest the shares may be overbought in the near term. Valuation metrics remain limited due to negative earnings and the absence of a dividend yield.

More about Oxford BioMedica

Oxford BioMedica is a specialist contract development and manufacturing organisation focused on cell and gene therapies. The company provides viral vector development, GMP manufacturing and related services, including lentiviral and adeno-associated virus (AAV) platforms, supporting biopharmaceutical companies advancing clinical and commercial gene therapy programmes around the world.