Oxford Biomedica (LON:OXB) outlined a year of revenue growth, a return to operating EBITDA profitability, and continued expansion of its global viral vector CDMO network during its preliminary full-year 2025 results call. Management emphasized that 2025 reflected “sustained commercial momentum and disciplined execution,” supported by rising demand across vector types and more client programs advancing toward late-stage and commercial manufacturing.
2025 performance and commercial progress
Chief Executive Officer Dr. Frank Mathias said 2025 revenue increased 33% at constant currency to GBP 170.9 million, representing nearly a 90% increase from around GBP 90 million in 2023. He also highlighted the company’s growing revenue visibility, with backlog up 36% to GBP 204 million and contracted client orders rising 20% to GBP 224 million, which management said supports visibility into 2026 and early 2027.
Management also pointed to balance sheet actions during the year, including a GBP 60 million fundraising and a new loan facility from Oaktree, described as providing flexibility to invest in capacity and capabilities.
Durham acquisition expands U.S. footprint
A major strategic milestone in 2025 was the acquisition of an FDA-approved commercial-scale viral vector manufacturing facility in Durham, North Carolina. Mathias said the site includes integrated drug substance and fill-and-finish capabilities and was positioned as a “more capital-efficient” path to expand U.S. manufacturing than building a new facility. He added that localizing supply chains in the U.S. offers tax incentives and can help manage risks such as tariffs and export controls.
Management said integration is ongoing, including technology transfer from the company’s Bedford site to prepare Durham for commercial AAV batch manufacturing. The CEO said fill-and-finish capability would follow thereafter as part of completing an end-to-end U.S. offering.
On the Q&A, Chief Business Officer Dr. Sébastien Ribault provided additional details on Durham’s expansion potential, noting the site has two fully functional GMP suites and one fill-and-finish line, with space that could allow a third GMP suite to be brought online quickly with additional equipment. He also said there is space for a second fill-and-finish line and additional shell space that could support a longer-term expansion in overall capacity.
Market outlook and pipeline mix shifts toward AAV and later-stage work
Ribault described the viral vector CDMO market as being driven by three growth areas: early-stage opportunities, AAV, and a shift toward late-stage and commercial manufacturing. He characterized AAV as the fastest-growing segment, stating it accounts for about 50% of total cell and gene therapy programs and is expected to grow at more than 20% year-over-year in program count.
He also said the company’s opportunity pipeline has evolved with its multi-site network, with a greater share of opportunities tied to France and the U.S. compared with the prior year. Ribault highlighted that in the company’s January 2026 view of the pipeline, AAV opportunities had surpassed lentiviral opportunities for the first time, with 43% AAV versus 40% lentiviral.
By clinical phase, Ribault said the pipeline was balanced, with about 50% in phase II to phase III and commercial activities, and the remaining roughly half in preclinical and phase I. He also noted an increase in late-stage and commercial programs over time, stating that late-stage plus commercial programs rose from five in 2024 to six in 2025 and stood at eight “today,” with expectations that at least one could become commercial in the current year and additional programs potentially following over the next year.
Financial details: operating leverage, cash flow, and 2026 guidance
Chief Financial Officer Dr. Lucinda Crabtree said 2025 revenue growth reflected contributions across manufacturing, development, and procurement services, with procurement services growing substantially as clients prepared for commercial activities.
Crabtree said full-year operating EBITDA was GBP 8.1 million at constant currency, while underlying operating EBITDA was GBP 3.3 million excluding a one-off non-recurring gain relating to the Durham acquisition and related costs. The company ended the year with net cash of GBP 55.4 million, alongside year-end cash of GBP 96.9 million. She said the Oaktree facility is a four-year loan facility of up to $125 million.
On reported figures, Crabtree said revenue grew 31% to GBP 168.7 million while total expenses rose 17%, which she described as evidence of operating leverage. She broke down revenue components as follows:
- Manufacturing revenues increased 19% to GBP 81.1 million.
- Development services increased 27% to GBP 60.1 million.
- Procurement and storage revenues rose substantially, which management linked to commercial preparation activities.
Crabtree also noted administration expenses were impacted by non-operational items, including a GBP 4.6 million FX impact and GBP 1.3 million of acquisition-related costs.
On cash flow, she said net cash from operations was GBP 0.5 million (inclusive of the R&D tax credit received), compared with a GBP 50.7 million outflow in 2024, attributing the improvement to stronger underlying performance, working capital management, and higher client upfront payments.
For 2026, the company reiterated constant-currency revenue guidance of GBP 220 million to GBP 240 million. Crabtree said about 60% of the guidance range is covered by contracted client orders, rising to more than 80% when including the risk-adjusted pipeline relevant for 2026.
Management expects 2026 to be second-half weighted, with the first half absorbing routine maintenance shutdowns, non-recurring costs linked to completion of AAV and lentiviral tech transfers, and continued Durham integration. Crabtree said H1 is expected to be loss-making at the EBITDA level, while H2 is expected to support double-digit operating EBITDA margins in the second half and around 10% for the full year.
The company also reduced its expected capital expenditure for 2026 and 2027 to an aggregate of approximately GBP 50 million, down from GBP 60 million previously communicated.
Key Q&A themes: orders, margins, FX/energy, and site strategy
Analysts asked about the pace and mix of orders, potential lumpiness, and demand conditions. Ribault said order performance in 2025 reflected capacity planning and slot availability, noting that once manufacturing slots are sold, the company cannot sell the same slot again. He said the company met its order target, finishing at GBP 224 million versus a target of GBP 220 million. On early 2026, he said the order dynamic was “as expected” and that forecasts from existing clients supported visibility.
On commercial contracts, Ribault said the company had three commercial programs and expected at least one to become commercial in the year, with a second possible depending on regulatory review timelines.
Asked about FX impact in 2026, Crabtree said that at current rates she would expect FX impact to be “relatively minimal.” On energy pricing, she said the company had locked in many rates recently and that most contracts come up for renewal in 2027, adding that impacts were “baked into expectations.”
On margins, management said it does not expect meaningful differences in margin between vectors, geographies, or types of activity based on its pricing approach. Crabtree said procurement services are expected to be a growing element of revenue, alongside higher-margin manufacturing and development, and that she would expect the mix to remain “relatively the same” in the near to medium term.
Management also addressed questions about whether the Durham acquisition affected its relationship with Bristol Myers Squibb. Ribault said discussions with Bristol Myers Squibb were underway before the Durham acquisition and that while the site gives an additional option to supply from the U.S. rather than only the U.K., he did not characterize Durham as changing the profile of the negotiation.
Finally, management said the company stopped a previously planned GMP expansion in Bedford after acquiring Durham. Ribault emphasized Bedford is focused on process development while Durham is GMP manufacturing, describing the two sites as complementary rather than duplicative.
About Oxford Biomedica (LON:OXB)
Oxford Biomedica (LSE: OXB) is a quality and innovation-led cell and gene therapy CDMO with a mission to enable its clients to deliver life changing therapies to patients around the world.
One of the original pioneers in cell and gene therapy, the Company has more than 25 years of experience in viral vectors; the driving force behind the majority of gene therapies. The Company collaborates with some of the world’s most innovative pharmaceutical and biotechnology companies, providing viral vector development and manufacturing expertise in lentivirus, adeno-associated virus (AAV) and adenoviral vectors.
