Oxford Biomedica’s 2025: revenue surges, EBITDA turns positive, and a fresh BMS deal lands
Oxford Biomedica (OXB) delivered a convincing step-change in 2025. Revenue jumped 33% on a constant currency basis to £170.9 million (reported: £168.7 million) and Operating EBITDA flipped into the black at £8.1 million on a constant currency basis (£2.3 million reported). Underlying Operating EBITDA on a constant currency basis was £3.3 million once you strip out the Durham, NC acquisition gain and related costs. For a contract development and manufacturing organisation (CDMO) focused on viral vectors, that is the kind of operational progress investors have been waiting for.
Crucially, visibility strengthened. Contracted client orders reached £224 million and the revenue backlog rose c.36% to c.£204 million, pointing to continued growth through 2026 and into early 2027. Post year end, OXB signed a multi‑year commercial supply agreement with Bristol Myers Squibb (BMS) for lentiviral vectors used in CAR‑T therapies – a vote of confidence from a top-tier partner.
Big headline numbers investors should know
| Metric | 2025 | 2024 |
|---|---|---|
| Total revenue | £168.7m (CC: £170.9m) | £128.8m |
| Operating EBITDA | £2.3m (CC: £8.1m) | £(15.3)m |
| Underlying Operating EBITDA (CC) | £3.3m | n/a |
| Operating (loss) | £(22.5)m | £(39.4)m |
| Gross margin | 39% | 41% |
| Cash | £96.9m | £60.7m |
| Net cash | £55.4m | £20.6m |
| Contracted client orders | £224m | £186m |
| Revenue backlog | c.£204m | c.£150m |
Jargon buster: CDMO is a contractor that develops and manufactures products for biopharma clients. EBITDA is operating profit before non‑cash items like depreciation and share‑based payments – a rough proxy for operating cash generation. Constant currency (CC) removes FX swings to show like‑for‑like growth.
What powered the growth: lentiviral strength, AAV momentum and procurement
- Manufacturing services revenue rose 19% to £81.1 million as lentiviral GMP batches increased 32% and commercial launch preparations picked up.
- Development services climbed 27% to £60.1 million, helped by more clients moving into later clinical stages and doing process characterisation and validation.
- Procurement and storage services leapt to £22.3 million (from £5.8 million), reflecting clients stockpiling critical materials pre‑commercialisation – useful for de‑risking supply chains.
- Licences, milestones and royalties fell to £5.2 million (from £7.3 million) due to timing and lower Kymriah royalties as that product matures.
The mix shift into lower‑margin procurement softened gross margin to 39% from 41%. That is not ideal for margin purists, but it does indicate programmes are edging closer to the sharp end of commercial supply.
Durham, NC acquisition: a small cheque, a big capability jump
In October 2025, OXB bought an FDA‑approved commercial‑scale viral vector site in Durham, North Carolina for $4.5 million (£3.3 million). Accounting fair value of the assets was £13.3 million, generating a one‑off gain of £9.9 million – hence the “bargain purchase”. Strategically, this adds commercial drug substance and fill‑finish capacity in the US, the world’s largest cell and gene therapy market, and materially strengthens OXB’s AAV offering.
Integration is underway with tech transfer from Bedford, MA and plans to ramp commercial AAV batches and add fill‑finish. The site contributed no revenue in 2025 and a pre‑tax loss of £3.3 million, which is normal in an onboarding phase.
Balance sheet, funding and capex: built for scale
- Year‑end cash of £96.9 million and net cash of £55.4 million, aided by an equity raise of c.£60 million in August 2025.
- New four‑year Oaktree loan facility up to $125 million (initial $60 million drawn), with a further $15 million drawn in March 2026.
- Capex trimmed: c.£50 million in aggregate across 2026 and 2027, then c.£20‑25 million per year thereafter.
Interest costs did rise: lease interest hit £8.3 million and loan interest £5.5 million, so execution needs to keep pace to protect margin expansion.
2026 guidance: second‑half heroics expected
| Guidance | Detail |
|---|---|
| 2026 revenue | £220‑240 million (CC) |
| 2026 Operating EBITDA margin | c.10% (H2 double‑digit; H1 loss‑making on EBITDA due to phasing and one‑offs) |
| 2027‑2028 revenue growth | 25‑30% per year |
| 2027 EBITDA margin | at least 20% |
| Long‑term EBITDA margin potential | approaching c.30% within five to six years |
Coverage looks solid: 60% of forecast 2026 revenue already under contracted client orders, rising to over 80% including the risk‑adjusted pipeline (as at February 2026). Expect the P&L to be back‑end weighted as French GMP readiness (AAV and lentiviral) lands by Q2 2026 and Durham revenues ramp.
The new BMS deal: commercial credibility matters
In February 2026, OXB and BMS signed a multi‑year commercial supply agreement for lentiviral vectors for BMS’ CAR‑T programmes. That deepens a strategic relationship with a major cell therapy player and supports the push into late‑stage and commercial volumes. For investors, it signals quality and reliability at commercial grade – the part of the market where CDMOs can earn higher, steadier margins.
Positives, risks and my take
What looks good
- Strong growth and first step to sustainable profitability: 33% CC revenue growth and positive Operating EBITDA.
- Visibility improved: £224 million contracted orders and c.£204 million backlog provide line of sight into 2026‑27.
- Strategic US capacity: Durham adds FDA‑approved commercial scale in AAV and fill‑finish – a key differentiator.
- Cash runway strengthened: £96.9 million cash and flexible debt facility to support scale‑up.
What to watch
- Still loss‑making at operating and net levels in 2025: operating loss £(22.5) million, net loss £(30.6) million.
- H1 2026 to be EBITDA‑loss making due to phasing, shutdowns and non‑recurring costs – execution risk sits in H2.
- Gross margin diluted by procurement mix; margin expansion depends on higher‑value manufacturing mix and utilisation.
- Rising finance and lease costs – the earnings inflection needs to outrun the cost base.
- Integration of Durham and French tech transfers must hit timelines to unlock the guide.
Overall, I see this as a materially positive update. The combination of double‑digit growth, EBITDA turning positive, strengthened order book, and a marquee BMS deal puts OXB on a firmer footing. The guidance implies a meaningful step‑up in H2 2026; investors should expect some bumps in H1 but judge the year on exit velocity and margin trajectory.
Key drivers for 2026 and beyond
- France GMP‑ready by Q2 2026 for AAV and lentiviral – adds European late‑stage capacity.
- Durham commercial AAV batches and future fill‑finish capability – a catalyst for US‑based wins.
- Healthy pipeline despite order conversion: $597 million by year‑end 2025, with over half of new wins in AAV.
- Capex discipline and operating leverage – margin expansion to c.10% in 2026 and >20% in 2027 if volumes flow.
Final word
OXB executed on its pure‑play CDMO strategy in 2025: bigger, more global, and closer to commercial supply. The BMS agreement, Durham acquisition and stronger backlog collectively de‑risk the growth plan. Now it is about on‑time tech transfers, utilisation, and sustaining order momentum through H2. If management delivers against guidance, 2026 should be the year the P&L starts to look like the business model promises.
