Oxford BioMedica shares fall after delays impact revenue expectations
Oxford BioMedica PLC on Friday said it has lowered its revenue expectations for the remainder of 2026, although revenue for the first half has increased.
In its trading update for the half-year ended June 30, the firm said it has lowered its full-year revenue forecast by 17% to £180 million to £200 million, from its original prediction of £220 million to £240 million.
The cell and gene therapy manufacturer said this was due to client programme deferrals, delayed timelines, changes to a large client's procurement strategy and a later-than-expected operational ramp-up at its Durham, North Carolina site.
However, it maintained guidance of 25% to 30% revenue growth in 2027.
Shares in Oxford BioMedica fell 18% to 484.50 pence per share on Friday morning in London.
The company also said it expects a mid-single-digit percentage earnings before interest, tax, depreciation, and amortisation margin for 2026, excluding one-off costs.
First-half revenue rose about 9% year-on-year to about £80 million, highlighting underlying demand.
The company noted that around £165 million of its forecast 2026 revenue is covered by contracted client orders. It also said that its revenue backlog of about £193 million provides meaningful visibility into the future and that the contracted client orders, worth around £97 million, reflect a continued demand across a global client base.
The company's guidance for financial year 2027 revenue growth remains unchanged at 25% to 30% year-on-year, and it has predicted "significant improvement to profitability" with at least double-digit Ebitda margins.
Chief Executive Frank Mathias said: "We continue to see strong demand for [Oxford BioMedica's] services, demonstrated by record new client activity in the first half, an expanding new business pipeline and a growing number of late-stage and commercial-stage opportunities.
"While we are updating our FY 2026 guidance to reflect the short-term impact of changes in client ordering behaviour and the phased ramp-up of our Durham, [North Carolina] site, we remain confident about [Oxford BioMedica's] future as we continue to expand our market position in the growing cell and gene therapy sector and support our clients in delivering life-changing therapies to patients."
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