Oxford BioMedica PLC (OXBDF)

[marcusl2]

In the long term we anticipate that OXB’s royalty revenue will outstrip its manufacturing revenue, particularly in indications/partnerships where OXB’s latest IP has been implemented.

In the long term, we forecast a growing multi-source royalty stream for OXB that will contribute alongside bioprocessing (manufacturing) revenue to its growing top line.

Due to the complexities of delivering gene therapies on this scale, we forecast that OXB is likely to receive a higher royalty rate than it receives from products that need smaller vector quantities, eg Kymriah in pALL or DLBCL.

We forecast that OXB sells vector batches to Bioverativ for $1.5m a batch, with peak gross margins of 30%.
We assume a larger than usual royalty rate of 7%. We believe OXB will likely have to incorporate an array of next-generation technology like TRiP to be able to reach the required manufacturing yields for these large indications, in turn driving increased royalties.

We forecast that OXB sells vector batches to Orchard for $1.5m a batch, with peak gross margins of 30% We assume a peak royalty rate of 2%

We forecast that OXB sells vector batches to Immune Design for $1.5m a batch, with peak gross margins of 30%. 2% royalty
http://www.edisoninvestmentresearch.com/research/report/oxford-biomedica73735/full