Oxford Biomedica (LON: OXB) has lowered its full-year 2026 revenue and profitability guidance after changes in customer ordering patterns and delays at its US facility, despite reporting record new client activity and continued growth in its commercial pipeline.
The cell and gene therapy contract development and manufacturing organisation said first-half revenue increased by approximately 9% to £80 million, with trading continuing to reflect the previously anticipated weighting towards the second half of the year.
However, OXB now expects 2026 revenue of between £180 million and £200 million, reflecting programme deferrals, delayed client timelines, changes in procurement strategy at a larger customer and a six-month delay to the integration and operational readiness of its Durham, North Carolina facility.
The Durham site is now back on track, with its first GMP manufacturing run underway.
The lower revenue expectation will also affect profitability, with OXB forecasting a mid-single-digit EBITDA margin excluding one-off costs, or a low-single-digit margin on a reported basis.
Despite the near-term downgrade, commercial activity remained strong. OXB signed a record 17 new clients during the first half, more than 30% above the number secured during the whole of 2025.
Its revenue backlog stood at approximately £193 million, while contracted client orders totalled around £97 million. Approximately £165 million of forecast 2026 revenue is covered by contracted orders, subject to revenue performance obligations.
OXB said some customers are increasingly taking a staged approach to ordering individual work packages, meaning it is taking longer for the company to realise the full potential value of contracts.
The non-risk-adjusted new business pipeline increased approximately 30% year-on-year to $713 million, while the customer portfolio continues to shift towards more late-stage and commercial-stage programmes.
This includes OXB’s recently announced commercial supply agreement with Bristol Myers Squibb, under which it will provide lentiviral vectors supporting the pharmaceutical group’s CAR-T portfolio.
OXB ended June with £75 million of gross cash and £21 million of net cash, compared with £97 million and £55 million respectively at the end of 2025.
Importantly, management maintained its medium and long-term targets. OXB continues to expect 25%-30% revenue growth in 2027, alongside an improvement to at least a double-digit EBITDA margin.
The company also retains its ambition of generating approximately £500 million of annual revenue by 2030, with longer-term EBITDA margins approaching 30% as scale and operational leverage improve.
Chief executive Dr Frank Mathias said record client wins, the expanding pipeline and increasing exposure to late-stage and commercial programmes continued to demonstrate strong underlying demand despite the short-term changes in customer ordering behaviour.
OXB will publish its full interim results on 22 September 2026.
