{"id":42,"date":"2018-02-15T23:53:09","date_gmt":"2018-02-15T23:53:09","guid":{"rendered":"http:\/\/www.cheapertrader.com\/?p=42"},"modified":"2018-02-18T08:31:14","modified_gmt":"2018-02-18T08:31:14","slug":"oxford-biomedica-plc-long-term-buy","status":"publish","type":"post","link":"https:\/\/www.cheapertrader.com\/index.php\/2018\/02\/15\/oxford-biomedica-plc-long-term-buy\/","title":{"rendered":"Oxford Biomedica plc &#8211; long term buy?"},"content":{"rendered":"<p>Oxford Biomedica plc (LON:OXB) is up about 11% today with the announcement of a collaboration &amp; License Agreement with Bioverativ to develop some key\u00a0haemophilia products using gene\/cell therapy. Under the agreement, OXB is eligible to receive an upfront payment of $5 million\u00a0 + payments in excess of $100 million and undisclosed royalties on sales of the Bioverativ&#8217;s products. Not bad eh. Oxford BioMedica&#8217;s LentiVector&#8217;s platform appears to be really gaining traction.<\/p>\n<p>Actually, the company has had a lot of good press lately. In January, it was awarded a \u00a33 million grant by Innovate UK; and one of the Novartis&#8217; products on the LentiVector platform Kymriah was recently accepted by the FDA for Priority review. The European Medicines Agenty has also granted accelerated assessment as well for Kymriah.<\/p>\n<p>It&#8217;s not surprising therefore, why this company is at near all time highs at the moment. The company had a low share price of 3.77p over the past year, vs a price of 12p now (over 300% rise); definately not bad in my books. The big question is now though, at a market capitalization of \u00a3372.96M, is it worth it to buy in now? Can a purchaser expect shares to possibly treple the value of their shares 3 years from now?<\/p>\n<p>The reality is that the company has several products in development, any one of which could be a runaway success. The company also has license agreements with many leading pharmaceutical firms like Novartis and Bioverativ.<\/p>\n<p>Full year results should be coming out shortly, but taking a look at the numbers from the interim half year report<\/p>\n<ul>\n<li>Revenue increased by 26%<\/li>\n<li>Losses narrowed from \u00a36.9 million to \u00a32.2 million<\/li>\n<li>Cash burn was about \u00a35 million in 6 months (Dec 2016 &#8211; Jun 2017), leaving cash at a balance of \u00a310.2 million. However, cash has been topped up by one off payments (e.g 31 July 2017, cash was \u00a322 million from a payment from Novartis)<\/li>\n<li>Debt was \u00a323 million<\/li>\n<\/ul>\n<p>Given that the company continues to receive one off payments, I don&#8217;t see it running into any issues in the immediate future cash wise. The only question is then; is the company under valued, fairly valued or over valued at \u00a3372.96M?<\/p>\n<p>\u00a3372.96M for a company that made a half year loss of \u00a32.2 million seems a bit pricey, but with the company continuing to secure deals for its gene\/cell therapy platform; and with so many products in the pipeline; there is no doubt that the\u00a0 company is definitely growing. With the gene\/cell therapy sector to be worth multiple billions in the not too distant future, I would not be surprised if Oxford Biomedica turns out to be a major player.<\/p>\n<p>Please do your own research, but for me, I think it&#8217;s a long term buy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oxford Biomedica plc (LON:OXB) is up about 11% today with the announcement of a collaboration &amp; License Agreement with Bioverativ to develop some key\u00a0haemophilia products using gene\/cell therapy. Under the agreement, OXB is eligible to receive an upfront payment of $5 million\u00a0 + payments in excess of $100 million and undisclosed royalties on sales of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":46,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"offerexpiration":[],"class_list":["post-42","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk-companies"],"_links":{"self":[{"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/posts\/42","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/comments?post=42"}],"version-history":[{"count":2,"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/posts\/42\/revisions"}],"predecessor-version":[{"id":44,"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/posts\/42\/revisions\/44"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/media\/46"}],"wp:attachment":[{"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/media?parent=42"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/categories?post=42"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/tags?post=42"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/www.cheapertrader.com\/index.php\/wp-json\/wp\/v2\/offerexpiration?post=42"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}