Funds raised by the company formerly known as Oxford Biomedica will be used to support expansion in the US. 

Cell and gene therapy-focused company OXB, formerly known as Oxford Biomedica, has raised £60 million in a share placement. 

Net proceeds will be used to fund strategic investments to expand OXB’s US commercial-scale capacity and advance process quality, productivity and yields. This will allow the company to address growing client demand, including visible near and medium-term opportunities across all clinical phases, including late-stage and commercial supply. 

“OXB has demonstrated continued commercial momentum through execution of its strategy, supported by growing demand for viral vectors and cell and gene therapy manufacturing across all clinical phases,” said chief executive officer Frank Mathias. 

“We have a strong visible pipeline in the near and medium term, and this placement represents a compelling opportunity to fund expansion of commercial-scale capabilities in the US alongside other strategic investments in order to meet growing client demand,” he added. 

Significant war chest

The company sold 13.9 million new shares at 431p each. This was a slight discount to the closing price the day before of 439.50p. 

The company said that it had received strong support from new shareholders such as Massachusetts Institute of Technology, along with existing shareholders Briarwood Chase Management, Novo Holdings and Institut Mérieux, amongst others. 

The share placement follows a new four-year loan facility of up to $125 million provided by funds managed by Oaktree Capital Management and signed at the beginning of August. 

The new loan facility includes $60 million upfront funding available at close, which will be used to repay the existing $50 million four-year term loan facility with Oaktree and for general corporate purposes. The facility also includes the option to draw down a further $25 million, subject to customary conditions, and an additional $40 million, subject to achieving certain revenue milestones – providing financial flexibility to support future business needs, if required.

Jefferies acted as global coordinator and joint bookrunner on the share placement together with RBC Capital Markets.