LONDON (ShareCast) - Gene and cell therapy company Oxford Biomedica has signed a 'transformational' new contract with Novartis worth up to $90m over the next three years.
The group will pay $14m upfront, including a $4.3m equity subscription for a non-exclusive worldwide development and commercialisation licence in oncology.

It said it will also earn additional potential royalties of future sales of some of its cell products of an unspecified amount.

Oxford chief executive officer John Dawson said the contact fundamentally changes its financial prospects as the revenues in the next three years could allow it to become operationally cash positive and there is the potential for additional longer term revenues from royalties.

He continued: "This financial transformation will allow us to take forward our enviable pipeline of gene and cell therapy candidates and I look forward to reaching the upcoming value inflection points across our portfolio as well as realising the benefits of our sought after manufacturing capabilities."

The group also updated on its Retinostat phase 1 study, which it said has met its primary end points of safety and tolerability at six months post-surgery.

Oxford said it plans to give a full report on the drug once it has completed its 48 week follow-up with the patients in March.

It has also initiated a pre-clinical research programme for its Lentivector platform used in the treatment of cancer.

Looking ahead, the group said: "The company has several key priorities for the next few months. First, Oxford BioMedica will ensure that the process development and manufacturing activities with Novartis make excellent progress.

"Secondly, the company will put into action the capacity expansion plans required to ensure we can deliver in line with demand over the initial three-year Novartis contract. In parallel, Oxford BioMedica will continue to drive forward the product development programmes."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE