Oxford Biomedica Shares Plunge After 2026 Revenue Forecast Reduction
Oxford Biomedica Lowers Revenue Outlook Amid Operational Challenges
Aug 7 (Reuters)Durham, NC - Britain's Oxford Biomedica fell more than 24% on Friday after the cell and gene therapy manufacturer cut its 2026 revenue forecast, citing operational delays at a U.S. site and deferred client orders.
Key Details of the Revenue Forecast Cut
Here are some more details:
Operational and Financial Impacts
• The company had previously warned of first-half core loss due to planned maintenance shutdowns and costs associated with the integration of its newly acquired facility in Durham, North Carolina.
Updated Sales Projections
• Oxford Biomedica, which was spun off from the University of Oxford, said it now expected sales of £180 million to £200 million ($242.06 million to $268.96 million) in 2026, below previous guidance of £220 million to £240 million.
Client Ordering and Program Delays
• The company said "changes in client ordering behaviour", including delayed programme timelines and altered procurement pathways of a large client, impacted revenue.
Durham Facility Readiness
• Operational readiness of the Durham facility was also delayed by six months, it said.
Market Reaction and Future Outlook
• The stock fell to its lowest in nearly a year and was on track for its worst day since June 2013 as of 0741 GMT.
• 2026 core profit margin, excluding one-off costs, is expected to be in the mid-single-digit percentage, the firm said.
• Oxford Biomedica held its medium-term goals, targeting 25-30% revenue growth and about £500 million of revenue by 2030.
Additional Information
($1 = 0.7436 pounds)
(Reporting by Simone Lobo in Bengaluru; Editing by Mrigank Dhaniwala)
