Oxford Biomedica expands COVID-19 deal with AstraZeneca

UK cell and gene therapy company Oxford Biomedica (LSE: OXB) on Friday announced that it has signed a new three-year master services and development agreement (MSDA) with AstraZeneca (LSE: AZN), which would facilitate potential future manufacturing opportunities for the AstraZeneca COVID-19 vaccine.

This represents an expansion of the original MSDA announced between the two companies in  September 2020, and news of the expansion edged Oxford Biomedica’s shares up 2.6% to 466.00 pence. Before AstraZeneca partnered with Oxford University to develop its Covid vaccine, the pharmaceutical pharma did not have a significant vaccine business.

The manufacture of COVID-19 vaccines at Oxford Biomedica’s Oxbox facility is expected to complete in the last quarter of 2022, as part of the original commitment. In accordance with the terms of the original agreement and inclusive of revenues for batches already manufactured in the first half of 2022, Oxford Biomedica expects to recognize aggregate revenues of approximately £30 million ($36 million) from AstraZeneca in the current financial year.