Oxford Biomedica extends lentiviral deal with Swiss giant

UK cell and gene therapy firm Oxford Biomedica (LSE: OXB) today announced an extension to its commercial supply agreement with Novartis (NOVN: VX) for the manufacture of lentiviral vectors for the Swiss pharma giant’s CAR-T portfolio including five lentiviral vectors for CAR-T products, including Kymriah (tisagenlecleucel).

This builds on the existing three-year commercial supply agreement signed by the parties in July 2017, with the news sending Oxford Biomedica’s share nearly 2% higher to 643.92 pence in early afternoon trading.

Accord worth at least $75 million

Under the terms of the deal, Oxford Biomedica will receive a minimum $75 million from Novartis over the next five years in manufacturing revenue with additional undisclosed process development fees. A mid-single digit £m payment will also be made in the medium term as a facility reservation fee with other terms such as royalties on net sales of resulting CAR-T products as previously agreed in 2014.