Oxford BioMedica inks $100 million supply agreement

UK-based gene and cell therapy company Oxford BioMedica (LSE:OXB) has signed an agreement with Novartis (NOVN: VX) for the commercial and clinical supply of lentiviral vectors used to generate CTL019 (tisagenlecleucel) and other undisclosed Chimeric Antigen Receptor T cell (CART) products.

The agreement builds on the collaboration announced between the UK group and Swiss pharma giant Novartis in October 2014 and anticipates the commercial launch of CTL019 later this year. Oxford BioMedica’s shares rose 1.5% to 10 pence after unveiling the agreement with Novartis.

Under the terms of the accord, which includes minimum offtake requirements, Oxford BioMedica could potentially receive in excess of $100 million from Novartis over the next three years. This amount includes a $10 million upfront payment, various performance incentives and bioprocessing and development services. The supply agreement is for three years, extendable to five years subject to the agreement of both parties.