The Oxford BioMedica plc (LON: OXB) share price rallied 19.4% after announcing that it was in exclusive talks with Institut Mérieux about the proposed acquisition of ABL Europe by the company as part of its transition into a pure-play CDMO company.
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Acquiring ABL Europe will give Oxford Biomedica the multi-viral vector ability as a contract development and manufacturing organisation (CDMO) across multiple EU, UK and US sites. The company will also have additional capacity to cater to increased client demand.
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The acquisition would also reinforce Oxford Biomedica’s position as a global leader in gene and cell therapy CDMO, providing services in Lentiviral vectors, Adenovirus, and AAVs, with the acquisition expanding its services to MVA, Pox Virus, and Vaccinia.
Oxford Biomedica will also get access to facilities in France, which it can use to serve clients with the additional manufacturing capacity and process development in the EU.
The terms of the proposed acquisition include a consideration of €15 million, which includes the value of €10 million of pre-completion cash funding in ABL Europe from Institut Mérieux, in exchange for Oxford Biomedica shares at an issue price of not less than 407.4p per share.
Furthermore, Institut Mérieux has committed to additional funding of €20 million for ABL Europe via a subscription for Oxford Biomedica shares at a time to be decided by Oxford Biomedica. Therefore, Institut Mérieux will become a significant shareholder in Oxford Biomedica.
Dr Frank Mathias, Oxford Biomedica’s CEO, commented: “As part of our transformation into a pure-play CDMO in 2023, this potential acquisition augments our position as a world-leading quality and innovation-led CDMO in the cell and gene therapy field. ABL Europe offers the opportunity to gain a footprint in the EU and free up Oxford Biomedica’s capacity to meet increasing client demand and significantly increase our capabilities and flexibility for clients. Our goal is to deliver excellent client experiences and accelerate the time it takes for our clients to get their products to market. We are excited about the possibility of welcoming ABL Europe staff to our group and Institut Mérieux as a long-term shareholder and turning to 2024 with great excitement and confidence.”
The Oxford Biomedica (OXB) share price.
The Oxford Biomedica (OXB) share price rallied 19.44% to trade at 285.75p, from Tuesday’s closing price of 239.25p.
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