June 2020

June 2020

June 2020

June 2020

UK House Price Index summary: June 2020

1. Headline statistics for June 2020

The average price of a property in the UK was £237,834

The annual price change for a property in the UK was 3.4%

The monthly price change for a property in the UK was 2.7%

The monthly index figure (January 2015 = 100) for the UK was 124.7

Estimates for the most recent months are provisional and are likely to be updated as more data is incorporated into the index. Read Revisions to the UK HPI data.

Next publication of UK HPI

The July 2020 UK HPI will be published at 9.30am on Wednesday 7 October 2020. See the provisional publication schedule for more information.

2. Economic statement

UK house prices increased by 3.4% in the year to June 2020, up from 1.1% in May 2020. On a non-seasonally adjusted basis, average house prices in the UK increased by 2.7% between May 2020 and June 2020, compared with a rise of 0.4% during the same period a year earlier (May 2019 and June 2019).

House price growth was strongest in England where prices increased by 3.5% over the year to June 2020. The highest annual growth within the English regions was in the East Midlands where average house prices grew by 4.5%. The lowest annual growth was in the North East, where prices increased by 1.7% over the year to June 2020.

The Royal Institution of Chartered Surveyors’ (RICS) June 2020 UK Residential Market Survey results point to a recovery emerging across the market, with indicators on buyer demand, sales and fresh listings all rallying noticeably following the lockdown-related falls. Respondents still appear relatively cautious on the prospect of this improvement being sustained over the longer term.

The Bank of England’s Agents’ summary of business conditions - 2020 Q2 reported that housing market activity is gradually resuming in England, with estate agents reporting strong demand from buyers and a modest increase in instructions to sell. Agents around the country noted an increase in interest from buyers looking to move out of London, and in properties that are more suitable for home-working.

The UK Property Transactions Statistics for June 2020 showed that on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 61,780. This is 37.4% lower than a year ago. Between May 2020 and June 2020, transactions increased by 28.4%.

The Bank of England’s Money and Credit June 2020 release reported that mortgage approvals for house purchases (an indicator of future lending) increased in June to 40,000 but is still below February’s pre-coronavirus (COVID-19) level of 73,700.

3. Price changes

3.1 Annual price change

Annual price change for UK by country over the past 5 years

Average house prices in the UK increased by 3.4% in the year to June 2020, up from 1.1% in May 2020.

At the country level, the largest annual house price growth was recorded in England, increasing by 3.5% over the year to June 2020.

Northern Ireland saw house prices increase by 3.0% over the year to Quarter 2 (April to June) 2020.

Scotland saw house prices increase by 2.9% in the year to June 2020.

Wales house prices increased by 2.8% in the year to June 2020.

3.2 Average price by country and government office region

Price, monthly change and annual change by country and government office region

Country and government office regionPriceMonthly changeAnnual change
England£254,4232.8%3.5%
Northern Ireland (Quarter 2 - 2020)£141,1310.3%3.0%
Scotland£157,0562.8%2.9%
Wales£167,5052.7%2.8%
East Midlands£200,6822.6%4.5%
East of England£295,8562.0%2.6%
London£490,4953.6%4.2%
North East£131,7422.9%1.7%
North West£170,9394.3%4.4%
South East£327,5581.6%2.1%
South West£263,4742.9%4.3%
West Midlands£204,6643.0%4.1%
Yorkshire and The Humber£169,0202.7%3.3%

Price changes by country and government office region

On a non-seasonally adjusted basis, average house prices in the UK increased by 2.7% between May 2020 and June 2020, compared with a rise of 0.4% during the same period a year earlier (May 2019 and June 2019). On a seasonally adjusted basis, average house prices in the UK increased by 2.4% between May 2020 and June 2020.

Note: The Northern Ireland figure represents a 3-month change and is not comparable with the other regions and countries.

3.3 Average price by property type

Average monthly price by property type

Property typeJune 2020June 2019Difference
Detached£360,814£347,5643.8%
Semi-detached£227,561£218,6764.1%
Terraced£193,774£186,2724.0%
Flat or maisonette£206,148£204,2710.9%
All£237,834£230,0493.4%

4. Sales volumes

The amount of time between the sale of a property and the registration of this information varies. It typically ranges between 2 weeks and 2 months but can be longer. Volume figures for the most recent 2 months are not yet at a reliable level for reporting, so they are not included in the report. Published transactions for recent months will increase as later registered transactions are incorporated into the index.

Sales volume data is also available by property status (new build and existing property) and funding status (cash and mortgage) in our downloadable data tables. Transactions involving the creation of a new register, such as new builds, are more complex and require more time to process. Read Revisions to the UK HPI data for more information.

4.1 Sales volumes

Number of sales volumes by country

CountryApril 2020April 2019
England18,91760,107
Northern Ireland (Quarter 2 - 2020)1,6526,195
Scotland2,3407,927
Wales1,1663,462

Note: The number of property transactions for April 2020 will increase as more transactions are incorporated into the index. See our Revisions Policy for more information.

Comparing the provisional volume estimate for April 2019 with the provisional estimate for April 2020, volume transactions decreased by 65.2% in England, 63.3% in Wales, 70.0% in Scotland and by 68.3% in Northern Ireland in the year to April 2020.

UK Property Transaction Statistics published by HM Revenue & Customs (which differ in coverage but are more complete for this period) report that on a non-seasonally adjusted basis, volume transactions decreased by 56.2% in England, 56.5% in Wales, 66.0% in Scotland and by 79.7% in Northern Ireland in the year to April 2020.

4.2 Sales volumes for the UK over the past 5 years

Sales volumes for 2016 to 2020 by country: April

Note: The number of property transactions for April 2020 will increase as more transactions are incorporated into the index. See our Revisions Policy for more information.

Comparing the provisional volume estimate for April 2019 with the provisional estimate for April 2020, UK volume transactions decreased by 65.9%.

UK Property Transaction Statistics published by HM Revenue & Customs (which differ in coverage but are more complete for this period) report that on a non-seasonally adjusted basis, UK volume transactions decreased by 57.6% in the year to April 2020.

5. Property status for UK

Transactions involving the creation of a new register, such as new builds, are more complex and need more time to process. This means they can take longer to appear in the land registers. The volume of new build transactions for the most recent 2 months are not at a reliable level for reporting the breakdown between new build and existing resold property, so they are not included in the report.

New build and existing resold property

Property statusAverage price April 2020Monthly changeAnnual change
New build£302,2531.5%5.9%
Existing resold property£226,377-1.3%0.7%

Note: Since the October 2017 release, amendments have been made to our estimation model when calculating our provisional estimate. Find out further information and the impact of this change in the methods used to produce the UK HPI.

6. Buyer status for Great Britain

First time buyer and former owner occupier

Type of buyerAverage price June 2020Monthly changeAnnual change
First time buyer£200,0282.8%3.2%
Former owner occupier£276,0142.8%3.6%

7. Funding status for Great Britain

Cash and mortgage

For Great Britain only, Northern Ireland data is not available for funding status.

Funding statusAverage price June 2020Monthly changeAnnual change
Cash£225,5912.9%2.9%
Mortgage£248,1652.7%3.6%

8. Housing transaction distributions

Between January 2020 and March 2020, there were 183,679 property sales.

The most popular price range for:

  • England was £150,000 to £174,999 – 12,660 properties were purchased
  • Northern Ireland was £125,000 to £149,999 – 849 properties were purchased
  • Scotland was £75,000 to £99,999 – 2,285 properties were purchased
  • Wales was £125,000 to £149,999 – 1,248 properties were purchased

The charts below show the distribution of housing transactions for Q1 (January to March) 2020 for countries of the UK. Data is presented in bands of £25,000 up to £1 million, followed by larger bands up to and over £10 million.

In line with the UK HPI revisions policy, the number of transactions will increase as more data are incorporated into the index, which would also impact the distributions presented in this analysis.

England housing transactions

Price bandHousing transactions
Less than £25,00067
£25,000 to £49,9991,049
£50,000 to £74,9994,470
£75,000 to £99,9997,758
£100,000 to £124,9999,529
£125,000 to £149,99912,153
£150,000 to £174,99912,660
£175,000 to £199,99911,984
£200,000 to £224,99910,288
£225,000 to £249,99910,234
£250,000 to £274,9999,414
£275,000 to £299,9998,165
£300,000 to £324,9997,104
£325,000 to £349,9995,941
£350,000 to £374,9995,370
£375,000 to £399,9994,553
£400,000 to £424,9993,823
£425,000 to £449,9993,135
£450,000 to £474,9992,794
£475,000 to £499,9992,460
£500,000 to £524,9991,893
£525,000 to £549,9991,724
£550,000 to £574,9991,566
£575,000 to £599,9991,363
£600,000 to £624,9991,191
£625,000 to £649,999989
£650,000 to £674,999851
£675,000 to £699,999791
£700,000 to £724,999657
£725,000 to £749,999622
£750,000 to £774,999589
£775,000 to £799,999473
£800,000 to £824,999422
£825,000 to £849,999354
£850,000 to £874,999386
£875,000 to £899,999312
£900,000 to £924,999289
£925,000 to £949,999233
£950,000 to £974,999277
£975,000 to £999,999220
£1,000,000 to £1,249,9991,156
£1,250,000 to £1,499,999679
£1,500,000 to £1,749,999400
£1,750,000 to £1,999,999250
£2,000,000 to £4,999,999506
£5,000,000 to £9,999,99972
Greater than £10,000,00012

Northern Ireland housing transactions

Price bandHousing transactions
Less than £25,00019
£25,000 to £49,999150
£50,000 to £74,999560
£75,000 to £99,999759
£100,000 to £124,999774
£125,000 to £149,999849
£150,000 to £174,999644
£175,000 to £199,999351
£200,000 to £224,999214
£225,000 to £249,999188
£250,000 to £274,999110
£275,000 to £299,999112
£300,000 to £324,99949
£325,000 to £349,99935
£350,000 to £374,99929
£375,000 to £399,99933
£400,000 to £424,99924
£425,000 to £449,99911
£450,000 to £474,9994
£475,000 to £499,99911
Greater than £500,00029

Scotland housing transactions

Price bandHousing transactions
Less than £25,000155
£25,000 to £49,999779
£50,000 to £74,9991,794
£75,000 to £99,9992,285
£100,000 to £124,9991,897
£125,000 to £149,9992,047
£150,000 to £174,9991,847
£175,000 to £199,9991,701
£200,000 to £224,9991,200
£225,000 to £249,9991,177
£250,000 to £274,999869
£275,000 to £299,999664
£300,000 to £324,999484
£325,000 to £349,999387
£350,000 to £374,999260
£375,000 to £399,999226
£400,000 to £424,999163
£425,000 to £449,999126
£450,000 to £474,99991
£475,000 to £499,99973
£500,000 to £524,99961
£525,000 to £549,99947
£550,000 to £574,99958
£575,000 to £599,99935
£600,000 to £624,99936
£625,000 to £649,99934
£650,000 to £674,99928
£675,000 to £699,99919
£700,000 to £724,99917
£725,000 to £749,99912
£750,000 to £774,99913
£775,000 to £799,99912
£800,000 to £824,9999
£825,000 to £849,9996
£850,000 to £874,99911
£875,000 to £899,9996
£900,000 to £924,9992
£925,000 to £949,9997
£950,000 to £974,9994
£975,000 to £999,9995
£1,000,000 to £1,249,99915
£1,250,000 to £1,499,99915
£1,500,000 to £1,749,9992
£1,750,000 to £1,999,9994
£2,000,000 to £4,999,9996
£5,000,000 to £9,999,9990
Greater than £10,000,0000

Wales housing transactions

Price bandHousing transactions
Less than £25,0000
£25,000 to £49,999108
£50,000 to £74,999545
£75,000 to £99,999960
£100,000 to £124,9991,204
£125,000 to £149,9991,248
£150,000 to £174,9991,080
£175,000 to £199,999864
£200,000 to £224,999538
£225,000 to £249,999522
£250,000 to £274,999396
£275,000 to £299,999312
£300,000 to £324,999213
£325,000 to £349,999171
£350,000 to £374,999125
£375,000 to £399,999114
£400,000 to £424,99979
£425,000 to £449,99967
£450,000 to £474,99952
£475,000 to £499,99934
£500,000 to £524,99927
£525,000 to £549,99923
£550,000 to £574,99922
£575,000 to £599,99915
£600,000 to £624,99916
£625,000 to £649,99912
£650,000 to £674,9999
£675,000 to £699,9996
£700,000 to £724,9993
£725,000 to £749,9998
£750,000 to £774,9997
£775,000 to £799,9995
£800,000 to £824,9992
£825,000 to £849,9994
£850,000 to £874,9993
£875,000 to £899,9994
£900,000 to £924,9993
£925,000 to £949,9991
£950,000 to £974,9990
£975,000 to £999,9990
£1,000,000 to £1,249,9994
£1,250,000 to £1,499,9991
£1,500,000 to £1,749,9990
£1,750,000 to £1,999,9990
£2,000,000 to £4,999,9990
£5,000,000 to £9,999,9990
Greater than £10,000,0000

9. Access the data

Download the data as CSV files or access it with our UK HPI tool.

Data revisions

View any revisions to previously published data in the data downloads or find out more about revisions in our guidance About the UK HPI.

10. About the UK House Price Index

The UK House Price Index (UK HPI) is calculated by the Office for National Statistics and Land & Property Services Northern Ireland. Find out about the methodology used to create the UK HPI.

Data for the UK House Price Index is provided by HM Land Registry, Registers of Scotland, The Land & Property Services/Northern Ireland Statistics & Research Agency and the Valuation Office Agency.

Find out more about the UK House Price Index.

11. Contact

Источник: [https://torrent-igruha.org/3551-portal.html]
, June 2020

Vocational and other qualifications quarterly: April to June 2020

Documents

Details

Main trends for quarter 2 2020

  1. The number of certificates awarded in 2020 quarter 2 was just over 367,000 certificates, a decrease of 74% compared to 2019 quarter 2. Restrictions due to the coronavirus (COVID-19) pandemic will have had a major impact, but there may also be other less influential factors at play.

  2. Decreases in the number of certificates awarded were seen across nearly all qualification types and levels.

  3. There were notable decreases in the number of certificates awarded in most sector subject areas, with the largest decreases seen for Preparation for Life and Work, Construction, Planning, Health, Public Services and Care, and Arts, Media and Publishing.

  4. The qualification with the highest number of certificates in Q2 2020 was NCFE’s CACHE Level 2 Certificate in Understanding Children and Young People’s Mental Health, which had the ninth highest number of certificates in Q2 2019. This was followed by the TCL Entry Level Certificate in ESOL International Speaking and Listening (Entry 3) (GESE Grade 5) (B1.1), which had the third highest number of certificates in Q2 2019.

  5. The awarding organisation with the highest number of certificates issued in this quarter was City and Guilds, followed by NCFE and Pearson. Over the whole year, Pearson had the highest number of certificates issued, followed by City and Guilds and NCFE.

  6. In Q2 2020, City and Guilds saw an 68% decrease in the number of certificates awarded compared to Q2 2019, but remained the awarding organisation with the highest number of certificates issued in Q2 this year. Nearly all other awarding organisations saw decreases in the number of certificates issued in Q2 2020 compared to Q2 2019.

  7. On 18 March 2020, the Secretary of State for Education announced that exams in schools and colleges due to take place in summer 2020 would be cancelled in order to help fight the spread of coronavirus (COVID-19). On 9 April we received a direction from the Secretary of State which set out how the Government expected vocational and technical qualifications, and general qualifications other than GCSE, AS and A levels, Extended Project Qualifications and Advanced Extension Awards in maths to be assessed and awarded in the coming weeks and months. This direction said that learners taking vocational and technical qualifications that are used for progression to and through employment, as well as further or higher education, should receive results where possible this summer, in order to allow them to progress to the next stage of their lives. For qualifications principally used for progression purposes, awarding organisations should issue calculated results to learners, where it was possible to do so, whilst ensuring that those awards were sufficiently valid and reliable. Where this was not possible, awarding organisations should adapt assessments or delivery models so that learners could sit assessments and complete their qualifications. Where qualifications directly signal occupational competence or function as a licence to practise, adaptation of the assessment or delivery model was the starting point. In cases where it would not be safe or meet employers’ requirements to calculate results or adapt assessments or delivery models, there may be no option but for learners to wait until assessments could take place as normal again. Ofqual consulted on proposals for exceptional arrangements for VTQ grading and assessment in 2020, and published an extraordinary regulatory framework on 22 May 2020.

Summer and autumn 2020 Qualification Explainer tool

For information on qualifications this summer and autumn, please see our interactive tool available at Ofqual Analytics.

Datasets

The dataset used to produce this release is available separately.

Statistics collection

All our published vocational and other qualifications publications are available at a single collection page.

User feedback

We welcome your feedback on our publications. Should you have any comments on this statistical release and how to improve it to meet your needs please contact us at data.analytics@ofqual.gov.uk.

Published 17 September 2020
Источник: [https://torrent-igruha.org/3551-portal.html]
June 2020

OXFORD BIOMEDICA PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2020

OXFORD BIOMEDICA PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2020

Oxford, UK – 17 September 2020: Oxford Biomedica plc (“Oxford Biomedica” or “the Group”) (LSE: OXB), a leading gene and cell therapy group, today announces interim results for the six months ended 30 June 2020.

FINANCIAL HIGHLIGHTS

  • Revenue increased by 6% to £34.0 million (H1 2019: £32.1 million)
  • Continued strong growth was seen in bioprocessing and commercial development, where revenues increased by 24% to £23.4 million (H1 2019: £18.8 million)
  • Licences, milestones & royalties were £10.6 million (H1 2019: £13.3 million), a decline of 20% as the growing royalties and licence fee revenue from Juno/BMS in H1 2020 was not able to match the large £11.5 million ($15 million) milestone payment received from Axovant in H1 2019
  • Operating expenses increased by 41% to £29.1million (H1 2019: £20.6 million)
  • Operating EBITDA1 loss and operating loss were £0.4 million and £5.8 million respectively (H1 2019 losses of £1.4 million and £6.1 million respectively)
  • Gross proceeds of £40.0 million (£38.6m net of expenses) were raised from new and existing investors through a successful placing in June 2020. This provided additional funding to the Group in order to continue to leverage the significant opportunities in the growing cell and gene therapy market, both with current and future partners, and also provided additional resources for the Group manufacture of potential COVID-19 vaccine candidates
  • Cash consumed during operations was £0.9 million compared to £1.3 million generated in H1 2019
  • Cash at 30 June 2020 was £50.6 million (31 December 2019: £16.2 million), which included proceeds from the placing earlier in June
  • The Group’s capital expenditure decreased to £5.3 million (H1 2019: £14.9 million) following the completion of the first phase of construction of the Oxbox bioprocessing facility at the end of 2019

        .
1Operating EBITDA is defined as Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, Fair value adjustments of available-for-sale assets and share based payments.  A reconciliation to GAAP measures is provided on page 9.

OPERATIONAL HIGHLIGHTS (including post period-end events)

Juno Therapeutics / Bristol Myers Squibb Partnership

      -     In March, a new licence and five-year clinical supply agreement was signed with Juno Therapeutics / Bristol Myers Squibb initially for multiple CAR-T and TCR-T programmes. A £7.8 million ($10 million) upfront payment was received by the Group and up to $217 million could be paid in development, regulatory and sales related milestones in addition to undisclosed process development, scale up and batch revenues and with an undisclosed royalty on sales

Novartis Partnership

  • Post the extension of the Novartis partnership by a further five years announced in December 2019, the collaboration continues to strengthen with a sixth vector construct added in the first quarter of 2020
  • Global roll out of Kymriah® in both relapsed or refractory B-cell acute lymphoblastic leukaemia (r/r ALL) and relapsed or refractory diffuse large B-cell lymphoma (r/r DLBCL) indications continues at pace, with more than 25 countries worldwide having approved reimbursement in at least one indication in over 250 qualified treatment centres
  • In August, Novartis announced positive data from the Phase II ELARA trial of Kymriah® in patients with relapsed or refractory (r/r) follicular Lymphoma (FL), with filing for this indication anticipated in the US during 2021. Novartis received FDA Regenerative Medicine Advanced Therapy (RMAT) designation for r/r FL earlier this year

COVID-19 Vaccine and Agreement with AstraZeneca

  • In April, the Group joined a consortium led by the Jenner Institute, Oxford University to rapidly develop, scale and manufacture a potential vaccine for COVID-19, ChAdOx1 nCOV-19. Subsequently, AstraZeneca entered into an agreement with Oxford University for the global development and distribution of the vaccine, renaming the programme AZD1222
  • In May, the Group entered into a one year clinical and commercial supply agreement with AstraZeneca to GMP manufacture the adenoviral vector based COVID-19 vaccine candidate (AZD1222) with multiple batches to be produced through 2020
  • In June, Oxford Biomedica signed a five-year agreement with VMIC (Vaccines Manufacturing and Innovation Centre) to enable the rapid manufacture of viral vector based vaccines and with VMIC to provide equipment for two GMP suites in Oxbox to further scale up AZD1222 or other viral vector vaccine candidates
  • In September, the Group announced an 18-month supply agreement under a three-year Master Supply and Development Agreement with AstraZeneca for large-scale manufacture of AZD1222, for which the Group was paid a £15 million capacity reservation fee. The Group expects, subject to satisfactory scale up of the process and continuation of the vaccine programme, to receive additional revenues in excess of £35 million until the end of 2021

Other Partnership news and updates

  • In July, the Group announced that it had signed a three-year Clinical Supply Agreement (CSA) with Axovant Gene Therapies for the manufacture and supply of Parkinson’s disease gene therapy programme AXO-Lenti-PD. This CSA builds on the worldwide licence agreement signed between the two companies in June 2018
  • In August, the Group signed a development, manufacture and licence agreement with Beam Therapeutics Inc. for next generation CAR-T programmes and put in place a three year clinical supply agreement. This now takes the total number of the Group’s partner programmes to 20

Corporate Developments and Expansion

  • Following completion of the building phase of the new 84,000 sqft manufacturing facility (Oxbox) at the end of 2019, the MHRA regulatory approval of the first two suites was received in May. The first partner batches were being produced within Oxbox by the end of the second quarter 2020
  • In June, the Group welcomed Dr Roch Doliveux as Non-executive Chairman, following the retirement of prior Chairman Dr. Lorenzo Tallarigo

John Dawson, Oxford Biomedica’s Chief Executive Officer, said:
“The first six months of the year, continuing into the second half of 2020, have probably been the busiest I have known in my time at Oxford Biomedica, set against the backdrop of one of the most unusual times in our working history. I am incredibly proud of all of the team for truly excelling in these challenging times. Oxford Biomedica’s position as a world leading Lentiviral vector company continues to grow and since the onset of the COVID-19 pandemic, not only have we signed seven partner/collaboration agreements including a major new agreement with Juno Therapeutics, but we have also grown the underlying bioprocessing and commercial development revenues by 24% and signed two agreements with AstraZeneca for manufacture of their potential COVID-19 vaccine.  The successful Placing in June allows us to continue to exploit the significant opportunities we see in the growing cell and gene therapy market and maximise the opportunities ahead.  We look forward to what will be a busy second half of the year and thank our staff for their dedication and resilience during these unprecedented times.”

Analyst briefing
Management will be hosting a briefing for analysts via conference call and webcast at 13:00 (8:00 ET) today, 17 September 2020.

Dial-in details are:

US Participant Toll Free Dial-In Number: (833) 922-1411       
US Participant International US-Toll Dial-In Number: +1 (918) 922-6506
UK Participant Local Dial-In Number: (0) 20 3107 0289
UK Participant Toll-Free Dial-In Number: +44 (0) 80 0028 8438
Conference ID: 7266616

In order to join the call, all participants will be required to provide the Conference ID Number listed above

Webcast: https://www.lsegissuerservices.com/spark/OxfordBioMedicaUnitedKingdom/events/c16f5ab0-04d0-4d64-906a-a7a6c3b3b958

Enquiries:


Oxford Biomedica plc



John Dawson, Chief Executive Officer
Stuart Paynter, Chief Financial Officer
Catherine Isted, Head of Corporate Development & IR







T: +44 (0)1865 783 000
T: +44 (0)1865 783 000
T: +44 (0)1865 954 161 / E: ir@oxb.com



Consilium Strategic Communications



Mary-Jane Elliott/Matthew Neal


   T: +44 (0)20 3709 5700



Peel Hunt (Joint Corporate Brokers):                     T: +44 (0)20 7418 8900

James Steel
Dr. Christopher Golden

WG Partners (Joint Corporate Brokers):                            T: +44 (0)20 3705 9321

David Wilson
Claes Spång

About Oxford Biomedica
Oxford Biomedica (LSE:OXB) is a leading, fully integrated, gene and cell therapy group focused on developing life changing treatments for serious diseases. Oxford Biomedica and its subsidiaries (the "Group") have built a sector leading lentiviral vector delivery platform (LentiVector®), which the Group leverages to develop in vivo and ex vivo products both in-house and with partners. The Group has created a valuable proprietary portfolio of gene and cell therapy product candidates in the areas of oncology, ophthalmology, CNS disorders, liver diseases and respiratory disease. The Group has also entered into a number of partnerships, including with Novartis, Bristol Myers Squibb, Sanofi, Axovant Gene Therapies, Orchard Therapeutics, Santen, Beam Therapeutics, Boehringer Ingelheim, the UK Cystic Fibrosis Gene Therapy Consortium and Imperial Innovations, through which it has long-term economic interests in other potential gene and cell therapy products. Additionally, the Group has signed a 3-year master supply and development agreement with AstraZeneca for large-scale manufacturing of the adenoviral based COVID-19 vaccine candidate, AZD1222. Oxford Biomedica is based across several locations in Oxfordshire, UK and employs more than 550 people. Further information is available at www.oxb.com

OVERVIEW

The first half of 2020, despite the global COVID pandemic, has seen Oxford Biomedica make great strides forward. In March, Juno/BMS became the Group’s second major cell and gene therapy partner, with four additional partner programmes added to the Group’s partner pipeline. Juno/BMS also became the first company to sign a partnership agreement with Oxford Biomedica following the completion of Oxbox, which received approval for the first two manufacturing suites in May. Financially the Group has continued to post strong growth, with the underlying bioprocessing and commercial development revenues growing by 24% over first half 2019. This demonstrates the determination of our cell and gene therapy partners that the Group continues to process their programmes despite what was going on in the outside world.

Oxford Biomedica’s involvement, initially with the Oxford Consortium and then with AstraZeneca, on their adeno-based COVID vaccine (AZD1222) highlights the Group’s experience, flexibility and capabilities beyond the lentiviral vector space for which it is well known. With spare capacity in the new Oxbox manufacturing facility, the Group is delighted to be working with AstraZeneca on such a globally important programme. The Group ended the first half of the year with a significantly strengthened balance sheet with cash of over £50 million following a successful £40 million placing (£38.6 million net of expenses), which leaves the Group in a strong position to maximise the significant opportunities it sees ahead.

OPERATIONAL REVIEW

Juno Therapeutics / Bristol Myers Squibb Partnership

In March, the Group entered into a major new licence and five-year clinical supply agreement with Juno Therapeutics Inc. (a fully owned subsidiary of Bristol Myers Squibb Inc.) worth up to $227 million for initially multiple CAR-T and TCR-T programmes in oncology and other indications. There are currently four active programmes in development.

Under the terms of the agreement Oxford Biomedica received a £7.8 million ($10 million) upfront payment and will potentially receive up to $86 million in development and regulatory milestones and up to a further $131 million in sales-based milestone payments as well as undisclosed royalties on sales. In addition, the Group will receive undisclosed process development, scale up and batch revenues for these programmes. As part of the agreement Oxford Biomedica will provide Juno access to its new approved manufacturing facility, Oxbox. Of the £7.8 million ($10 million) upfront received, £6.2 million ($8 million) was recognised as license revenue in the period with £1.6m ($2m) deferred to be recognised no later than March 2021.

Novartis Partnership

Following the extension of the Novartis collaboration by a further five years in December 2019 and expansion of the number of vector constructs (including Kymriah®) from two to five, the partnership was further expanded with a sixth vector construct added in the first quarter of 2020. Oxford Biomedica continues to be Novartis’ sole global supplier of lentiviral vector for Kymriah® (tisagenlecleucel, formerly CTL019) and has been able to fully meet their requirements during the course of the COVID crisis.

Global roll out of Kymriah® in both relapsed or refractory B-cell acute lymphoblastic leukaemia (r/r ALL) and relapsed or refractory diffuse large B-cell lymphoma (r/r DLBCL) indications continues at pace with more than 25 countries worldwide having approved reimbursement in at least one indication in over 250 qualified treatment centres. Kymriah® continues to build momentum showing 27% growth in the second quarter of 2020, over the first quarter of 2020, reporting sales in the quarter of $118 million.

In August, Novartis announced positive data from the Phase II ELARA trial of Kymriah® in patients with relapsed or refractory follicular Lymphoma, with the filing in this indication anticipated in the US during 2021. Novartis received FDA Regenerative Medicine Advanced Therapy (RMAT) designation earlier in the year. The RMAT programme was created to expedite the development and review of regenerative medicine therapies intended to treat, modify, reverse or cure a serious disease.

COVID-19 Vaccine and Agreement with AstraZeneca

In April, the Group joined a consortium led by the Jenner Institute, Oxford University, to rapidly develop, scale and manufacture a potential vaccine for COVID-19, ChAdOx1 nCOV-19. Subsequently AstraZeneca entered into an agreement with Oxford University for the global development and distribution of the vaccine, renaming the programme AZD1222.

In May, the Group entered into a one year clinical and commercial supply agreement with AstraZeneca to GMP manufacture adenoviral vector based COVID-19 Vaccine candidate AZD1222. This initial agreement required Oxford Biomedica to manufacture multiple batches of the vaccine. These batches are now expected to be completed in the second half of 2020.

In June, Oxford Biomedica signed a five-year collaboration agreement with VMIC (Vaccines Manufacturing and Innovation Centre) to enable the rapid manufacture of viral vector based vaccines. As part of the agreement VMIC has provided equipment for two GMP manufacturing suites in Oxbox to further scale up AZD1222 or other potentially viral vector vaccine candidates. The agreement also provides a framework for a longer-term partnership between Oxford Biomedica and VMIC, whereby the Group could rapidly provide its commercial scale manufacturing capacity to supply other novel viral vector vaccine candidates for the UK population

In September, the Group announced an 18-month supply agreement under a three year Master Supply and Development Agreement with AstraZeneca for the large-scale manufacture of AZD1222 and was paid a £15 million capacity reservation fee. The Group expects, subject to satisfactory scale up and continuation of the programme, to receive additional revenue in excess of £35 million until the end of 2021.

Beam Therapeutics

Post the period end, in August, Oxford Biomedica signed a Development, Manufacture and License agreement with Beam Therapeutics (Beam), taking the number of the Group’s partner programmes to 20. Beam is a biotech company developing precision genetic medicines through use of base editing. The agreement grants Beam a non-exclusive license to Oxford Biomedica’s LentiVector® platform for its application in next generation CAR-T programmes in oncology and also puts in place a three-year Clinical Supply agreement.

Under the terms of the Agreement, Oxford Biomedica will receive an undisclosed upfront payment, as well as payments related to development and manufacturing of lentiviral vectors for use in clinical trials, and certain development and regulatory milestones. In addition, the Group will receive an undisclosed royalty on the net sales of products sold by Beam that utilise the Group’s LentiVector® platform.

Existing partner updates

During the first half, the Group continued to make progress with its CDMO partnerships despite the turbulent external environment. This includes the Group’s $105 million partnership with Sanofi (formally Bioverativ) for the development and manufacture of lentiviral vectors targeting the treatment of haemophilia, where Sanofi has recently stated that they expect to enter the clinic by 2022.

In May, Orchard Therapeutics (Orchard) announced a new strategic plan with an emphasis on neurometabolic disorder such as their MPS-IIIA (OLT-201) programme while reducing investment on other programmes such as ADA-SCID (OTL-101). OLT-201 is moving ahead in clinical trials with enrolment in their POC study now completed with Orchard expecting interim data to be released in 2021.

Other programmes with Santen and the UK Cystic Fibrosis Gene Therapy Consortium/ Boehringer Ingelheim have also continued to progress.

Proprietary Gene Therapeutics Development

Axovant Gene Therapies

Following on from the initial worldwide licence agreement signed in June 2018, in July this year the Group announced that it had now also signed a three-year Clinical Supply Agreement (CSA) with Axovant Gene Therapies for manufacture and supply of Parkinson’s disease gene therapy programme AXO-Lenti-PD.

Under the terms of the CSA, Oxford Biomedica will manufacture GMP batches for Axovant to support the ongoing and future clinical development of AXO-Lenti-PD. Axovant is currently conducting a Phase 2 SUNRISE-PD trial with AXO-Lenti-PD. Dosing of all patients in the second cohort is completed with 6-month safety and efficacy data expected in the fourth quarter of 2020 with Axovant expecting to initiate the sham-controlled part of the SUNRISE-PD Phase 2 study in 2021.

Sanofi – Ocular assets

In June, the Group announced it had been informed by Sanofi that it intended to return the rights to ophthalmology programmes SAR422459 for Stargardt’s disease and SAR421869 for Usher Syndrome type 1b. Once returned the Group will undertake its own internal evaluation to determine the potential future for these programmes and decide whether to commit further resources to them.

Unencumbered proprietary pipeline programmes

In the first quarter the Group undertook an internal pipeline review to prioritise where preclinical investment will be made on its wholly-owned early-stage pipeline assets. The current portfolio consists of five programmes targeting a number of indications in ophthalmology, oncology, liver and CNS disorders.

OXB-302 (CART-5T4) is currently the Group’s priority candidate and targets haematological tumours. The 5T4 antigen has been shown to be highly expressed on various haematological tumours as well as most solid tumours with restricted expression on normal tissues. The Group continues to advance preclinical work on OXB-302 as the Group gets the programme ready for entry into the clinic.

OXB-203, currently in preclinical studies, is targeting Wet AMD and uses our technology to deliver a gene to express afibercept (a VEGF-trap). This programme builds on the demonstrated long term gene expression data seen with its predecessor OXB-201. In addition, the Group is continuing preclinical work on OXB-204 (LCA10) and OXB-103 (ALS) and a new preclinical program, OXB-401 (liver indication) has been initiated.

Papyrus Therapeutics, Inc. research collaboration agreement

In August, the Group signed a research collaboration agreement with Papyrus Therapeutics Inc., an emerging biopharma company developing novel extracellular tumour suppressor therapies for the treatment of cancer. This early stage collaboration will assess what impact and potential therapeutic benefit Papyrus’ PYTX-002, a potential first-in-class gene replacement therapy, may confer on a CAR-T cell therapy developed by Oxford Biomedica, initially in preclinical in vivo models of solid tumours.

Innovation and LentiVector® platform development

The Group’s world leading LentiVector® platform is built on four pillars: expertise, IP (both patents and know-how), facilities and quality systems. The LentiVector® platform underpins not only the collaborations with Oxford Biomedica’s partners but also Oxford Biomedica’s own proprietary pipeline. The Group is continuing to innovate by adding new IP to its platform such as with the TRiPSystem™, SecNuc™, U1 / U2 in order to increase productivity and quality and LentiStable™ for packaging and producer cell lines.

Investment in automation and robotics is also enabling the continued development of the LentiVector® platform and the research and development collaboration signed with Microsoft to improve yield and quality of next generation vectors continues to progress well.

Expansion of capacity

Post completion of the building phase of the new 84,000 sqft manufacturing facility (Oxbox) at the end of 2019, MHRA regulatory approval of the first two suites and supporting areas such as warehouse, cold chain facilities and QC laboratories was received in May. First partner batches were being produced within Oxbox by the end of the second quarter. Following on from the agreement with VMIC for equipment for the two further suites, the first of these has now received MHRA approval and vaccine production commenced. The Group expects the second of these suites and therefore all four suites in the first phase of Oxbox development to be operational by early in the fourth quarter 2020. Additionally, the instalment of the equipment for the first fill/finish suite is progressing well and is expected to be completed by year end. This first phase of development fits out approximately 45,000 sqft with the remaining fallow area available for flexible expansion in the future.

Building work is also currently being undertaken at Windrush Court to convert office space into GMP laboratories to meet the expected near term demand in commercial development and analytics. The expansion of these GMP facilities is expected to be completed by the end of 2020. In conjunction with this, a lease has been taken on at a new site within the Oxford Business Park, close to Oxbox as a new Corporate Head Office to house the Senior Executive Team and various support functions.

Corporate and organisational development

In June 2020, Oxford Biomedica successfully completed a £40 million placing to new and existing investors, with net proceeds of £38.6 million. A total 5,000,000 new ordinary shares were issued at 800p a 3.5% discount to the prior day’s closing price. The proceeds of the placing will provide funding to continue to exploit the significant opportunities in the growing cell and gene therapy market both with current and future partners. It will also provide additional resources for the Group’s involvement in potential COVID-19 candidates. In addition, it will enable the Group to remain at the forefront of innovation of lentiviral technology as it continues to progress towards the Group’s goal of industrialising lentiviral vectors and driving innovations to enable further scalable cost efficient manufacturing.

In June, the Group also announced the appointment of Dr. Roch Doliveux as Non-executive Chairman following retirement of former chairman Dr. Lorenzo Tallarigo. Dr. Doliveux was previously the Chief Executive Officer of UCB SA for ten years during which time he transformed the company from a diversified chemical group into a global biopharmaceutical leader and is currently the Chairman of the Board of Directors at Pierre Fabre S.A and a Non-Executive Director at Stryker Corporation and UCB SA.

Outlook
With the growth of the Group’s partner programmes to 20, the Group expects the underlying lentivector based revenues to continue to grow from bioprocessing and commercial development activities and, as previously observed, the Group expects a stronger second half to the year. In addition, the partnership with AstraZeneca for their potential COVID-19 vaccine (AZD1222) is likely to boost revenues in the year in excess of £10 million subject to successful scale up and regulatory approval of the fourth bioprocessing suite within Oxbox early in the fourth quarter of 2020. Operating EBITDA for the Group is expected to be in the low to mid-single digit million range for the year on this basis.

Capex spend in the second half of the year will be higher than the spend in the first half with conversion of the office space within Windrush Court to GMP laboratories and final costs associated with the completion of the installation of the fill/finish line within Oxbox.

Head count is expected to rise from 584 as of the 30 June to over 650 by year end, as employees are recruited for the additional manufacturing suites within Oxbox as well as in supporting areas such as QA and engineering.

Discussions and feasibility studies are ongoing with various other potential gene and cell therapy partners and the Group aims to increase not only the number of partners but also the number of programmes worked on by existing partners and reconfirms that three new lentiviral vector-based CDMO partnership agreements are expected to be signed during 2020. Additionally, the Group is targeting the spin out / out-licence of one in-house product candidate during 2020 and potential partnership discussions are ongoing, although timings of these transactions are less predictable than those in the CDMO area.

Looking further ahead, with a strengthened balance sheet and with an ever increasing number of partners working with the Group, Oxford Biomedica has never been in a stronger position to capitalise on its world-leading position and to deliver value to shareholders as the Group takes advantage of the opportunities ahead.

Financial Review

The first half of 2020 has been a period of operational resilience and revenue growth for the Group. Whilst the spread of the Coronavirus pandemic saw adjustments to the Group’s operating methods and employees working from home where possible, the Group was able to continue bioprocessing product and perform commercial development activities in its laboratories throughout the period. A great achievement which allowed us to generate revenue growth during a very difficult period for businesses across the world. From first joining the Oxford University Jenner institute consortium in April, the Group ultimately signed an agreement with AstraZeneca in May to develop and bioprocess batches of their COVID vaccine. This, together with the new commercial agreements entered into with Juno/BMS and Beam, should see the Group continue to deliver increased commercial activity through the remainder of 2020 if it is able to continue without its operations being interrupted.

The Group also raised £40 million of new equity (£38.6 million net of expenses) in June 2020 in order to refurbish its Windrush Innovation Centre, exploit new opportunities in the cell and gene therapy market, and also provide additional resources for the work the Group is involved with relating to potential COVID-19 candidates.

The key financial indicators used by the Board are set out in the table below and the highlights are:

  • Revenue (£34.0 million) increased by 6% over H1 2019 (£32.1 million) as a result of the 24% increase in bioprocessing and commercial development revenues and £10.6 million of Licence fees, consisting mainly of the Juno/BMS license fee and Novartis royalties
  • Operational results (Operating loss and Operating EBITDA1loss) of £5.8 million and £0.4 million respectively improved compared to prior year due to higher revenues partly offset by an investment in its bioprocessing operations and people due to the Oxbox bioprocessing facility coming online in H1 2020
  • Operating activities used cash of £0.9 million compared to generating £1.3 million in H1 2019 as increased revenues in H1 2020 were not yet sufficient to offset the additional investment in our operations
  • Capital expenditure decreased as expected from £14.9 million in H1 2019 to £5.3 million in H1 2020 mainly as a result of the completion of construction of the Oxbox bioprocessing facility
  • Cash burn2 decreased from a net outflow of £16.9 million in H1 2019 to an outflow of £4.2 million due to the reasons explained above
  • Cash at 30 June 2020 was £50.6 million compared to £26.1 million at 30 June 2019
KEY FINANCIAL INDICATORS (£ m)H1 2020H1 2019
RevenuesBioprocessing/commercial development23.418.8
Licence fees, milestones & royalties10.613.3
Total34.032.1
Operating loss(5.8)(6.1)
Operating EBITDA1(0.4)(1.4)
Cash (consumed)/generated from operating activities(0.9)1.3
Capital expenditure(5.3)(14.9)
Cash burn2     (4.2)    (16.9)
Period end cashCash50.626.1
HeadcountPeriod end584480
Average575465
  1. Operating EBITDA (Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, Fair value adjustments of available-for-sale assets and Share Based Payments) is a non-GAAP measure often used as a surrogate for operational cash flow as it excludes from operating profit or loss all non-cash items, including the charge for share options. A reconciliation to GAAP measures is provided on page 9.
  2. Cash burn is net cash generated from operating activities and less net finance costs paid plus capital expenditure. A reconciliation to GAAP measures is provided on page 12.

The Group evaluates its performance by making use of alternative performance measures as part of its Key Financial Performance Indicators (refer table above). The Group believes that these Non-GAAP measures, together with the relevant GAAP measures, provide an accurate reflection of the Group’s performance over time. The Board has taken the decision that the Key Financial Performance Indicators against which the business will be assessed are Revenue, Operating EBITDA and Operating Profit/(loss).

Revenue

Revenues were £34.0 million in H1 2020, 6% above the £32.1 million achieved in H1 2019. 

£mH1 2020H1 2019
Bioprocessing/commercial development23.4118.81
Licence fees, milestones & royalties10.613.3
Revenue34.032.1

Revenues from bioprocessing/commercial development were 24% higher in H1 2020 as compared to H1 2019, with increased commercial development revenues driven by a greater volume of development activity from customers, Juno/BMS, Beam, and the Cystic Fibrosis Consortium. Revenues generated from bioprocessing clinical and commercial batches increased due to a higher number of batches bioprocessed for Orchard, Juno/BMS and Axovant.  

Revenues from licence fees, milestones and royalties, including the £6.2 million ($8 million) Juno milestone achieved in H1 2020, represented a decrease of 20% when compared to the prior year due to £11.5 million ($15 million) Axovant milestone achieved in H1 2019.

   1      Included within H1 2019 bioprocessing/commercial development revenues is £0.4m of revenues, recognised as a result of the customer process development claim issue identified in the 2019 Annual report, which was reversed in H2 2019 when the issue was identified by the Group. In H1 2020 after further investigations it was subsequently identified that a portion of the development work was unaffected by the issue and thus the £0.4m revenues was re-recognised in H1 2020. Refer note 15 page 27 for further information.

Operating EBITDA

£mH1 2020H1 2019
Revenue34.032.1
Other operating income0.30.5
Total expenses1(34.7)(34.0)
Operating EBITDA2(0.4)(1.4)
Depreciation, amortisation, share option charge and fair value adjustments of available-for-sale assets(5.4)(4.7)
Operating (loss)/profit(5.8)(6.1)

1 Cost of goods plus research, development and bioprocessing costs excluding depreciation, amortisation and share option charge. A reconciliation to GAAP measures is provided on page 10.
2 Operating EBITDA is defined as Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, Fair value adjustments of available-for-sale assets and share based payments.

Total expenses in H1 2020 were £34.7 million, compared with £34.0 million in H1 2019, a 2% increase on the H1 2019. The increase was driven by the investment in additional bioprocessing capacity required in bringing online the Oxbox bioprocessing facility in H1 2020.

As a result of the increased expenses, the Operating EBITDA loss in H1 2020 was £0.4 million. In H1 2019, the Group generated an Operating EBITDA loss of £1.4 million, the difference being £1.0 million.

Total expenses

In order to provide the users of the accounts with a more detailed explanation of the reasons for the year on year movements of the Group’s operational expenses included within Operating EBITDA, the Group has added together research and development, bioprocessing and administrative costs and has removed depreciation, amortisation and the share option charge as these are non-cash items which do not form part of the Operating EBITDA alternative performance measure. As Operating profit/(loss) is assessed separately as a key financial performance measure, the year on year movement in these non-cash items is then individually analysed and explained specifically in the Operating and Net profit/(loss) section. Expense items included within Total Expenses are then categorised according to their relevant nature with the year on year movement explained in the second table below:

£mH1 2020H1 2019
Research and development costs15.212.5
Bioprocessing costs19.24.1
Administrative expenses4.74.0
Operating expenses29.120.6
Depreciation, amortisation & share option charge(4.7)(3.5)
Adjusted operating expenses24.417.1


Cost of Sales


10.3


16.9
Total expenses34.734.0

1 Bioprocessing costs have increased from the prior period due to additional facility costs, headcount and related spend incurred due to the Group’s investment in additional bioprocessing capacity at Oxbox. 

The table below shows total expenses by type of expenditure (excluding depreciation, amortisation and other non-cash items):

£mH1 2020H1 2019
Raw materials, consumables and other external bioprocessing costs6.47.7
Personnel-related21.217.9
External R&D expenditure3.13.9
Other costs4.04.5
Total expenses34.734.0

Raw materials, consumables and other external bioprocessing costs have decreased as a result of a lower number of batches bioprocessed in H1 2020 as compared to H1 2019, with all the batches in H1 2020 have been produced using our more efficient lower cost bioreactor process. Personnel related costs are higher due to average employee numbers increasing from 465 in H1 2019 to 575 in H1 2020. External R&D expenditure was lower due to lower levels of research and clinical development spend due to the impact of COVID-19.  Other costs were in line with prior year as the recognition of a liability from a customer regarding certain process development work performed in 2019 was offset by a higher large company research and development tax credit.

Operating loss and net loss

£mH1 2020H1 2019
Operating EBITDA1(0.4)(1.4)
Depreciation, amortisation and share option charge(4.7)(3.5)
Change in fair value of assets at fair value through profit & loss(0.7)(1.2)
  Operating loss(5.8)(6.1)
Interest(0.4)(5.0)
Foreign exchange revaluation-(1.0)
Taxation(0.5)1.9
Net loss(6.7)(10.2)

1 Operating EBITDA is defined as Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, Fair value adjustments of available-for-sale assets and share based payments.
In arriving at the Operating loss, the Operating EBITDA loss of £0.4 million was further impacted by additional depreciation, amortisation and the share option charge; as well as the change in fair value of assets at fair value through profit & loss.

Depreciation increased by £0.8 million mainly due to depreciation on the increased asset base including the Oxbox manufacturing facility and related bioprocessing assets. The share option charge increased by £0.4 million due to the increased employee headcount.

In H1 2020 a £0.7 million (2019: £1.2m loss) change in fair value was recognised on the Orchard Therapeutics asset held at fair value through profit and loss based on the share price at the date the shares were sold, as well as the value at 30 June 2020 for those shares still held by the Group.

The impact of these charges resulted in an operating loss of £5.8 million compared to a loss of £6.1 million in 2019.

The interest charge decreased by £4.6 million compared to H1 2019 as a result of the early repayment of the Oaktree loan, with only interest arising on the IFRS 16 leases remaining as compared to £0.3m in H1 2019.

As the Oaktree loan was repaid in June 2019 there was no gain or loss on revaluation of the loan in 2020.

The tax credit in H1 2020 reverted to a liability of £0.5m as the Group ceased being eligible to claim a research and development tax credit under the Government’s small company scheme. The £0.5m liability represents a liability on the large company research and development taxation credit included under Other costs which the Group is still able to claim.

As a consequence of the above, the net loss for H1 2020 was £6.7 million, as compared to a loss of £10.2 million in H1 2019.

Segmental analysis

Reflecting the way the business is being managed by the Senior Executive Team, the Group reports its results within two segments, namely the “Platform” segment which includes the revenue generating bioprocessing and process development activities for third parties, and internal technology projects to develop new potentially saleable technology, improve the Group’s current processes and bring development and manufacturing costs down. The other segment, “Product”, includes the costs of researching and developing new product candidates.

H1 2020

£mPlatformProductTotal
Revenues33.70.334.0
Operating EBITDA11.8(2.2)(0.4)
Operating loss(3.1)(2.7)(5.8)

H1 2019

£mPlatformProductTotal
Revenues19.312.832.1
Operating EBITDA1(11.0)9.6(1.4)
Operating (loss)/profit(15.4)9.3(6.1)

1  A reconciliation to GAAP measures is provided on page 9.

Revenues from the platform segment were higher than H1 2019 due to an increase in bioprocessing and commercial development revenues, as well as £6.2m of Juno/BMS license fee recognised.  Operating results were improved mainly due to the revenue increase of £14.4 million.

Results from the product segment were lower as the £11.5 million ($15 million) Axovant milestone achieved in H1 2019 on dosing of the first patient in the second cohort did not recur.

Cash flow

£mH1 2020H1 2019
Operating loss(5.8)(6.1)
Depreciation, amortisation and share option charge4.73.5
Revaluation of equity investments0.71.2
Operating EBITDA(0.4)(1.4)
Working capital(0.5)2.7
Cash (consumed)/generated from operations(0.9)1.3
Capital expenditure(5.3)(14.9)
Sale of available-for-sale assets2.5-
Interest paid, less received(0.5)(3.3)
Cash burn(4.2)(16.9)

As discussed above, the Operating EBITDA loss for the first six months of 2020 was £1.0 million higher than the £1.4 million loss achieved in H1 2019. The negative inflow from working capital was mainly as a result of the increased cost base due to investment in increasing our bioprocessing capacity. Capital expenditure decreased from £14.9 million in H1 2019 to £5.3 million in H1 2020 as the construction of the first phase of the Oxbox bioprocessing facility came to an end. 

Interest paid of £0.5 million in H1 2020 was £2.8 million lower than in H1 2019 mainly due to the repayment of the Oaktree loan at the end of June 2019.

Statement of financial position

Non-current assets – Property, plant and equipment increased from £61.9 million to £66.1 million due to the £5.3 million of capital expenditure incurred as part of the construction and fit-out of the Oxbox bioprocessing facility, and £2.4 million of right-of-use assets recognised upon signing of the corporate office lease in Oxford.

Current assets – Assets at fair value through profit & loss decreased by £2.4m as a result of the sale of Orchard shares, and the devaluation of the Orchard investment based on the quoted Orchard share price at year end.  Trade and other receivables and Contract assets increased from £30.0 million to £31.4 million mainly due to the increased large company research and development tax credit in H1 2020.  Inventories increased to £3.2 million from £2.6 million at 31 December 2019 due to increased raw material balances as a result of forecasted increased bioprocessing activities and Brexit and COVID-19 stock building.  Current tax assets have decreased by £0.5 million due to the notional tax charge on the large company research and development tax credit.

Current liabilities – Trade and other payables have increased from £14.3 million at the start of the year to £16.4 million due to increased employee headcount and operational activities. Contract liabilities have increased by £0.2 million due to the recognition of income received in advance in relation to commercial development activities. Deferred income decreased due to the recognition of Innovate grant income. Lease liabilities increased by £0.3 million due to the recognition of an IFRS 16 liability with regards to the new corporate office.

Non-current liabilities – A £0.6m provision was recognised as a result of the recognition of a liability due to a customer regarding an aspect of certain process development work performed in 2019 being the main contributor to the £0.7 million increase in provisions. Lease liabilities increased by £1.9 million due to the recognition of an IFRS 16 liability with regards to the new corporate office. Contract liabilities decreased by £0.6 million as the liabilities became current. Deferred tax decreased due to the sale of shares and the change in fair value of the Orchard asset held at fair value through profit and loss.

The Group’s cash resources at 1 January 2020 were £16.2 million. Cash outflows from operations were £0.9 million. Other significant cash flows were £38.6 million of net cash received from equity issued and £2.5 million from the sale of Orchard shares, offset by capital expenditure of £5.4 million. The cash balance at 30 June 2020 was £50.6 million.

Financial outlook

The Group continues to target improved financial performance in 2020. The contracts signed in 2020 with Juno/BMS, AstraZeneca, Beam and Axovant, together with continued bioprocessing and commercial development activities performed for existing customers have driven the growth in revenues in H1 2020. Additive commercial development and bioprocessing revenues are expected from these partnerships in the future with the Group expecting to continue growing it commercial development activities and to also start filling up the new capacity generated through bringing Oxbox online in May 2020.

As before, the Group continues to recognise the importance of focusing on building and maintaining its commercial relationships with its customers, old and new. The success of our customers is seen as key to driving growth in new customer relationships in the rest of 2020 and 2021.

The Group continues to develop its proprietary pipeline, in preparation for further discussions regarding out-licensing or spinout of these programmes, but also to determine which programmes it would focus on in preclinical development to potentially take through into early stage clinical studies in the coming 12-18 months.

Principal risks and uncertainties

The principal risks and uncertainties facing the Group are unchanged, other than as set out below, from those set out in the 2019 Annual Report & Accounts which is available on the Group’s website at www.oxb.com.

UK’s departure from European Union (“Brexit”)

The impact of the UK’s departure from the European Union is not yet clear but it may significantly affect the fiscal, monetary and regulatory landscape in the UK, and could have a material impact on the UK’s economy and the future growth of its industries, including the pharmaceutical and biotechnology industries. 

Depending on the free trade agreement terms negotiated between EU Member States and the UK following Brexit, the UK could lose access to the single European Union market and to the global trade deals negotiated by the European Union on behalf of its members. Although it is not possible at this point in time to predict fully the effects of the free trade agreement with the European Union, it could have a material adverse effect on the Group’s business, financial condition and results of operations. In addition, it may impact the Group’s ability to comply with the extensive government regulation to which it is subject and impact the regulatory approval processes for its product candidates.

COVID-19

As a result of the COVID-19 pandemic, the Group conducted an assessment of the potential financial and operational risks to the business. While the Group is yet to experience any significant impact from the virus, there may be an impact on revenue, supply chain and operating facilities if the situation worsens. Management continues to constantly monitor the ongoing situation.

The Group has implemented a daily senior management working group to monitor current COVID-19 developments and GOV.UK guidance, to risk assess the Group’s supply chain and to direct the Group’s phased response. The Group is working with staff, customers and suppliers to monitor any potential disruption and, so far, the Group has not experienced any, and does not currently expect to experience, significant supply issues or any changes in overall customer demand.

The Group continues to monitor the potential impact on the supply chain, with a particular focus on key manufacturing and process development inventories. To date we have not seen any impact but we are aware there is the potential for shortages in certain inventories globally.

The Group has a duty of care towards all employees, and therefore we expect some of our staff to be required to self-isolate to prevent the possible spread of infection. The Group has taken action to mitigate the spread of infection at our facilities through enhanced cleaning processes, staggering of shifts and the provision of hand sanitiser in common areas. The Group continually assesses the risks for employees, regularly communicates with staff on the ongoing situation, and has implemented steps to contain any spread such as publicising good personal hygiene practices, enforcing a travel management prevention strategy and encouraging people to work from home. 

As part of the 2020 strategy, the Group has increased the level of finished goods held in warehouses which will mitigate the risk in the short term against labour shortages and subsequent production delays at our key suppliers.
Going concern

The financial position of the Group, its cash flows and liquidity position are described in the primary statements and notes to these financial statements.

Notwithstanding a loss for the half year ended 30 June 2020 of £6.7 million and operating cash outflows for the year of £0.9 million, the financial statements have been prepared on a going concern basis which the Directors consider to be appropriate for the following reasons.

The Group has raised an additional £40 million in cash through a successful equity placement during June 2020 and including this have £50 million in cash and cash equivalents as at 30 June 2020.

The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these interim financial statements which indicate that, taking account of severe but plausible downsides, including the impacts of COVID-19, the Group will have sufficient funds, through cash balances and operational activities, to meet its liabilities as they fall due for that period.

Consequently, the Directors are confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the interim financial statements on a going concern basis.

Although the UK’s decision to leave the European Union may significantly affect the fiscal, monetary and regulatory landscape in the UK, the Group has assessed the future impact of Brexit on its operations to be minor.  

Therefore, the Directors have continued to adopt the going concern basis of preparation in the interim financial statements.

Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2020

Six months ended
30 June 2020
Unaudited
Six months ended
30 June 2019
Unaudited
Notes£’000£’000
Revenue33,979 32,101
Cost of sales (10,314) (16,831)
Gross profit 23,665 15,270


Bioprocessing costs


(9,195)


(4,116)
Research and development costs(15,168)(12,484)
Administrative expenses(4,692)(4,028)
Other operating income327463
Change in fair value of available-for-sale asset8(703)(1,166)
Operating loss(5,766)(6,061)
Finance income 13 70
Finance costs6 (373) (6,122)
Loss before tax (6,126) (12,113)
Taxation (553) 1,945
Loss and total comprehensive expense for the period (6,679) (10,168)
Basic and diluted loss per ordinary share5(8.69p)(14.83p)

The notes on pages 19 to 27 form part of this financial information.

Consolidated statement of financial position
as at 30 June 2020

Notes30 June
2020
Unaudited
£’000
31 December
2019
Audited
£’000
Assets
Non-current assets
Intangible assets84                   95
Property, plant and equipment7              66,094          61,932
Trade and other receivables10                3,605             3,605
Deferred tax assets                       -  359
              69,78365,991
Current assets
Inventory93,174             2,579
Assets held for sale8366             2,719
Trade and other receivables1014,20916,639
Contract assets1117,18513,406
Current tax assets4,8585,351
Cash and cash equivalents1250,619             16,243
              90,411 56,937
Current liabilities
Trade and other payables13              16,391          14,297
Contract liabilities              13,394          13,156
Deferred income647             1,006
Lease liabilities14                    827                482
              31,25928,941
Net current assets              59,152 27,996
Non-current liabilities
Lease liabilities149,789             7,907
Provisions155,806             5,086
Contract liabilities1,063
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What’s New in the June 2020?

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System Requirements for June 2020

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