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Oxford BioMedica (LSE: OXB) has lengthy been considered one of my favorite (and most attention-grabbing) FTSE 250 picks. The cell and gene remedy pioneer is paving the best way for world accessibility to life-changing procedures to deal with ailments like Parkinson’s.
The corporate operates on a contract growth and manufacturing organisation (CDMO) technique. It companions with pharmaceutical and biotech companies to supply end-to-end providers for drug growth and manufacturing.
Elevated business recognition coupled with important US growth helped it obtain 100% share value progress over the previous six months.
So let’s check out why I imagine it’s one of the crucial thrilling corporations within the UK proper now.
US growth
Earlier this 12 months, Oxford BioMedica accomplished the acquisition of an FDA-approved viral vector manufacturing facility in North Carolina for $4.5m. The transfer drastically will increase its US commercial-scale manufacturing capability. It additionally improves service supply for its North American shopper base, notably within the high-growth adeno-associated virus (AAV) subject.
The positioning incorporates a number of drug substance suites, a fill-finish suite and area prepared for additional growth. Key features are anticipated to be operational in Q1 2026. It additionally enhances the companies already well-established US community, with an present Massachusetts web site centered on early-stage growth.
The acquisition helps cement the corporate’s dedication to above-market progress and EBITDA profitability from fiscal 2025 onwards. It expects a single-digit achieve from the acquisition in 2025, broadly offsetting any related prices for the brand new facility. Notably, funding for the growth was secured through a £60m share placement and a brand new $125m mortgage facility raised this 12 months.
Groundbreaking know-how
Regardless of being a comparatively small and so-far unprofitable firm, I imagine Oxford BioMedica’s on the forefront of innovation within the UK. And don’t simply take my phrase for it — it’s been formally recognised as a ‘Champion’ on the 2025 CDMO Management Awards Europe within the Cell & Gene Remedy class.
Winners of the distinguished awards are chosen based mostly on direct suggestions from biopharma professionals evaluating high quality, capabilities, experience, and reliability. It validates the corporate’s imaginative and prescient to grow to be a pure-play, innovation-led CDMO working a number of websites throughout the UK, US and France.
What this implies for buyers
In relation to new, developmental know-how, the dangers can’t be ignored. Oxford BioMedica posted a £43m loss in fiscal 2024 and has a trailing 12-month lack of £37m as of late 2025. To satisfy expectations, it could want to realize an aggressive 68% common annual progress charge within the coming two years.
Any deviation beneath this progress trajectory might delay profitability considerably and harm the share value. And with at the moment extra debt than fairness, the monetary influence may very well be difficult.
Nonetheless, contemplating its huge moat, spectacular £222m order guide and profitable acquisitions, I feel it’s in a powerful place to satisfy these targets. In H1 2025, it delivered a 44% year-on-year income improve to £73.2m, outpacing analyst expectations and decreasing working losses by 59%.
As such, I feel its future holds important promise, making it one of the crucial compelling progress shares to think about on the FTSE 250.
