Oxford Biomedica plc, a leading cell and gene therapy contract development and manufacturing organization (CDMO), has completed the acquisition of a viral vector manufacturing facility in Durham, North Carolina, for $4.5 million. The transaction, signed and closed on Tuesday, represents a strategic expansion of the company's commercial-scale manufacturing capabilities in the United States.
Strategic Expansion in Viral Vector Manufacturing
The acquired facility, purchased from RTP Operating, LLC, a subsidiary of National Resilience Holdco, Inc., is an FDA-approved, state-of-the-art manufacturing site that significantly enhances Oxford Biomedica's viral vector production capacity. The company paid $4.5 million (£3.4 million) in cash for the assets, with integration planning already underway.
The facility is specifically designed to support scalable vector manufacturing and provide end-to-end services, positioning Oxford Biomedica to better serve late-stage and commercial programs, particularly in the adeno-associated virus (AAV) field. This acquisition expands the company's viral vector manufacturing capacity in the U.S. to commercial scale, enhancing Good Manufacturing Practice (GMP) capabilities and services for clients across North America.
Operational Timeline and Workforce Expansion
Key functions at the Durham facility are expected to be operational by the first quarter of 2026. Oxford Biomedica plans to hire additional staff to bring the site to full commercial readiness and increase fill-finish capacity, ensuring the facility can meet the growing demand for viral vector manufacturing services in the gene therapy sector.
Financial Impact and Strategic Outlook
The company expects a single-digit gain in 2025 that will broadly offset acquisition-related and operational costs associated with the new facility. Oxford Biomedica has reaffirmed its financial guidance, projecting above-market growth and achievement of EBITDA profitability from the full year 2025.
The acquisition aligns with Oxford Biomedica's strategic goal to strengthen its global position in viral vector manufacturing, a critical component of the expanding gene therapy market. The enhanced manufacturing capabilities are expected to enable the company to better support its clients' commercial-scale production needs while maintaining its quality and innovation leadership in the cell and gene therapy CDMO space.
Market response to the acquisition has been positive, with Oxford Biomedica's shares closing 3.58% higher at 637 pence on the London Stock Exchange on Monday, reflecting investor confidence in the strategic expansion.
