FILE PHOTO: Oxford/AstraZeneca's COVID-19 vaccine at a vaccination

Oxford Biomedica Lifts Outlook as AstraZeneca Ramps Up Vaccine Output

Shares of the cell therapy firm, which has an agreement to mass-produce AstraZeneca’s COVID-19 vaccine, rose 6.2% in early trading.

Oxford Biomedica raised its forecast for cumulative revenues from AstraZeneca by end-2021 to more than 100 million pounds ($141.82 million) from more than 50 million pounds earlier. The company did not provide any other details on its deal.

Liberum analysts said the increased supply deal was a “huge endorsement” of Oxford Biomedica’s capabilities, and that a further extension from AstraZeneca feels “increasingly likely”.

AstraZeneca has had a bruising start to the year as it struggled with vaccine production and faced a legal battle after cutting deliveries to Europe.

Oxford Biomedica was spun off in 1995 from the University of Oxford, which developed the COVID-19 vaccine before licensing it to AstraZeneca in April 2020.

The company, which signed the 18-month supply deal with AstraZeneca in September 2020, did not immediately respond to a Reuters request for a comment.

($1 = 0.7051 pounds)

(Reporting by Vishwadha Chander in Bengaluru; Editing by Devika Syamnath)