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Oxford BioMedica in $100 million manufacturing deal with Novartis

Published on 06/07/17 at 11:12am

Oxford BioMedica has announced that it has signed a contract with Novartis to supply the company with materials in a three-year contract. The deal is worth $10 million in up-front fees but this could extend beyond the $100 million mark over the full course of the deal, dependent on performance incentives.

In particular, the company will supply lentiviral vectors used in the production of Novartis’ novel cell therapy, CTL019. It will also supply the company with undisclosed CAR-T products. The deal also contains the potential to extend the agreement for a further two years.

The timing of the announcement comes shortly before CTL019 is set to be discussed by the FDA advisory committee on 12 July. The manufacturing agreement clearly indicates that Novartis has full confidence that the product will make its way through to patients without too much difficulty. Novartis has the CAR-T therapy penned down as a potential blockbuster.

Commenting on the announcement, John Dawson, Chief Executive Officer of Oxford BioMedica, said: “Today’s news demonstrates the value of our LentiVector platform and the quality of work we have delivered to Novartis over the last few years. The new deal with Novartis will strengthen the Group’s balance sheet immediately and will support the Group’s continued growth over the next three years. Oxford BioMedica is recognised as a world leader in the field of lentiviral vectors and we are delighted to be supporting Novartis and patients with commercial supply of the lentiviral vector used to generate CTL019.”

CTL019 received Breakthrough Therapy designation based on data from Novartis’ Phase 2 trial data in April of this year, with the trial looking into the potential for the treatment of adults with relapsed and refractory diffuse large B-cell lymphoma. Interim trial results that were posted displayed strong results with 37% of patients achieving a complete response.

Ben Hargreaves

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