January 31, 2022 -- Oxford Biomedica and Homology Medicines have agreed to establish a high-performing, full scope, adeno-associated virus (AAV) manufacturing and innovation business in the U.S. The agreement is accretive to Oxford Biomedica's revenue growth, with contribution from Homology and the potential future customer pipeline.
Under the agreement, Oxford will establish a presence in the U.S. and will offer global pharmaceutical and biotechnology clients manufacturing expertise in AAV and lentiviral-based cell and gene therapies. Oxford will provide access to Homology's end-to-end manufacturing capabilities.
Oxford said it will incorporate 125 AAV manufacturing experts, an experienced team, high-quality good manufacturing practices (GMP) vector production capabilities, over 40 developed analytical assays, and an established breadth of vector characterization in a GMP facility near Boston.
The new business will pay Homology $130 million upfront and invest $50 million to fund Oxford Biomedica Solutions. Oxford will have an 80% ownership stake in the new company, and Homology will own 20%. The transaction is expected to close in the first quarter of 2022, subject to the satisfaction of certain closing conditions, including requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.