Saving Lives
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Saving lives Annual report and accounts 2020 Oxford Biomedica in brief Oxford Biomedica is a leading, fully integrated, cell and gene therapy group focused on developing life changing treatments for serious diseases. Cell and gene therapy is the treatment of disease by the delivery of therapeutic DNA into a patient’s cells. This can be achieved either in vivo (referred to as gene therapy) or ex vivo (referred to as cell therapy), the latter being where the patient’s cells are genetically modified outside the body before being re-infused. Oxford Biomedica and its subsidiaries (the “Group”) have built a sector leading lentiviral vector delivery system, LentiVector® platform, which the Group leverages to develop in vivo and ex vivo products both in-house and with partners. The Group has created a valuable proprietary portfolio of cell and gene therapy product candidates in the areas of oncology, ophthalmology, CNS disorders and liver diseases. The Group has also entered into a number of partnerships, including with Novartis, Juno Therapeutics/Bristol Myers Squibb, SIO Gene Therapies, Orchard Therapeutics, Santen, Beam Therapeutics, Boehringer Ingelheim, the UK Cystic Fibrosis Gene Therapy Consortium and Imperial Innovations, through which it has long term economic interests in other potential cell and gene therapy products. 1 Saving lives 2 Questions and answers Additionally the Group has signed a three-year master supply and 8 The Group’s COVID-19 development agreement with AstraZeneca for large-scale manufacturing vaccine journey of the adenoviral based COVID-19 vaccine the (“Oxford AstraZeneca 12 Market overview COVID-19 vaccine”) Oxford Biomedica is based across several locations 15 Strategic Report in Oxfordshire, UK and employs more than 670 people. 16 Group at a glance 18 Product pipeline 20 The Group’s business model 22 The Group’s stakeholders 26 Operational highlights delivered in 2020 27 Financial highlights delivered in 2020 28 Chair’s statement 30 Chief Executive Officer’s and 2020 performance review 38 Management team 40 Delivery of 2020 objectives 41 Objectives set for 2021 42 Financial review 51 Environmental, Social and Governance Report 67 Non-financial statement 69 Corporate Governance 70 Principal risks, uncertainties and risk management 78 Board of Directors 80 Corporate Governance Report 96 Directors’ Remuneration Report 124 Directors’ Report 132 Independent auditors’ report 143 Group financial statements 144 Consolidated statement of comprehensive income 145 Statement of financial positions 146 Statements of cash flows 147 Statements of changes in equity attributable to owners of the parent 148 Notes to the consolidated financial statements 185 Other matters 185 Glossary 188 Advisers and contact details Saving lives 1 ving lives Sa We are Oxford Biomedica. A life saving healthcare company at the leading edge of cell and gene therapy medicine. Oxford Biomedica plc | Annual report and accounts 2020 2 Saving lives Questions and answers Q&A Our new Chair, Dr. Roch Doliveux, responds to the FAQs of the moment. Q: What attracted you to the role of Chair “ I am fascinated by the cell and at Oxford Biomedica? gene therapy space, which is A: I am fascinated by the cell and gene therapy space, which is poised to deliver the next wave poised to deliver the next wave of breakthroughs in medicine. of breakthroughs in medicine.” OXB has a clear leadership position in lentiviral vectors on which to build, with the potential to save and improve the lives of so many more people. Also, OXB enjoys a collegial culture both amongst the management team and the Board. This spirit of winning together is quite special and I particularly thrive in this environment. Q: What impressed you most once you joined? “ When I joined, I knew there A: When I joined, I knew there was great depth in the scientific was great depth in the scientific knowledge around lentiviral vectors at OXB. Having spent knowledge around lentiviral time with our scientists, I am now even more impressed. vectors at OXB. Having spent I am equally impressed by the Chemistry, Manufacturing and time with our scientists, I am Controls (CMC), knowhow and ability to deliver all the way now even more impressed.” through particularly competitive manufacturing: these are impressive combined strengths which differentiates OXB in the marketplace. Oxford Biomedica plc | Annual report and accounts 2020 3 ving lives Sa Q: What surprised you most once you joined? “ OXB has become one of A: The biggest surprise was what OXB has been able to achieve the main manufacturers for and deliver with the Oxford AstraZeneca COVID-19 vaccine the Oxford AstraZeneca in such a short period of time. The team promptly applied its COVID-19 vaccine in the UK expertise to work with a new viral vector, a different process with amazing performance and scaling up to levels we have not worked at before. Using and a sense of urgency.” our knowhow in technology, CMC and manufacturing, OXB has become one of the main manufacturers for the Oxford AstraZeneca COVID-19 vaccine in the UK with amazing Q&A performance and a sense of urgency. Q: How have the first 9 months in the role been? A: Busier than I thought! With the COVID-19 crisis, it has been an unusual time to join an organisation, as I have only met John Dawson, our CEO, in person. However, the culture and “ A major concern for us was collegiality of OXB, combined with frequent interactions, have made it possible to achieve a lot. As I joined, the Group achieved preventing COVID-19 in our a successful fundraise quickly followed by the decision and workplace. Thankfully, our successful implementation of the manufacturing of the manufacturing staff were Oxford AstraZeneca COVID-19 vaccine. A major concern for vaccinated in February with the us was preventing COVID-19 in our workplace. Thankfully, vaccine we are manufacturing our manufacturing staff were vaccinated in February with and the risk and worry that the vaccine we are manufacturing and the risk and worry COVID-19 could disrupt that that COVID-19 could disrupt that important work dissipated. Perhaps more importantly for the long term, the Board important work dissipated.” committed to our strategy to grow our Contract Development and Manufacturing organisation (CDMO) leadership position and build our portfolio of medicines targeting severe diseases. Q: What has your experience as CEO of UCB and in other roles, allowed you to bring to the OXB Board? A: Having been the CEO of an innovative biopharma company as well as mentoring many CEOs, there are certainly many experiences that could be relevant for OXB on the delivery of our services and new medicines. I bring to OXB my whole drive, purpose and my energy. The purpose drives the strategy and focus on implementation drives performance. I believe these involve both organic and inorganic developments and partnerships. I also trust that the connections I have built over the years will help future partnerships and therefore help enable OXB to maximise its full potential. Dr. Roch Doliveux, Chair A biography detailing Dr. Roch’s extensive experience in the sector can be found on page 78. Oxford Biomedica plc | Annual report and accounts 2020 4 Saving lives Questions and answers Q: What drives you? “ I am driven mostly by saving A: I am driven mostly by three things. Firstly saving lives and lives and making the lives of making the lives of those that are suffering better. This is those that are suffering better.” done through hard and smart work. The second dimension that drives me is talent, and maximising the potential of talent and teams. The third area is the need to perform, for example, performance in revenues, market share, profitability, IP, share price and performance in bringing life- saving medicines to patients. Q: How do you see the cell and gene therapy field in the coming years and OXB’s opportunity to capitalise on this? A: Monoclonal antibodies and other large molecules have been an amazing source of innovative medicines and have made many companies successful, including UCB. Cell and gene therapy is clearly the next wave, just like antibodies were 20 years ago; many of the same key success factors will apply, including great technology platforms, the right disease targets, performant CMC and manufacturing, solid development and regulatory skills, customer centric commercialisation, strong IP, access to knowledge, long term capital and great talent. “ Cell and gene therapy is clearly the next wave, just like antibodies were 20 years ago.” Oxford Biomedica plc | Annual report and accounts 2020 5 ving lives Sa Q: You were known for being acquisitive in your “ In such a complex and rapidly time at UCB, do you see growth being mainly organic moving world, we need or inorganic? diversity of thought, talent A: Both; however the most important part is to build on and experiences around strengths and combining strengths which could be through the Board table and within technology partnerships not just via a traditional acquisition the wider Group to help route. I am not driven by acquisitions but by continuously building strengths to maximise the potential of the company, make the right decisions.” whether it was for UCB as CEO, and now for OXB as Chair. Q: Are you committed to OXB being a CDMO as well as developing its own portfolio of medicines? A: Of course. We have a strong CDMO business and will build on this under my leadership. We are also committed to bringing our own new medicines to patients, this may also be done via partnerships as I have discussed above. Q: How important is good corporate governance for a FTSE250 company like OXB? A: Good corporate governance is a must in the same way as “ The cash generated by the good auditing of the accounts and regulatory compliance.