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Oxford BioMedica wins big contract for Novartis cell therapy
July 6, 2017 / 8:06 AM / 5 months ago

Oxford BioMedica wins big contract for Novartis cell therapy

LONDON (Reuters) - Novartis has signed a major contract with Oxford BioMedica that could earn the British company more than $100 million over three years for supplying the Swiss drugmaker with material for its novel cell therapy CTL019.

A sign marks a building on Novartis' campus in Cambridge, Massachusetts, U.S., February 28, 2017. REUTERS/Brian Snyder

The deal, announced by Oxford BioMedica on Thursday, could help put the veteran biotech firm on a path to sustainable profitability.

The contract is for the supply of lentiviral vectors used to generate CTL019, a new kind of treatment for hard-to-treat leukemia that is expected to reach the market this year.

A U.S. advisory panel will discuss the case for approving CTL019 at a meeting on July 12 and Novartis has already designated the treatment as a potential blockbuster.

Oxford BioMedica will received $10 million from Novartis upfront, as well as payments for various performance incentives and bioprocessing and development services.

It will also get a royalty on future sales of CTL-019. Jefferies analysts said this could earn Oxford BioMedica between 65 million and 75 million pounds ($84-97 million) a year, assuming CTL019 peak sales of at least $1 billion.

The agreement also covers the supply of vectors for other undisclosed Chimeric Antigen Receptor T cell (CART) products.

Reporting by Ben Hirschler; Editing by Keith Weir

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