Oxford Biomedica, Homology Medicines to create AAV manufacturing JV in US
Oxford Biomedica, a UK-based gene and cell therapy company, has agreed to form a joint venture (JV) to undertake an adeno-associated virus (AAV) manufacturing and innovation business in the US with Homology Medicines.
The joint venture has been named — Oxford Biomedica Solutions.
As per the terms of the agreement, Oxford Biomedica will pay $130 million upfront to Homology Medicines and invest $50 million to fund Oxford Biomedica Solutions in exchange for a stake of 80%.
Homology Medicines, which is a Massachusetts-based genetic medicines company, will hold the remaining stake of 20% in Oxford Biomedica Solutions.
Oxford Biomedica reserves a call option to buy out Homology Medicines’ stake in the AAV manufacturing business at any time after three years of signing the agreement.
Through the agreement, Oxford Biomedica will get a footprint in the US and with contribution from Homology Medicines and future customer pipeline, will offer manufacturing expertise in AAV and lentiviral-based cell and gene therapies to pharma and biotech clients around the world.
Dr. Roch Doliveux — Chair and Interim CEO of Oxford Biomedica said: “Accessing Homology Medicines’ unique AAV capabilities is a major advancement in Oxford Biomedica’s goal to become an innovative global viral vector leader that provides solutions to Cell and Gene Therapy (C>) Biotech and Biopharma companies for their process development and manufacturing needs across key viral vectors.
“Process Development/CMC being one of the most important critical success factors to ensure efficacy, safety and affordability of C>, Oxford Biomedica is in a strong position to enable our customers to bring their new medicines to many more patients and change their lives.”
Oxford Biomedica Solutions will give access to Homology Medicines’ end-to-end manufacturing capabilities. It will have a GMP facility near Boston for AAV manufacturing.
Arthur Tzianabos — President and CEO of Homology Medicines said: “We chose Oxford Biomedica for its leadership in viral-based manufacturing and prestigious global client base, and we believe that Oxford Biomedica Solutions will build upon the strengths of both companies.
“Our leadership in AAV process development and CMC, which resulted from establishing internal capabilities early on, has enabled us to advance three programmes from discovery into the clinic within five years.
“We believe the opportunity in Oxford Biomedica Solutions further leverages the value we created in this broad capability, including the demonstrated expertise of our team, to provide much-needed high-quality viral vector to other companies and, importantly, more patients around the world.”
The deal, which is subject to certain closing conditions, is likely to close in Q1 2022.