LONDON BRIEFING: Oxford Biomedica signs new Covid jab deal with Astra

(Alliance News) - Oxford Biomedica on Friday said that it has signed a new three-year agreement ...

Alliance News 1 July, 2022 | 7:07AM
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(Alliance News) - Oxford Biomedica on Friday said that it has signed a new three-year agreement with AstraZeneca, which would facilitate potential future manufacturing opportunities for the FTSE 100-listed drugmaker's Covid-19 vaccine.

Oxford Biomedica said the manufacture of Covid-19 vaccines at its Oxbox facility is expected to complete in the last quarter of 2022. In accordance with the terms of the original agreement and inclusive of revenue for batches already manufactured in the first half, Oxford Biomedica expects to recognise revenue of GBP30 million from AstraZeneca in the current financial year.

Under the new agreement, manufacturing of vaccines at Oxford Biomedica's manufacturing facility will be available to AstraZeneca on an as-needed basis beyond 2022.

Roch Doliveux, chair & Interim CEO of Oxford Biomedica, commented: "I am delighted that our close partnership with AstraZeneca has been extended. I am proud of the work of all our colleagues at Oxford Biomedica that has enabled us to deliver more than 100 million doses of lifesaving Covid-19 vaccine. While contributing to the efforts to fight the pandemic, this has also demonstrated Oxford Biomedica's ability to expand the scope of our innovative process development services and deliver high-performing manufacturing solutions beyond lentiviral vectors.

"We look forward to continuing to work closely with AstraZeneca and execute on our strategy to become a global leader across all viral vectors, enabling Cell and Gene Therapy companies to deliver their life-changing therapies to patients."

Shares were up 2.1% at 463.50 pence in London early Friday.

Here is what you need to know at the London market open:

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MARKETS

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FTSE 100: down 0.8% at 7,113.86

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Nikkei 225: closed down 1.7% at 25,935.62

S&P/ASX 200: closed down 0.4% at 6,539.90

Financial markets in Hong Kong closed for holiday.

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DJIA: closed down 253.88 points, or 0.8%, at 30,775.43

S&P 500: closed down 0.9% at 3,785.38

Nasdaq Composite: closed down 1.3% at 11,028.74

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EUR: firm at USD1.0461 (USD1.0456)

GBP: down at USD1.2119 (USD1.2157)

USD: down at JPY134.90 (JPY135.89)

GOLD: down at USD1,797.51 per ounce (USD1,807.91)

OIL (Brent): down at USD108.64 a barrel (USD114.74)

(changes since previous London equities close)

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ECONOMICS AND GENERAL

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Friday's key economic events still to come

Czech Republic takes over EU presidency.

0955 CEST Germany manufacturing purchasing managers' index

1000 CEST EU manufacturing PMI

1100 CEST EU consumer price index

0930 BST UK S&P Global-CIPS manufacturing PMI

0945 EDT US manufacturing PMI

1000 EDT US ISM manufacturing PMI

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China's manufacturing sector returned to expansion levels in June, with the easing of Covid restrictions leading to a sharp expansion of output, and the stabilisation of supply chains, data from Caixin and S&P Global showed. The Caixin general manufacturing purchasing managers' index rose to 51.7 points in June from 48.1 points in May, signalling the first improvement in the sector in four months, as well as the strongest rate of increase since May 2021. Companies noted the first expansion of output since February, as a result of the return to more normal operations, as well as the reopening of production lines and Covid restrictions were relaxed. Also returning to growth were new orders, albeit at a more modest rate due to subdued demand conditions and the lingering effect of the pandemic.

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President Xi Jinping hailed China's rule over Hong Kong on Friday as he led 25th anniversary celebrations of the city's handover from Britain, insisting that democracy was flourishing despite a years-long political crackdown that has silenced dissent. At a tightly choreographed ceremony, which included the inauguration of Hong Kong's new government, Xi showcased the Chinese Communist Party's hold after unleashing a sweeping crackdown against the city's democracy supporters. Since Beijing imposed a national security law on Hong Kong in 2020, opposition has been quashed and most leading democracy figures have fled the country, been disqualified from office or jailed. But during his speech, Xi said Beijing had always acted "for the good of Hong Kong". "After reuniting with the motherland, Hong Kong's people became the masters of their own city," he said. "Hong Kong's true democracy started from here." The trip is Xi's first out of mainland China since the beginning of the Covid-19 pandemic and his first to Hong Kong since massive protests overwhelmed the city in 2019.

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BROKER RATING CHANGES

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Barclays cuts Lancashire to 'equal weight' (overweight) - target 482 (782) pence

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Citigroup cuts abrdn to 'sell' (neutral) - price target 150 (205) pence

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COMPANIES - FTSE 100

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Staff at telecoms giant BT Group have voted to strike, union bosses announced Thursday, joining workers in various UK sectors protesting over pay as decades-high inflation erodes wages. Dave Ward, general secretary at the Communication Workers Union, said BT now faces its first national strike since the company's privatisation in the 1980s after a ballot in favour of walking out. It comes after strike action in recent days by tens of thousands of rail workers in addition to stoppages held by senior criminal lawyers. Elsewhere, the aviation and postal sectors face stoppages, while teachers and workers in the state-run National Health Service mull action. Union leaders insist strikes are necessary as wages have failed to keep pace with UK inflation, which has soared to a 40-year high and is on course to rise beyond 10%. "People will not work harder and harder for less and less forever," Ward said in a statement announcing plans for BT workers to strike.

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COMPANIES - FTSE 250

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Chemring said that the UK Serious Fraud Office has closed its investigation into the firm. Back in January 2018, the SFO launched a formal investigation into concerns about bribery, corruption and money laundering involving subsidiary Chemring Technology Solutions. The investigation followed a voluntary report made by the subsidiary which related to two specific historic contracts. The Romsey, Hampshire-based defence technology manufacturer said that it has co-operated fully with the SFO throughout the investigation and is "pleased" that the matter is now closed. "Chemring remains committed to conducting its business in an ethical and responsible manner at all times, and in full compliance with all applicable laws and regulations," the company said.

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COMPANIES - SMALL CAP

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CVS Group said it has acquired Old Courts Veterinary Centre for GBP3.0 million and that it has "significant headroom" for further organic investments and acquisitions. CVS also said current trading remains in line with management expectations for the full financial year.

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MJ Gleeson confirmed that it has achieved its medium-term strategic target of doubling home sales by completing the sale of 2,000 homes during the financial year ended June 30.

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S4 Capital said its Media.Monks business has entered an agreement with Los Angeles, California-based social marketing services agency XX Artists, to expand its capabilities and client base in the core US market. XX Artists helps clients such as Google, YouTube, Logitech, and Ancestry.com formulate and execute their social and influencer content strategies. XX Artists was founded in 2018 by Kyle Kuhns. Martin Sorrell, S4 Capital chair, said: "We are delighted to welcome Kyle and his colleagues to the family. Their exciting growth, diverse talent base and prestigious clients will help fuel the development of our best-in-class social media capabilities in the United States and internationally."

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COMPANIES - GLOBAL

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Facebook parent Meta Platforms is preparing for "fierce" headwinds, according to an internal memo seen by Reuters on Thursday. "I have to underscore that we are in serious times here and the headwinds are fierce. We need to execute flawlessly in an environment of slower growth, where teams should not expect vast influxes of new engineers and budgets," Chief Product Officer Chris Cox wrote in the memo. The company must "operate leaner, meaner, better executing teams," he wrote.

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German multinational conglomerate Siemens announced on Thursday that a special write-off will result in a EUR2.8 billion hit to third-quarter earnings after taxes. The write-off is as a result of the fall in the share price of Siemens Energy, in which Siemens holds a 35% stake. In view of the closing price of the share on Thursday evening, the market value of the participation was "significantly below the book value," the company said in justification. Since the turn of the year, Siemens Energy's shares have lost almost 38% in value.

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Friday's shareholder meetings

All Star Minerals PLC - GM re name change to Marula Mining

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By Lucy Heming; lucyheming@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Oxford BioMedica PLC 492.00 GBX 0.61 -

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