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Cell and gene therapy group Oxford Biomedica said it had ageed to acquire an 80% stake in Homology Medicines' AAV business and incorporate the latter into a new business that would boost its viral vector offerings in the US.
Oxford Biomedica also said it would raise about £80 million through the placing of shares to fund the acquisition.
Homology Medicines' AAV business would be incorporated into a new US-based AAV manufacturing and innovation business called Oxford Biomedica Solutions' AAV Manufacturing and Innovation Business.
Oxford Biomedica Solutions' AAV Manufacturing and Innovation Business would offer a manufacturing platform to customers, including Homology through a multi-year supply agreement as a preferred customer with minimum contracted revenue of approximately US$25 million from Homology for the first twelve months, the company said.
Under the terms of the deal, Homology will bring its established AAV process development and manufacturing platform, strong IP, experienced team and US-based GMP facility to Oxford Biomedica Solutions' AAV Manufacturing and Innovation Business.
Oxford Biomedica US would acquire an 80% stake in newly-formed Oxford Biomedica Solutions for a US$130 million cash payable to Homology and a US$50 million capital injection into Oxford Biomedica Solutions to fund growth.
Homology would retain a 20% ownership interest upon closing of the transaction.