Kymriah approved - royalties to OXB assured

Kymriah (tisagenlecleucel/CTL019), for which Oxford BioMedica (OXB) provides the key lentiviral vector component, has been approved by the FDA for the treatment of patients up to 25 years of age with refractory/relapsed (second or later relapse) B-cell acute lymphoblastic leukaemia (ALL). Novartis has announced that the price for the one-off treatment will be $475k (c £370k), an increase over our previous assumption of £300k. We have updated our model to reflect the higher price, which materially increases the associated royalties we expect OXB to receive. Our updated valuation is £284m (9.2p/share).