Oxford Biomedica Covid-19 vaccine gets cash injection to boost production | Business

Oxford Biomedica’s role as lead manufacturer of a potential Covid-19 vaccine being developed by Astrazeneca has been expanded with an agreement to increase production. The gene and cell therapy group has signed an 18-month supply agreement to produce Astrazeneca’s AZD1222 vaccine on a commercial scale.

Under the agreement, which can be extended for a further 18 months into 2022 and 2023, Astrazeneca will pay Oxford Biomedica an initial £15 million as a capacity reservation fee. Oxford Biomedica said that, subject to the stepping up of manufacturing capacity and the continuation of the vaccine programme, it expected to received further revenue of more than £35 million, plus “certain materials costs”, for the manufacture of multiple large-scale batches of AZD1222 until the end of 2021.

AZD1222, which