Oxford Biomedica stock soars on rosy forecast, talks to buy ABL Europe

(Reuters) - Oxford Biomedica's shares jumped as much as 16% on Wednesday after the British cell and gene therapy company said it would break even earlier than expected and that it was in exclusive talks to buy viral vector manufacturing firm ABL Europe.

The stock was nearly 14% higher at 278 pence by 0908 GMT, on track for its biggest one-day percentage gain since April 2020 and poised to snap an eight-session losing streak.

The gains came after Oxford Biomedica said it now expects operating core profit to broadly break even by the end of 2024, rather than the first half of 2025.

The company added it expects significant revenue growth in 2024 as existing client projects progress and new customers sign on.

Oxford Biomedica also said it had entered exclusive talks with Institut Merieux to acquire the French holding company's viral vector manufacturing firm ABL Europe for 15 million euros (about $16 million).

As part of the deal, Institut Merieux will pour another 20 million euros in future funding into ABL by subscribing to Oxford Biomedica's shares. ($1 = 0.9355 euros)

(Reporting by Khushi Mandowara in Bengaluru; Editing by Savio D'Souza)