Shares in Oxford Biomedica rocketed in early trading on Thursday after the gene and cell therapy group confirmed it had entered takeover discussions with Swedish private equity firm EQT.
Takeover Talks Trigger Share Price Surge
The FTSE 250-listed company saw its share price leap by 10.65 per cent to 889 pence following the announcement. This latest jump adds to an impressive run, with the stock having skyrocketed by 121.4 per cent over the past twelve months.
Oxford Biomedica stated it had received an unsolicited approach from EQT and was engaged in preliminary discussions regarding a possible cash offer. Under UK takeover rules, EQT has until 11 February 2026 to either make a firm bid or walk away.
The company, which is headquartered in Oxford and boasts a market capitalisation of over £900 million, revealed this was not the first proposal from EQT. Previous unsolicited offers had been rejected by the board for undervaluing the business.
Private Equity Targets European Public Companies
EQT's move forms part of a wider trend of global buyout firms targeting listed companies across Europe. Investors are seeking to capitalise on relatively cheap stock prices by taking public companies private.
Recent major deals in this vein include:
- KKR's £4.7bn acquisition of UK scientific instruments maker Spectris.
- Permira's £2.7bn deal for fund administrator JTC.
EQT, which manages a colossal €267 billion (£231bn) in assets, last completed a significant European takeover in 2024. It led a consortium that bought Irish video games firm Keywords Studios for £2.2 billion. The private equity group also owns a portfolio of healthcare assets, having acquired Dechra Pharmaceuticals for £4.5bn and owning Europe's largest veterinary company, IVC Evidensia.
Oxford Biomedica's Remarkable Recovery
The current bid interest marks a significant turnaround for Oxford Biomedica. During the Covid-19 pandemic, the company's profile and finances were boosted by a partnership with AstraZeneca to manufacture the Oxford University vaccine.
However, the subsequent biotech sector slump, combined with internal leadership and strategy changes, led to a share price decline and reduced forecasts. The company has staged a strong recovery recently, aided by a £60 million fundraising round, its promotion back to the FTSE 250 index, and a strategic acquisition in the United States.
All eyes are now on EQT's next move as the February deadline approaches, with the market keen to see if a formal offer materialises for this leading British gene therapy group.
