eyes on the future
annual report and accounts 2011    
strategy and review
01  valuable medicines and treatments
02 product pipeline
04 chairman’s message
05  management t eam
06  progress at a glance
08  chief executive’s review
09 looking ahead 
 10 moving forward backed by experts 
 12 seeing things through
 14 recognising value in opportunity 
1 7  o per ational highlights
18  operational review 
  lentivector
®
 platform
  prosavin
®
 21 ocular portfolio
 23 glaucomagt
 24 monudin
®
 25 lentivector
®
 platform manufacturing
 26 5t4 tumour antigen platform
  trovax
® 
 28 targeted antibody therapy for cancer
 29 diagnostic cancer imaging
   ot her pr oducts
  board changes
30 oxford biomedica’s ocular collaborations
32 financial highlights
33 financial review
governance and financial statements
40 the board of directors 
42 principal risks and uncertainties
44 corporate governance
47 corporate social responsibility
49 directors’ report
53 directors’ remuneration report
59  independent auditors’ report 
60  consolidated statement of  
comprehensive income
61 balance sheets
62 statements of cash flows
63  statements of changes in equity  
attributable to owners of the parent
64  notes to the consolidated financial statements
90  technology and product glossary
92 advisers
oxford biomedica in brief 
oxford biomedica is one of the leading companies in gene therapy 
and immunotherapy with a platform of exclusive and pioneering 
technologies to design and develop unique genebased medicines  
our pipeline addresses diseases for which there is currently  
no treatment or that are inadequately treated today including 
cancer neurodegenerative and ocular diseases and our product 
candidates have the potential to transform treatment landscapes 
through our inhouse development programmes and our 
collaborations with leading industry partners our goal is to improve 
the lives of patients with debilitating and lifethreatening diseases
our core technology platforms are
lentivector
®
 platform
our proprietary gene delivery system called the lentivector
®
 
platform technology was invented through pioneering work 
initially at oxford university and then through inhouse 
development the lentivector
®
 platform is based on lentiviral
derived vectors which can deliver a significant amount of genetic 
information into cells safely and very efficiently the lentivector
®
 
platform technology utilises “strippeddown” versions of 
lentiviruses technology highlights include
—  longlasting delivery of genetic material into target cells
—  no toxicity or adverse immune reaction
—   integration of genes into nondividing cells  
eg neurons in the brain retinal cells in the eye
—   large capacity for multiple therapeutic genes  
eg three genes in prosavin
®

oxford biomedica’s preclinical and clinical studies suggest that  
a single administration of its lentivector
®
 platform products can 
provide longterm sustained or permanent gene expression
5t4 tumour antigen platform
the 5t4 antigen was discovered by scientists at cancer research 
uk a founding shareholder of oxford biomedica in 1996 who 
granted us exclusive rights to its intellectual property relating to 
the 5t4 antigen and antibody the 5t4 tumour antigen is a unique 
protein found on most common types of solid cancer including 
prostate colorectal ovarian breast renal and nonsmall cell lung 
cancer it is potentially a valuable target for novel anticancer 
interventions given
—   restricted expression in normal tissues
—   high prevalence on the surface of both primary  
 and metastatic cancerous cells 
the market opportunity for the 5t4 platform technology  
is therefore significant
our mission
…is to build a toptier profitable biopharmaceutical company 
founded on the successful development and commercialisation  
of novel genebased medicines oxford biomedica plc  annual report and accounts 2011 01
the novel treatments and medicines 
we are developing target high unmet 
needs addressing chronic and inherited 
diseases they have the potential to 
transform treatment prospects thus 
improving the quality and duration  
of life for patients with debilitating  
and lifethreatening diseases
reducing the social care burden
with the potential of a single administration  
providing longterm therapeutic benefit our  
lentivector
®
 platform products could significantly  
reduce the social care burden associated with  
neurodegenerative or ocular diseases
we are wellpositioned to maximise  
the potential of our proprietary 
technologies through inhouse 
development collaborations and 
licensing in doing so we aim to retain 
longterm value from the successful 
development and commercialisation  
of our innovative product candidates
big pharma’ needs robust pipelines
the fundamentals of the pharmaceutical industry  
model are undergoing significant change which  
we believe represents an opportunity for innovators  
such as oxford biomedica
‘   oxford biomedica plc  annual report and accounts 2011 02
1 genedirected enzyme prodrug therapy 
 announced in april 2012
product pipeline
our progress to date
gdept
1
5t4 tumour antigen
the 5t4 tumour antigen is  
a unique protein found on most 
common types of solid cancer  
which makes it a potentially  
valuable target for novel  
anticancer interventions
primeboost 
anti angiogenesis
platform product partnerfunding
lentivector
®
lentivector
®
 technology is one  
of the most advanced gene delivery 
systems currently available it has 
specific advantages in certain 
neurological and ocular disorders 
and could achieve permanent 
therapeutic benefit 
prosavin
®
genebased treatment for parkinson’s disease which converts cells  
and replaces patient’s lost source of dopamine 
retinostat
®
 sanofi
genebased treatment for neovascular “wet” agerelated macular 
degeneration amd which aims to preserve and improve the vision  
of patients
stargen
™ 
sanofi
genebased treatment for stargardt disease which delivers a corrected 
version of the abcr gene to address vision loss 
ushstat
®
 sanofi
genebased treatment for the treatment of usher syndrome type 1b  
the disease leads to progressive retinitis pigmentosa combined with  
a congenital hearing defect
glaucomagt mayo clinic usa
genebased treatment for chronic glaucoma which aims to  
provide longterm control of intraocular pressure to minimise  
the risk of vision loss
monudin
®
 uk motor neurone disease association
genebased treatment for the progressive usually fatal motor neuron  
disease used to prevent further degeneration of the motor neurons  
and potentially restore motor function
trovax
®
a therapeutic vaccine that stimulates the immune system to destroy 
cancerous cells expressing the 5t4 tumour antigen which is present  
on most solid tumours
hi8
®
 mel
metxia
®
endoangiogt
encorstat
®
 sanofi
genebased treatment for the prevention of corneal graft rejection  
corneal grafting arises from a need to remove and replace pathology  
arising in the cornea causing ‘clouding’
anti5t4 antibody pfizer
anticancer agent calicheamicin binds to the 5t4 antigen on the surface of 
cancerous cells the complex is then internalised by the tumour cell and the 
calicheamicin is released from the antibody killing the cancerous cell oxford biomedica plc  annual report and accounts 2011 03
stage of development indication
 
pancreatic cancer
cancer
parkinson’s disease
“wet” agerelated macular degeneration
stargardt disease
usher syndrome type 1b
corneal graft rejection
chronic glaucoma
motor neuron disease
prostate cancer
cancer
melanoma
phase ii trial ongoing
preclinical
phase iii trial completed

phase i trial ongoing
phase iiia trial ongoing
phase iiia trial ongoing
phase iii trial preparation
preclinical
research
phase iia trial completed
phase iii trials completed
research oxford biomedica plc   annual report and accounts 2011 04
chairman’s message
 
tough economic environment
the complexity of today’s global economic environment has affected all 
industries not just the pharmaceutical and biotechnology sector cautious 
investors are steering clear of equity markets and nonprofitable “binaryrisk” 
biotechnology companies no longer dominate the uk healthcare  life 
sciences sector however the fundamentals of the pharmaceutical industry 
model are undergoing significant change which we believe represents  
an opportunity for innovators such as oxford biomedica 
successful pharmabiotech alliances are essential
the pharmaceutical companies best equipped to deal with the challenges 
ahead are those with robust pipelines capable of offsetting the impact from 
expiring patents and cuts in rd consolidation and alliances will continue  
to transform the market as companies adapt to changing conditions within 
the industry oxford biomedica has innovative technology platforms a diverse 
product portfolio and worldclass industry collaborations with partners such 
as sanofi and pfizer with one of the broadest patent estates in our chosen 
fields we are wellpositioned to leverage the value of our products and 
intellectual property through strategic partnerships
strong management team
under the leadership of john dawson chief executive officer oxford 
biomedica has evolved from being a researchdriven organisation into  
a more commerciallyfocused company the management team has the 
breadth and depth of expertise necessary to manage the company in today’s 
environment including rd clinical development regulatory intellectual 
property management manufacturing business development due diligence 
and finance with development risk now spread across the broadest  
clinical portfolio to date the management team has strategically focused  
on key therapeutic areas of interest such as neuroscience ocular disease  
and oncology
board changes
in may 2011 dr alan kingsman left the board of oxford biomedica and  
i stepped up from deputy chairman to become chairman i would like  
to express my sincere thanks to alan for his invaluable contribution to the 
company dr alex lewis was also appointed director of corporate activities 
and strategy in may 2011 and as a result stepped down from the board 
andrew wood stepped down as chief financial officer in february 2012 
having made a substantial contribution to the company since its ipo  
in 1996 we wish andrew all the best for the future and welcome tim watts 
who has been appointed to the board as chief financial officer and  
company secretary
strategy commitment
oxford biomedica has clear strategic priorities ahead to secure corporate  
and commercial success the company’s growth and success will not  
only come from commercial partnerships but also future corporate activity  
the board is continuously monitoring expenditure and having recently 
reduced the company’s cost base oxford biomedica has tight fiscal controls 
in place as with all biotechnology companies we continue to review our 
options in terms of how best to finance the company to allow us to achieve 
our strategic aims
in conclusion
the operational achievements in 2011 are a result of the sheer hard  
work and dedication of our staff so i would like to thank everyone for their 
commitment over the past year i would also like to thank our partners and 
shareholders for their longterm support particularly given the volatile nature 
of the global biotechnology sector we have challenges ahead however  
with increasingly valuable assets i remain confident that the management 
team will continue to make progress towards a strong future
nick rodgers
chairman
operationally 2011 was a successful 
year for oxford biomedica resulting 
in substantial growth across the 
company’s clinical portfolio the 
strategic investment in proprietary 
manufacturing multiple regulatory 
approvals and new industry 
collaborations however we are 
acutely aware that securing a 
commercial partner for prosavin
®
 
has taken longer than anticipated 
we have clear strategic priorities 
ahead and with multiple initiatives 
ongoing remain committed  
to securing a strong future for  
the company
nick rodgers
chairman oxford biomedica plc   annual report and accounts 2011 05
01 john dawson
chief executive officer
john dawson joined oxford 
biomedica’s board as a nonexecutive 
director in august 2008 and was 
appointed chief executive officer on 
13 october 2008 from 1996 to 2007 
mr dawson held senior management 
positions in the european operations 
of cephalon inc where he led many 
of the deals that built the european 
business to over 1000 people taking 
the business from having no sales in 
1998 to revenue of several hundred 
million us dollars 
team expertise
—   leadership and strategy
—   business development
02 tim watts
chief financial officer
tim watts was appointed to the 
board as chief financial officer  
and company secretary in february 
2012 he is a chartered accountant 
with over 30 years’ experience in 
leading multinational and entrep
reneurial businesses prior to joining 
oxford biomedica mr watts held 
senior finance positions at ici 
astrazeneca and archimedes pharma 
mr watts has a proven track record 
in the industry including managing 
corporate transactions ma  
activity fundraising and strategic 
implementation 
team expertise
—   financial management
—   strategic implementation
   0 3 d r stuart n a ylor
chief scientific officer
dr stuart naylor joined oxford 
biomedica in 1997 and was 
appointed to the board in july 2008 
he established an international 
reputation at two world class cancer 
institutes the imperial cancer 
research fund and the institute  
of cancer research dr naylor’s 
career has covered many aspects  
of tumour biology from its 
molecular basis to the clinic 
team expertise
—   technical and regulatory acumen
—   alliance management
    04  p et er n o lan
executive director and senior vice 
president commercial development
peter nolan was appointed to 
oxford biomedica’s board in may 
2002 having been a senior member 
of the company since its foundation 
he is also a director of the uk 
bioindustry association and is  
a past chairman of the oxfordshire 
bioscience network prior to joining 
oxford biomedica mr nolan served 
as head of the biotechnology unit  
at the uk department of trade  
 industry for eight years
team expertise
—   inoutlicensing collaborations  
 and legal issues
—   intellectual property strategy  
and management
03 04 02 01
management t eam
the management team  
at the oxford science park oxford biomedica plc  annual report and accounts 2011 06
 
pursuing partners to help take  
programmes forward
with one of the broadest patent estates in our chosen 
fields we are wellpositioned to leverage the value of 
our products and intellectual property through strategic 
partnerships we are actively pursuing multiple partnering 
initiatives with a primary focus on prosavin
®
 and 
trovax
®
 for trovax
®
 in particular we are also exploring 
collaborations through clinical networks which provide 
significant leverage for our investment with patience  
and tenacity we believe that we can secure strong deals 
with the right partners for our innovative products
as a biopharmaceutical company we continuously  
aim to enhance our assets to reinforce patent life 
optimise cost of goods and increase the commercial 
opportunity at all levels of development during 2011  
we improved elements for prosavin
®
 and trovax
®
 such 
as clinical analyses regulatory pathways future trial 
design and manufacturing we are actively pursuing 
multiple initiatives to secure further funding for our  
core programmes and continue to evaluate development 
strategies in light of our financial resources
key achievements 2011
—     n ew l entiv ect or
®
 platform collaboration  
with mayo clinic usa for chronic glaucoma
—    broadened partnership with pfizer to include  
in vitro diagnostic use of 5t4 antibodies
—     collaboration with imaginab to engineer a 
5t4based in vivo diagnostic imaging agent
focus 2012
—    continue to seek to leverage the value  
of our intellectual property through strategic 
partnerships
—    actively pursuing multiple initiatives to secure 
further funding for our core programmes
manage risks and resources
realising the value of pioneering innovation within  
the field of biotechnology comes with inherent  
risk our strategy is to mitigate both technical and  
financial risk through partnerships that bring the  
clinical regulatory and commercialisation capabilities 
required to maximise the market potential of our novel 
treatments we take careful consideration in allocating 
resources and remain focused on developing our core 
products which we believe have the highest potential  
in the nearterm
until we reach sustainable profitability we continue  
to strike a balance between growing the company 
whilst also being careful with costs during 2011  
we reviewed the company’s business operations to 
implement a stronger emphasis on clinical development 
and commercialisation our aim is to ensure that  
oxford biomedica is an efficient focused and resilient 
organisation with multiple opportunities ahead we 
remain confident in our ability to bring in future revenue 
and continue to run the business in order to deliver  
on our strategy
key achievements 2011
—   £20 million fundraising completed  
 on 10 january 2011
—   2011 review of business operations  
 to implement stronger emphasis on clinical  
 development and commercialisation
—    reduction in cost base
focus 2012
—   continue to strike a balance between  
 growing the company whilst also being  
 careful with costs
—    ongoing review of how best to finance  
 the company to allow us to achieve our  
 strategic aims
progress at a glance
our strategy for success
strategic objectives oxford biomedica plc  annual report and accounts 2011 07
ensuring timely delivery  
of pipeline
there is a sense of urgency in what we do and timely 
delivery is a core component of oxford biomedica’s 
strategy as one of the leading companies in the field  
of gene therapy and immunotherapy we work 
closely with regulatory agencies to define appropriate 
development pathways as with other biotechnology 
companies in the sector forecasting product 
development timelines is particularly challenging 
especially with our product candidates which are based 
on groundbreaking science and have the potential  
to offer new treatment paradigms we endeavour  
to provide guidance on timelines based on our best 
assumptions and are committed to ensuring timely 
delivery of our goals and milestones
key achievements 2011
—    three new ocular phase iii clinical  
trials underway
—     furt her positi v e pr osa vin
®
 data announced 
throughout 2011
—    commissioning process of new  
manufacturing facility complete and  
on budget
focus 2012
—     ongoing focus on delivering portfolio  
and operational progress
seizing opportunity
oxford biomedica has evolved from being a research
driven organisation into a more commerciallyfocused 
company the management team has the breadth  
and depth of expertise necessary to manage the  
company in today’s environment and enables us to  
respond quickly to market conditions and opportunities 
in february 2011 we acquired a uk manufacturing  
facility for £19 million which represents a fraction of  
the cost of a new build this investment in our specialist 
manufacturing processes will address one of the  
main hurdles associated with the rapid progression  
of products through phase ii phase iii and to market 
and importantly also provides the opportunity for  
us to become the lentivector
®
 platform supplier  
of choice for current and future partners
in addition to organic growth we remain alert to 
external opportunities for strategic and wellconceived 
corporate activity as a means to accelerate profitability
key achievements 2011
—   acquisition of uk manufacturing facility  
in february 2011
focus 2012
—    our growth and success will not only  
come from commercial partnerships but  
also future corporate activity oxford biomedica plc   annual report and accounts 2011 08
portfolio progress
the initiation and development of three pioneering phase iii ocular  
gene therapy studies is not only a historic milestone for oxford biomedica  
but is also of great significance to the field of ophthalmology – particularly  
in orphan indications such as stargardt disease and usher syndrome 
prosavin
®
 continues to generate positive data in the current phase iii study  
in parkinson’s disease and further product optimisation provides significant 
potential to increase benefit for patients and reduce the development risk 
thus enhancing the commercial opportunity whilst recruitment for our 
trovax
®
 phase ii study in prostate cancer is challenging given the new 
treatment landscape in the us the support and enthusiasm from the oncology 
community is encouraging and we are pleased to be working with multiple 
academic groups on the future development of this important asset 
alongside our core programmes the new collaborations with mayo clinic 
imaginab and our strengthened alliance with pfizer further validate our 
innovative technology platforms
proprietary manufacturing
the new manufacturing facility is expected to deliver longterm operational 
and financial efficiencies and will support our products through phase ii 
phase iii and to market it also provides the opportunity for us to become the 
lentivector
®
 platform supplier of choice for our current and future partners 
which could provide additional revenues the successful commissioning of 
the manufacturing facility is a significant achievement for oxford biomedica 
and the hard work continues in preparation to secure our mhra license  
to support clinical manufacturing and supply
partnering initiative
building the value of novel products takes time as a biopharmaceutical 
company we continuously aim to enhance our assets to reinforce patent 
protection optimise cost of goods and increase the commercial opportunity 
at all levels of development whilst we cannot influence data during 2011  
we improved elements within our control for prosavin
®
 and trovax
®
 such as 
clinical analyses regulatory pathways future trial design and manufacturing 
we are actively pursuing multiple initiatives to secure further funding for  
our core programmes and continue to evaluate development strategies  
in light of our financial resources
financial management
our cash position at 31 december 2011 was £143 million and we have 
sufficient financial resources to fund the business until q1 2013 this does  
not take into account potential milestone payments should sanofi elect 
to exercise its options for the ocular products during 2012 nor does it  
factor in potential revenue from partnering deals however until we reach 
sustainable profitability we continue to strike a balance between growing  
the company whilst also being careful with costs during 2011 we reviewed 
the company’s business operations to implement a stronger emphasis  
on clinical development and commercialisation our aim is to ensure that 
oxford biomedica is an efficient focused and resilient organisation as a result 
management has reduced the company’s cost base implemented a reduction 
in headcount of 16 staff and closed the us office in san diego california 
outlook
as i have said before i believe oxford biomedica has strong fundamentals  
an exciting development pipeline and a commerciallyfocused management 
team whilst securing further funding for prosavin
®
 has taken longer than 
expected our achievements during 2011 demonstrate our ability to deliver 
operational progress with multiple opportunities ahead we remain confident 
in our ability to bring in future revenue and continue to run the business  
in order to deliver on our strategy
john dawson
chief executive officer 
chief executive’s  
review
following the £20 million 
fundraising at the start of 2011  
we set ourselves multiple rd and 
commercial milestones for the year 
with three ind approvals from  
the us regulatory agencies within 
12 months our ocular portfolio  
is progressing extremely well and 
we have successfully commissioned 
our new manufacturing facility 
whilst prosavin
®
 has produced  
the most encouraging results to 
date we are taking an appropriately 
prudent approach towards the  
next key stage of development 
with further product optimisation 
we will ensure the greatest chance 
of success in randomised studies 
with careful consideration  
towards our financial resources  
we continue to evaluate the most 
effective strategies to further 
advance our products towards 
commercialisation
john dawson
chief executive officer looking ahead
we aim to change things 
to find new ways and 
weapons with which we 
can fight back debilitating 
and lifethreatening 
diseases it’s no small 
challenge
our hard work 
determination and 
commitment drive us as 
we take each gradual step 
as we progress towards 
our goals
oxford biomedica plc   annual report and accounts 2011 09
looking ahead
our vision has always been clear  
to find new ways and weapons with 
which we can fight debilitating and  
lifethreatening diseases it’s no small 
challenge
our hard work determination and 
commitment drives each gradual step 
as we progress towards our goals prosavin
®
 is one of the more 
advanced of the prospective gene 
therapy products in development 
for parkinson’s and is unique  
in its aim to achieve dopamine 
replacement the results which 
prosavin
®
 has generated to date 
demonstrate its potential to make  
a huge difference to those of us 
living with this terrible condition 
for 40 years people with 
parkinson’s have struggled with  
the complexities and sideeffects  
of oral ldopa what we have  
seen with prosavin
®
 indicates that 
at last there might be an effective 
and enduring alternative means  
of reasserting control over  
the movement of your own  
body people with parkinson’s  
everywhere should take heart
tom isaacs
president and cofounder of the cure parkinson’s 
trust and a person with parkinson’s disease
oxford biomedica plc   annual report and accounts 2011 10 oxford biomedica plc   annual report and accounts 2011 11
moving forward  
backed by experts 
we are privileged to be working alongside key 
opinion leaders clinicians academic institutions 
charitable organisations and industry specialists 
within our chosen fields of development
examples
parkinson’s disease
results from the ongoing prosavin
®
 
phase iii study are regularly reviewed 
by an independent data monitoring 
committee dmc a multidisciplinary 
panel with expertise in parkinson’s 
disease and virology in december 
2011 oxford biomedica reported that 
in addition to prosavin
®
’s longterm 
safety profile the dmc confirmed 
that the highest 5x dose shows most 
promising signs of efficacy to date
we are pleased that prosavin
®
  
and the enhanced administration 
technique continue to demonstrate  
a longterm safety profile the 
signals of improvements in motor 
function with decreased oral 
dopaminergic therapy observed to 
date are encouraging particularly  
at the 5x dose functional imaging 
data also suggest possible dopamine 
provision attributable to prosavin
®
 
at this dose we would support 
investigation of a further dose 
escalation for this novel product  
as part of a phase ii development 
programme
professor olivier rascol
chair of the independent dmc
ocular diseases
our ocular programmes are monitored 
by an independent data safety 
monitoring board dsmb comprising 
a panel of specialists in the fields of 
ophthalmology virology and vectoro
logy in january 2012 oxford biomedica 
received a positive interim review of 
the ongoing retinostat
®
 and stargen
™
 
ocular programmes by the dsmb
we work closely with the clinicians 
and principal investigators who lead 
our ocular clinical trials at
—    the wilmer eye institute at johns 
hopkins baltimore usa
—    the oregon health  science 
university’s casey eye institute 
portland oregon
—    the centre hospitalier national 
d’opthalmologie des quinze
vingts paris
we have a strong relationship with the 
foundation fighting blindness a us 
nonprofit organisation that provided 
early funding for our preclinical ocular 
programme please see pages 3031 
for a detailed summary of this alliance
in addition we are delighted to 
be collaborating with mayo clinic 
rochester usa to develop a novel 
gene therapy for the treatment of 
chronic glaucoma
cancer
we continue to receive interest from 
oncologists and clinicians regarding 
the future development of trovax
®
 
our cancer vaccine in several cancer 
indications which have a clear unmet 
medical need and a lack of effective 
treatments we are currently working 
with a number of uk collaborators 
and expect multiple sponsored phase 
ii studies to be initiated in 2012 by
—    cardiff university targeting 
colorectal cancer
—    cardiff university and velindre 
cancer centre targeting 
mesothelioma
—   uk national cancer research 
network targeting ovarian cancer oxford biomedica plc   annual report and accounts 2011 12
being part of the collective  
team involved in the preclinical 
development and eventual 
initiation of three phase iii ocular 
gene therapy studies has been  
a fantastic experience these  
are the first us studies to directly 
administer lentiviralderived vector 
treatments to patients – it is great  
to be at the forefront of such 
pioneering clinical development
margaret esapa
senior research scientist and coordinator oxford biomedica plc   annual report and accounts 2011 13
seeing things  
through
our regulatory success to date  
demonstrates our ability to bring  
pioneering therapies to patients
with no gene therapy product 
approved in the eu or us we work 
very closely with the regulatory 
agencies in order to define the 
development pathways for our 
novel gene therapies
our regulatory expertise
in december 2007 we received 
regulatory approval from the french 
regulatory agency afssaps to 
start the first clinical trial using the 
lentivector
®
 platform the prosavin
®
 
phase iii trial in parkinson’s disease 
since then we have received 
regulatory approval from the us  
food and drug administration fda 
for three innovative ocular gene 
therapy clinical trials
ocular case study
in november 2010 the fda approved 
oxford biomedica’s investigational 
new drug ind application for 
retinostat
®
 resulting in the initiation 
of the first us clinical study using  
the company’s lentivector
®
 platform 
technology in january 2011  
this was a major event for oxford 
biomedica and would also support 
subsequent lentivector
®
 platform 
regulatory submissions accordingly 
the fda approved the stargen
™
  
and ushstat
®
 ind applications in 
march and october 2011 respectively 
receiving three ind approvals from 
the us regulatory agencies within  
12 months represents an exceptional 
achievement for the company’s  
rd and regulatory teams and 
demonstrates our ability to bring 
novel products into clinical 
development
regulatory success
product indication agency date of approval clinical trial sites 
 
prosavin
®
 parkinson’s disease afssaps dec07 cta france
  mhra oct10 uk site uk
retinostat
®
 “wet” agerelated macular degeneration fda nov10 ind us
stargen
™
 stargardt disease fda mar11 ind us
  afssaps jul11 cta france
ushstat
®
 usher syndrome type 1b fda oct11 ind us
  glossary
—  afssaps agence française de sécurité 
sanitaire des produits de santé
—  cta clinical trial application 
—  fda us food and drug administration
—  ind investigational new drug 
—  mhra uk medicines and healthcare 
products regulatory agency gene therapy is a specialised  
area of drug development  
and the lentivector
®
 platform 
technology is based on a proprietary 
manufacturing process developed 
from scratch by oxford biomedica 
with a new manufacturing team  
in place we can combine inhouse 
expertise with significant operational 
and technical knowledge garnered 
from our colleagues’ previous 
experiences within the big pharma 
and biopharmaceutical industries 
this integrated team has been 
instrumental in the commissioning 
process of the manufacturing  
facility throughout 2011 and 
continues to support the ongoing 
core lentivector
®
 platform 
development programmes
satpal griffiths
quality control manager senior microbiologist
oxford biomedica plc   annual report and accounts 2011 14 oxford biomedica plc   annual report and accounts 2011 15
recognising value  
in opportunity
we have the breadth and depth of knowledge 
necessary to manage the company in today’s 
environment which enables us to respond 
quickly to market conditions and opportunities
case study
successful acquisition of  
uk manufacturing facility  
in cowley oxford
in february 2011 we acquired a uk 
manufacturing facility for £19 million 
which represents a fraction of the 
cost of a new build the facility 
totals approximately 16000 square 
feet which includes c 4400 square 
feet in cleanrooms and is situated 
less than three miles from our head 
office an integrated team comprising 
manufacturing development quality 
control quality assurance engineering 
and logistics expertise have been 
engaged in commissioning the  
facility throughout 2011
oxford biomedica’s inhouse  
expertise includes 
—  rd
—  clinical development
—  regulatory
—  intellectual property management
—  manufacturing
—  business development
—  due diligence
—  finance 
the acquisition of a manufacturing 
facility will ensure the rapid 
progression of the company’s core 
lentivector
®
 platform products 
through development and 
to market oxford biomedica plc   annual report and accounts 2011 16
we work in some of the most  
exciting areas in medical science  
our successes to date only make us 
hungrier for progress in the future  
the challenges are always there  
by combining our focus and 
dedication with a clear strategic 
approach we aim to meet them  
and beat them head on oxford biomedica plc   annual report and accounts 2011 17
operational highlights
our strong operational progress during 
2011 has resulted in a diversified portfolio 
with five core clinical programmes and 
the successful commissioning of our 
proprietary manufacturing facility
securing three ind approvals from  
the fda within 12 months for our novel 
ocular gene therapies partnered with 
sanofi was an exceptional achievement 
and we are also pleased to have secured 
new industry collaborations
with tough economic conditions 
impacting companies and influencing 
sector dynamics we continue  
to monitor our expenditure and  
remain committed to maximising  
the opportunities ahead oxford biomedica plc   annual report and accounts 2011 18
operational review
lentivector
® 
platform
the lentivector
®
 platform
oxford biomedica’s proprietary 
lentivector
®
 technology platform  
is a highly efficient system for the 
delivery of therapeutic genes to  
a wide range of tissues and it has 
specific advantages for targeting 
diseases of the central nervous 
system and the eye the company’s 
most advanced lentivector
®
 
platform candidate is prosavin
®
 for 
parkinson’s disease in partnership 
with sanofi oxford biomedica  
is also developing four products  
for the treatment of ocular diseases 
these five core lentivector
®
 
platform candidates benefit from  
a common manufacturing platform 
and regulatory procedures the 
company is also working with 
leading scientific teams to address 
other unmet needs such as the 
treatment of glaucoma and motor 
neuron disease
prosavin
®
 
genebased therapy for 
parkinson’s disease pd
prosavin
®
 is being evaluated in  
a phase iii trial to assess the safety 
efficacy and dose evaluation in 
patients with midstage parkinson’s 
disease who are experiencing 
reduced benefit on ldopa 
“equivalent” therapy three ascending 
dose levels 1x 2x and 5x have  
been evaluated in 15 patients  
to date six patients received the  
2x dose three of which were treated 
using an enhanced administration 
procedure which facilitates higher 
dosing and reduces surgical delivery 
time of the 2x dose by approximately 
50 the highest 5x dose level  
of prosavin
®
 which is the scaled 
equivalent to the optimal dose in 
preclinical studies is being assessed 
in the most recent sixpatient cohort 
patients have been treated at  
two centres of excellence for 
neurosurgery the henri mondor 
hospital in paris france with 
professor stéphane palfi as principal 
investigator and coordinating 
investigator and at addenbrookes 
hospital in cambridge uk with  
dr roger barker as principal 
investigator
highlights 2011
—   encouraging data from prosavin
®
  phase iii study in parkinson’s 
  disease
—  dmc confirmed that highest 
  5x dose shows most promising 
  efficacy to date
—   further product optimisation 
could provide up to 10fold 
increase in dopamine production
positive data presented at largest 
scientific conference for genetic  
 cellular therapeutics
in may 2011 data from the phase iii 
study were presented at the american 
society of gene  cell therapy 
asgct 14th annual meeting held  
in seattle usa by professor stéphane 
palfi a sixmonth assessment of  
the third patient cohort treated  
with a 2x dose of prosavin
®
 using  
an enhanced administration method 
revealed the highest efficacy results 
observed to date with 43 average 
motor function improvement and  
a maximum of 61 in one patient  
in addition patient diary measures 
such as increased functional “on” 
time when pd symptoms are not 
present reduced “off” time after 
withdrawal of pd medication and 
improved quality of life also support 
the positive impact on patients’ lives 
further underlining the potential  
for prosavin
®
 to address the motor 
symptoms of pd
encouraging signs of clinical 
benefit for parkinson’s patients
in august 2011 oxford biomedica 
reported a positive interim review  
of the fourth patient cohort treated 
with the highest 5x dose of 
prosavin
®
 by the study’s independent 
data monitoring committee dmc 
at the threemonth time point  
the highest average motor function 
improvement of 29 was observed 
with a maximum of 49 improvement 
in one patient patients also reduced 
their average daily dose of ldopa 
“equivalent” therapy whereas typically 
they would require an increase  
in dose given the nature of this 
inexorably degenerative disease 
importantly the dmc acknowledged 
that the improvements in motor 
function with decreased oral 
dopaminergic therapy observed  
to date are encouraging and clinically 
relevant if replicated in randomised 
studies such levels of improvement 
would make a substantial difference 
to a patient’s life oxford biomedica plc   annual report and accounts 2011 19
significant longterm 
improvements vs progressively 
degenerating disease
as part of an interim review in 
december 2011 oxford biomedica 
and its clinical experts performed  
an efficacy analysis across all  
15 patients treated at the latest 
available assessment time points  
and concluded
 —   interim data show that prosavin
®
 
mediates improvement in motor 
function in all cohorts at six
month primary efficacy endpoint
—   population analysis of first three 
cohorts 12 month data for n9 
shows prosavin
®
 significantly 
improves motor function relative  
to baseline in progressively 
degenerating disease
  —    improvement remains 
statistically significant up  
to 12 months
  —    improvement over baseline 
maintained up to 24 months 
first two cohorts n6
—   prosavin
®
 demonstrates efficacy 
across range of disease severity − 
important in a disease such  
as pd where patient population  
is heterogeneous
—    average reduction in ldopa 
“equivalent” therapy in all cohorts
in addition to the improvements 
observed across multiple endpoints 
functional imaging data using 
positron emission tomography pet 
scans to produce a detailed three
dimensional picture inside the body 
also suggest dopamine da provision 
attributable to prosavin
®
 at the 
highest 5x dose
 
independent experts confirm  
5x dose shows most promising 
efficacy to date
in december 2011 oxford biomedica 
also announced a positive review of 
all four patient cohorts by the study’s 
independent dmc a multidisciplinary 
panel with expertise in parkinson’s 
disease and virology in addition to 
prosavin’s longterm safety profile 
now up to 36 months posttreatment 
1x dose the dmc confirmed that the 
fourth patient cohort 5x dose shows 
most promising signs of efficacy  
to date see table below
support from dmc to investigate 
enhanced construct in phase ii 
programme
oxford biomedica and its clinical 
experts believe that the interim 
prosavin
®
 data set continues  
to support planning for a sham
controlled phase ii study during  
2011 the company identified and 
developed an enhanced product 
construct based on prosavin’s
®
 
dopaminergic enzymes the new 
construct can potentially provide  
up to a 10fold increase in dopamine 
production capacity allowing further 
dose escalation without impacting 
volume or rate of administration  
in addition the new construct offers 
extended patent protection and a 
relative reduction in cost of goods 
thus increasing the commercial 
opportunity for prosavin
®
 with  
the support of the study’s independent 
dmc oxford biomedica is evaluating 
a strategy to move the new construct 
into development as part of a phase  
ii programme
cohort 1 2 3 4
 1x dose 2x dose 2x dose 5x dose
improvement in updrs part iii “off” score
1
 
average reduction in ldopa “equivalent” therapy 
improvement in updrs part iii “on” score
2
 
reduction in pet
3
 signal ie increase in da
4
 provision
1  unified parkinson’s disease rating scale updrs in patients’ “off” state  
ie after withdrawal of pd medication
2  unified parkinson’s disease rating scale updrs in patients’ “on” state  
ie with medication and when pd symptoms are not present
3  positron emission tomography scan used to produce a detailed  
threedimensional picture inside the body
4 da  dopamine
 
prosavin
®
 12month efficacy analysis cohorts 13
1
motor function as measured by updrs part iii  
“off” score
2
 —  the first three cohorts n9 have all reached  
a 12month assessment
 —  motor function improvements are stable  
in all three cohorts
 —  typical disease progression with ldopa  
is 34 updrs points per year
3
 —  significant improvements in motor function  
are sustained for at least 12 months following 
treatment with prosavin
®
 1  data are combined from all nine patients  
in cohorts 1 2 and 3 who have been on study  
for at least 12 months   p 005   p001
 2  unified parkinson’s disease rating scale updrs 
in patients’ “off” state ie after withdrawal  
of pd medication
 3  source olanow et al 2005 ann neurol  
3 40314
3m 6m 12m baseline
time posttreatment
expected disease progression without prosavin
®
updrs part iii “off” score
5x
the dmc confirmed that the  
fourth prosavin
®
 patient cohort 5x dose  
shows most promising signs  
of efficacy to date
40
30
20
10
0


 oxford biomedica plc   annual report and accounts 2011 20
operational review
lentivector
® 
platform
partnering initiative
as previously announced partnering 
discussions for prosavin
®
 have been 
influenced by a potential partner’s 
view of the risk associated with the 
early stage of the product the ability 
to control future manufacturing  
and the regulatory path to registration 
given that prosavin
®
 is an entirely 
novel product following the 
european medicines agency’s 
validation of the planned route  
to registration and the acquisition  
of a uk manufacturing facility  
oxford biomedica has successfully 
addressed two of these key issues
in terms of the risk associated  
with prosavin
®
 as an early stage  
gene therapy for pd moving into  
a randomised phase ii study will  
add significant value and further 
derisk the product given the 
encouraging clinical results and 
positive analyses to date oxford 
biomedica had anticipated that data 
from the highest 5x dose cohort 
could crystallise a partnering deal  
in late 2011 or early 2012 however 
whilst independent experts have 
confirmed that the 5x dose of 
prosavin
®
 has indeed shown the  
most promising signs of efficacy  
to date interested parties are keen  
for oxford biomedica to investigate 
the enhanced product construct  
as part of a phase ii programme to 
ensure the greatest chance of success 
in randomised studies as a result 
securing further funding via a 
development partnership for this  
core programme has taken longer 
than expected with further product 
optimisation ongoing a randomised 
phase ii study is unlikely to be 
initiated in 2012 oxford biomedica  
is focused on nonclinical bridging 
studies and preparing the regulatory 
pathway for future us and eu 
regulatory applications 
next milestones
the primary efficacy endpoint  
of the current phase iii study  
is the sixmonth updrs assessment 
allowing time for improvements  
in patients’ condition to stabilise 
including appropriate adjustments  
in background oral dopaminergic 
therapy results from all six patients  
in the fourth 5x dose cohort  
are expected in h1 2012 in the 
meantime the company holds 
regular updates with interested 
parties and is evaluating the most 
effective strategy to advance 
prosavin
®
 into its next stage  
of development
market opportunity
parkinson’s disease affects 
approximately 15 million patients  
in the seven major markets  
us japan uk france germany  
italy and spain which is projected  
to rise to 17 million by 2019 none  
of the current treatments provide 
longterm relief from symptoms  
yet by 2019 sales of these treatments 
could exceed us28 billion in  
the seven major markets source 
datamonitor dec2010 prosavin
®
 
has the potential to address a major 
unmet medical need in parkinson’s 
disease offering longlasting benefit 
from a single administration with an 
excellent safety profile the product 
could therefore also significantly 
reduce the social care burden  
that is associated with the mid  
to latestage of disease
oxford biomedica is focused  
on nonclinical bridging studies  
and preparing the regulatory 
pathway for future us and eu 
regulatory applications
28bn
none of the current treatments  
for parkinson’s disease provide 
longterm relief from symptoms  
yet by 2019 sales of these 
treatments could exceed  
us28 billion oxford biomedica plc   annual report and accounts 2011 21
ocular portfolio
genebased therapies
in collaboration with sanofi  
oxford biomedica is developing  
four lentivector
®
 platform product 
candidates for the treatment of  
ocular diseases retinostat
®
 for “wet” 
agerelated macular degeneration 
amd stargen
™ 
for stargardt disease 
ushstat
®
 for usher syndrome type  
1b and encorstat
®
 for corneal graft 
rejection this partnership is an 
endorsement of the company’s 
lentivector
®
 platform and 
furthermore sanofi’s investment  
in the platform technology benefits 
oxford biomedica’s development 
programmes in other therapeutic 
areas oxford biomedica is also 
privileged to be working with mayo 
clinic rochester usa to develop  
a novel gene therapy for the 
treatment of chronic glaucoma
highlights 2011
—  ocular gene therapy 
  programmes partnered with 
  sanofi progressing well
—   two new phase iii trials 
underway retinostat
®
 phase i 
and stargen
™ 
phase iiia
—    third successive ind approval 
from fda received for ushstat
®
 
phase iiia study
landmark partnership  
with sanofi
the ocular collaboration with sanofi 
signed in april 2009 included an 
upfront receipt of us26 million and 
up to us24 million in development 
funding over the initial phase of 
development following successful 
phase iii completion oxford 
biomedica may receive further 
undisclosed license fees milestone 
payments and royalties on product 
sales the terms of which are 
consistent with other deals of this 
scope and size furthermore there  
is considerable opportunity to expand 
the collaboration with the addition  
of other indications and related 
product candidates for example 
retinostat
®
 could be evaluated  
as a treatment for diabetic  
macular oedema
three ocular ind applications 
approved by fda within 12 months
oxford biomedica works very closely 
with the regulatory agencies in order 
to define the development pathways 
for its novel gene therapies in 
november 2010 the us food and 
drug administration fda approved 
oxford biomedica’s investigational 
new drug ind application for 
retinostat
®
 resulting in the initiation 
of the first us clinical study using  
the company’s lentivector
®
 platform 
technology in january 2011 this was 
a major event for oxford biomedica 
and would also support subsequent 
lentivector
®
 platform regulatory 
submissions accordingly the fda 
approved the stargen
™ 
and ushstat
®
 
ind applications in march and 
october 2011 respectively  
receiving three ind approvals from 
the us regulatory agencies within  
12 months represents an exceptional 
achievement for the company’s  
rd and regulatory teams oxford 
biomedica also held a preind 
meeting with the fda in september 
2011 for encorstat
®
 to discuss the 
proposed development strategy  
in preparation for a phase iii trial 
together with sanofi the company 
continues to evaluate the optimal 
route for commercial development  
of this novel product
lead retinostat
®
 phase i trial  
in “wet” amd on track
six patients have been treated with 
retinostat
®
 in the ongoing us phase i 
study in neovascular “wet” age
related macular degeneration amd 
three patients received the first dose 
level three received the second dose 
level and the third patient cohort 
dose level 3 is underway the open 
label dose escalation phase i study 
will enrol 18 patients with “wet” amd 
at the wilmer eye institute at johns 
hopkins baltimore usa led by 
professor peter campochiaro the 
study will evaluate three dose levels 
and assess safety and aspects of 
ocular physiology oxford biomedica 
is on track to announce first results  
in h1 2012
there is considerable opportunity  
to expand the sanofi collaboration 
with the addition of other indications 
and related product candidates
47m
the ocular diseases we  
are targeting in our sanofi  
collaboration affect 47 million  
people worldwide oxford biomedica plc   annual report and accounts 2011 22
operational review
lentivector
® 
platform
first gene therapy clinical  
trials in stargardt disease and  
usher syndrome underway
there are currently no approved 
treatments for stargardt disease and 
usher syndrome type 1b and other 
potential strategies do not target the 
root cause of the disease as such 
stargen
™ 
and ushstat
®
 have received 
both european and us orphan  
drug designation which brings 
development regulatory and 
commercial benefits 
in june 2011 the first patient in the 
stargen
™ 
phase iiia study in stargardt 
disease was treated in the us in july 
2011 the french regulatory agency 
afssaps approved the opening of  
a second clinical site in france in the 
us the study is led by professor david 
wilson at the oregon health and 
science university portland oregon 
in france professor josealain  
sahel leads the study at the centre 
hospitalier national d’opthalmologie 
des quinzevingts paris four patients 
have been treated to date at the first 
dose level and the second cohort 
using dose level 1 in earlierstage 
patients is underway the open label 
dose escalation phase iiia study  
will enrol up to 28 patients and will 
evaluate three dose levels for safety 
tolerability and aspects of biological 
activity first results are expected  
in h2 2012 
in february 2012 the ushstat
®
 phase 
iiia study in usher syndrome type 1b 
commenced in the us at the oregon 
health  science university’s casey 
eye institute led by professor richard 
weleber as principal investigator  
the open label dose escalation phase 
iiia study will enrol up to 18 patients 
and will evaluate three dose levels  
for safety tolerability and aspects  
of biological activity initial results  
are expected in h2 2012
positive reviews from independent 
data safety monitoring board
in june 2011 oxford biomedica 
reported a positive interim review  
of the first retinostat
®
 patient cohort 
by the study’s independent data 
safety monitoring board dsmb  
an independent panel of specialists  
in the fields of ophthalmology 
virology and vectorology retinostat
®
 
was safe and welltolerated at one 
month following treatment with no 
signs of inflammation in the eye 
in january 2012 the company 
received its second positive dsmb 
review of the retinostat
®
 and 
stargen
™ 
programmes both products 
demonstrated a favourable safety 
profile with no serious adverse events 
related to retinostat
®
 stargen
™  
or the methods of administration 
importantly retinostat
®
 and stargen
™ 
demonstrate continued safety  
six months and one month post
treatment respectively the dsmb 
gave its support to proceed to the 
final ascending dose patient cohort 
for retinostat
®
 dose level 3 and  
the second stargen
™ 
patient cohort 
both of which are underway
market opportunity
amd is a major cause of blindness 
affecting an estimated 25 million to 
30 million people worldwide and the 
incidence of amd is expected to triple 
by the year 2025 neovascular “wet” 
amd accounts for 90 of all severe 
vision loss from the disease with  
up to 45 million patients worldwide 
source amd alliance international 
the industry standard treatment for 
“wet” amd and other related ocular 
conditions had global sales in excess 
of us37 billion in 2011 source 
novartisroche on the basis of 
preclinical data it is anticipated that 
retinostat
®
 may require only a single 
administration if so this would give 
the product a significant advantage  
in the market over currently available 
treatments that require frequent 
repeated administration there are 
currently no approved treatments  
for stargardt disease usher syndrome 
type 1b and corneal graft rejection 
stargen
™
 ushstat
®
 and encorstat
®
 
have a common technology platform 
manufacturing technique and safety 
in toxicology studies and it is these 
sorts of niche indications that can 
build significant business value 
again it is anticipated that a single 
application of oxford biomedica’s 
genebased products could provide 
longterm or potentially permanent 
benefits for patients suffering from 
these debilitating diseases
lentivector
®
 technology  
it is anticipated that a single 
application of oxford biomedica’s 
genebased products could provide 
longterm or potentially permanent 
benefits for patients
25—30m
amd is a major cause of blindness  
affecting an estimated 25 to 30 million  
people worldwide and the incidence  
of amd is expected to triple by the  
year 2025 oxford biomedica plc   annual report and accounts 2011 23
glaucomagt  
new collaboration with mayo 
clinic for chronic glaucoma
in october 2011 oxford biomedica 
entered into a research and 
development collaboration with 
mayo clinic rochester usa  
to develop a novel gene therapy for 
the treatment of chronic glaucoma 
under the terms of the agreement 
mayo clinic and oxford biomedica 
will undertake preclinical studies  
to establish the feasibility of treating 
glaucoma using oxford biomedica’s 
proprietary lentivector
®
 gene delivery 
technology expressing a cox2  
gene and a pgf2a receptor gene  
to reduce intraocular pressure
highlights 2011
—    l entiv ect or
®
 platform 
  collaboration with mayo clinic 
  usa for chronic glaucoma
since the start of the collaboration 
the teams have successfully  
initiated the first preclinical study 
which aims to demonstrate gene 
transfer using oxford biomedica’s 
lentivector
®
 platform technology  
to target ocular tissues following 
transcorneal administration 
preliminary results from this study  
are encouraging and indicate 
effective and robust gene transfer  
into the target ocular tissues  
a second preclinical study is 
expected to begin in q2 2012 to 
evaluate the lowering of intraocular 
pressure following administration  
of the collaboration’s glaucomagt
market opportunity
glaucoma is a group of eye  
diseases characterised by vision  
loss due to damage of the optic  
nerve affecting over 60 million  
people worldwide source mayo 
clinic glaucoma is the biggest 
ophthalmic market with global  
sales of over us5 billion in 2008 
treating seven million cases in the 
seven major markets the most 
common form of glaucoma  
is classed as primary openangle 
glaucoma also known as chronic 
glaucoma or chronic openangle 
glaucoma which accounts for 
7595 of all glaucoma patients 
source datamonitor 2010 
since the start of the chronic 
glaucoma collaboration with  
mayo clinic we have successfully 
initiated the first preclinical study 
which aims to demonstrate gene 
transfer using oxford biomedica’s 
lentivector
®
 platform technology
60m 
glaucoma is a group of eye diseases 
characterised by vision loss due  
to damage of the optic nerve affecting 
over 60 million people worldwide oxford biomedica plc   annual report and accounts 2011 24
operational review
lentivector
® 
platform
monudin
®
motor neuron disease
the preclinical development of 
monudin
®
 is supported by the uk 
motor neurone disease association 
mnda monudin
®
 has shown 
promising results in early preclinical 
studies and oxford biomedica is 
optimising the product for clinical 
trials the company’s lentivector
®
 
platform technology has the ability  
to deliver genes safely and efficiently 
to the neuronal cells affected by 
motor neuron disease oxford 
biomedica is working with nonprofit 
research groups and organisations to 
explore novel therapeutic approaches 
to treat amyotrophic lateral sclerosis 
als the most prevalent type  
of motor neuron disease
working together with leading 
academic organisations
oxford biomedica’s ongoing 
collaboration with vibuniversity of 
leuven funded by a grant from the 
mnda is focused on the preclinical 
development of monudin
®
 for the 
treatment of als the collaboration 
builds on previous work funded  
by mnda and will utilise oxford 
biomedica’s lentivector
®
 platform 
technology to compare the 
therapeutic potential of two forms  
of vascular endothelial growth factor 
vegf following successful gene 
expression studies in 2011 to evaluate 
the optimal delivery route for this 
approach oxford biomedica has 
demonstrated vegf expression using 
its lentivector
®
 platform technology 
in cells and also in vivo using  
two different forms of the vegf 
therapeutic gene further preclinical 
work to evaluate the efficacy  
of these vegf forms is expected  
to start in q2 2012
during 2011 in collaboration with the 
university of bristol oxford biomedica 
also investigated the effects of 
monudin
®
 in a preclinical model  
of als using a new route of delivery 
for administration directly into the 
cerebrospinal fluid bathing the spinal 
cord the results of this study have 
demonstrated proofofconcept  
for this intracerebroventricular 
delivery route
one of the major hurdles to treating 
motor neurone disease is ensuring 
that therapeutic agents are delivered 
to the relevant site of action in the 
brain and spinal cord therefore both 
collaborations continue to support 
oxford biomedica’s planning for  
the future clinical development  
of monudin
®

market opportunity
despite being one of the most 
common neurodegenerative diseases 
of adult onset motor neuron disease 
has a high unmet need amyotrophic 
lateral sclerosis als often referred  
to as lou gehrig’s disease is the  
most prevalent type of motor neuron 
disease in the us there are an 
estimated 30000 patients with  
als and nearly 6000 new cases  
are diagnosed annually source  
als association only one drug  
has been approved for the treatment 
of als and its benefit is a modest 
increase in survival time if monudin
®
 
proves to be an effective neuro
protective treatment that can slow  
or arrest injury to patients’ motor 
neurons it would have compelling 
competitive advantages
monudin
®
 has shown promising 
results in early preclinical studies 
and oxford biomedica is optimising 
the product for clinical trials 
6000
high unmet need
in the us there are an estimated  
30000 patients with als and nearly  
6000 new cases are diagnosed  
annually oxford biomedica plc  annual report and accounts 2011 25
lentivector
®
 platform 
manufacturing
historically all of oxford biomedica’s 
manufacturing to good manufacturing 
practice gmp standards has  
been outsourced to a contract 
manufacturing organisation 
however given the pivotal role  
of manufacturing in biological  
drug development and the planned 
growth of the company’s clinical 
lentivector
®
 platform portfolio during 
2011 oxford biomedica conducted a 
strategic review in 2010 to maximise 
control and minimise risks associated 
with manufacturing
highlights 2011
—   successful acquisition of
  specialist manufacturing facility 
  to support core programmes
—   commissioning pr ocess  
complete and on budget
—  preparation for mhra license  
  on track to enable gmp  
  manufacturing for clinical supply
successful acquisition  
of uk manufacturing facility  
in cowley oxford
in february 2011 oxford biomedica 
acquired a uk manufacturing facility 
for £19 million which represents a 
fraction of the cost of a new build 
the facility totals approximately 
16000 square feet which includes  
c 4400 square feet in cleanrooms  
and is situated less than three miles 
from the company’s head office  
this investment in the company’s 
specialist manufacturing processes 
will address one of the main hurdles 
associated with the rapid progression 
of products through phase ii phase iii 
and to market and importantly  
also provides the opportunity  
for oxford biomedica to become  
the lentivector
®
 platform supplier  
of choice for its current and  
future partners
commissioning process complete
oxford biomedica appointed james 
christie a senior biopharmaceutical 
executive with over 30 years of 
experience in the industry as head  
of manufacturing in february 2011 
led by james an integrated  
team comprising manufacturing 
development quality control  
quality assurance engineering  
and logistics expertise have been 
engaged in commissioning the 
facility throughout 2011 in line  
with expectations and on budget  
the manufacturing facility is now 
fullycommissioned and produced  
its first pilot run at the end of 2011
new msat team in operation
the company’s manufacturing 
sciences and technology msat 
team is now in place the msat team 
covers all aspects of biological and 
fillfinish manufacturing by bringing 
together core expertise in process 
development process improvement 
and optimisation technology  
transfer and process monitoring  
and troubleshooting with msat 
manufacturing  supply quality 
assurance and quality control 
oxford biomedica has the necessary 
capabilities and core competencies  
to develop and support current  
and future production activities
next steps
oxford biomedica is currently 
manufacturing product batches  
in preparation for obtaining  
a license from the uk medicines  
and healthcare products regulatory 
agency mhra to enable gmp 
manufacturing for clinical supply 
subject to receiving mhra approval 
progress remains on track for  
the manufacturing facility to  
be fullyoperational in h1 2012 
oxford biomedica also plans  
to work towards a recognised 
environmental programme
16000
the manufacturing facility totals  
approximately 16000 square feet  
which includes c 4400 square  
feet in cleanrooms and is situated  
less than three miles from the  
company’s head office
the investment in the company’s 
specialist manufacturing processes 
will address one of the main  
hurdles associated with the rapid 
progression of products through 
phase ii phase iii and to market oxford biomedica plc   annual report and accounts 2011 26
operational review
5t4 tumour antigen  
platform
 trovax
® 
mva5t4
therapeutic cancer vaccine
trovax
®
 is a latestage clinical asset 
that has completed 10 clinical trials  
in colorectal renal and prostate 
cancer it is currently being evaluated 
in a randomised openlabel phase ii 
study in patients with metastatic 
hormone refractory prostate cancer 
hrpc oxford biomedica also 
continues to receive interest from 
oncologists and clinicians regarding 
the future development of trovax
®
  
in several cancer indications which 
have a clear unmet medical need  
and a lack of effective treatments  
a number of sponsored phase ii 
clinical studies are expected  
to commence during 2012
highlights 2011
—   furt her t r ov ax
®
 phase iii analyses
  published in cancer immunology
  immunotherapy
—   biomarker can potentially  
target a more responsive patient 
population
—   enthusiasm from the oncology 
community for multiple phase ii 
sponsored studies
biomarker potentially targets a 
more responsive patient population
in march 2011 analyses of the trovax
®
 
renal immunotherapy survival  
trial “trist” phase iii study were 
published in cancer immunology 
immunotherapy the official journal 
of the association for cancer 
immunotherapy oxford biomedica 
has identified an algorithm biomarker 
the “immune response surrogate” 
for predicting the quantitative  
5t4 antibody response induced  
by trovax
®
 in order to identify  
those patients who are most likely  
to mount a strong 5t4 antibody 
response subsequent to trovax
®
 
administration importantly the 
biomarker was also relevant when 
applied to an independent dataset 
derived from the nine historic phase i 
and ii studies in patients with renal 
colorectal and prostate cancer which 
suggests that the biomarker could 
potentially be applied to multiple 
cancer types the biomarker will be 
used in all future trovax
®
 clinical trials 
in order to target a more responsive 
patient population including the 
ongoing hrpc phase ii trial
phase ii study in hormone 
refractory prostate cancer hrpc
the ongoing randomised openlabel 
phase ii study in patients with 
metastatic hrpc is designed to 
evaluate the activity of trovax
®
 plus 
chemotherapy drug docetaxel versus 
docetaxel alone the study is being 
led by dr anna ferrari new york 
university cancer institute usa  
and has been carefully designed  
to give early proofofconcept  
by monitoring changes in prostate 
specific antigen kinetics one of  
the most widely used oncological 
biomarkers in clinical research 
the first centre started recruiting 
patients in september 2010 and  
the number of recruiting clinical  
sites expanded to eight during 2011 
however with new prostate cancer 
treatments on the us market  
in addition to other clinical trials 
targeting the same indication 
competition for suitable patients  
is high as a result recruitment  
rates during h2 2011 were slower 
than anticipated and two of the 
centres have ceased recruitment  
as previously communicated initial 
results from patients treated to  
date are still expected in h2 2012  
and oxford biomedica is closely 
monitoring the progress of  
this study
the 5t4 tumour antigen platform
oxford biomedica’s proprietary  
5t4 antigen is an ideal target for 
anticancer treatment given its 
restricted expression on normal 
tissues and its high prevalence  
on the surface of cancerous  
cells across a wide range of  
solid tumours trovax
®
 is oxford 
biomedica’s 5t4specific therapeutic 
vaccine candidate which is in phase 
ii development in partnership with 
pfizer preclinical evaluation of 
oxford biomedica’s 5t4targeted 
antibody is ongoing to optimise  
the product for clinical development 
pfizer also has nonexclusive rights 
for the in vitro diagnostic use  
of 5t4 antibodies the company  
is also collaborating with imaginab  
to engineer an in vivo diagnostic 
imaging agent using an antibody 
targeting 5t4 for positron emission 
tomography pet cancer imaging oxford biomedica plc   annual report and accounts 2011 27
multiple sponsored phase ii studies 
to be initiated by collaborators
in april 2011 the team of cancer 
immunologists at cardiff university 
and velindre cancer centre wales 
uk received a favourable opinion 
from the gene therapy advisory 
committee gtac and cta approval 
from the medicines and healthcare 
products regulatory agency mhra 
to undertake a phase ii study for 
trovax
®
 in patients with malignant 
pleural mesothelioma the study  
will be funded by the june hancock 
mesothelioma research fund and  
the velindre cancer centre stepping 
stones appeal and oxford biomedica 
will provide trovax
®
 recruitment  
is expected to commence during  
h1 2012
oxford biomedica’s collaborators  
at cardiff university received mhra 
approval in july 2011 and a favourable 
gtac opinion in august 2011 to 
evaluate trovax
®
 in patients with 
inoperable metastatic colorectal 
cancer the phase ii study will  
be sponsored by cardiff university  
and oxford biomedica will provide 
trovax
®
 recruitment is expected  
to begin during h1 2012
the company continues to work 
with its partners at the uk national 
cancer research network ncrn in 
order to develop a phase ii metastatic 
ovarian cancer protocol the protocol 
received a positive review by the 
clinical trials awards and advisory 
committee ctaac in november 
2011 following amendments to 
reflect the ctaac opinion the study 
protocol will be submitted to the 
gtac subject to gtac approval the 
study is estimated to start in q3 2012
partnering initiative
expenditure on trovax
®
 is  
closely monitored and given the 
interest within the oncology field 
management continues to explore 
collaborations through clinical 
networks in order to generate further 
data and leverage the value of the 
product securing a development  
or financial partner for trovax
®
’s 
future latestage development 
remains a key strategic priority  
for the company and discussions 
with interested parties are ongoing
market opportunity 
at 477 billion cancer is one of  
the largest fastest growing markets  
in the pharmaceutical industry 
according to marketresearchcom  
in prostate cancer alone the global 
vaccine market is expected to reach 
us23 billion in 2017 growing  
at a compound annual rate of 66 
source globaldata trovax
®
 is  
not prostate cancer specific and  
is administered in the same way  
as most infectious disease vaccines 
are given a simple injection in the 
arm if trovax
®
 is shown to be 
efficacious in a pivotal registration 
trial for even just one of the major 
cancers where it is known that 5t4  
is present on the tumours it has 
significant potential
oxford biomedica’s collaborators  
at cardiff university received  
mhra approval in july 2011  
and a favourable gtac opinion  
in august 2011 to evaluate  
trovax
®
 in patients with inoperable  
metastatic colorectal cancer
477bn
at 47 7 billion cancer is one of  
the largest fastest growing markets  
in the pharmaceutical industry
10
trovax
®
 is a latestage clinical  
asset that has completed 10 clinical  
trials in colorectal renal and  
prostate cancer oxford biomedica plc   annual report and accounts 2011 28
targeted antibody therapy  
for cancer
partnered with pfizer
oxford biomedica licensed global 
rights to develop antibodies targeting 
the 5t4 tumour antigen for the 
treatment of cancer to wyeth 
acquired by pfizer in 2009 in 2001 
the original agreement is potentially 
worth us24 million which comprises 
upfront payments license option  
fees and milestone payments that  
are subject to the achievement of 
certain project objectives additionally 
under the agreement oxford 
biomedica will receive royalties  
on sales of products targeting  
the proprietary 5t4 antigen that  
are developed and commercialized 
by pfizer
highlights 2011
—   partnership with pfizer broadened 
  to include in vitro diagnostic use 
  of 5t4 antibodies
diagnostic rights secured in 
preparation for investigational  
new drug ind application
in may 2011 oxford biomedica 
broadened its licensing agreement 
with pfizer granting nonexclusive 
rights for the in vitro diagnostic  
use of 5t4 antibodies including  
an option for commercialisation of  
a 5t4based diagnostic the potential 
value of this collaboration is now  
up to us28 million which comprises 
upfront payments license option  
fees and milestone payments that are 
subject to the achievement of certain 
project objectives the next milestone 
payment to oxford biomedica would 
be due if pfizer initiates clinical trials 
for the development of a 5t4targeted 
antibody therapy
data presented by pfizer at isrec 
symposium 2011 in switzerland
in september 2011 pfizer presented 
new data at the isrec symposium 
which confirmed that 5t4 is the single 
oncology target for the antibodydrug 
conjugate adc technology licensed 
from seattle genetics earlier this year 
the oncology research unit has 
synthesised an anti5t4 antibody
drug conjugate adc called 
a1mcmmaf and has shown that 
a1mcmmaf can eradicate tumour 
cells that have heterogeneous 
expression of 5t4
market opportunity
the concept of an anticancer 
therapy which has antibodylike 
specificity as well as chemotherapy
like potency is clearly attractive  
the 5t4targeted antibody therapy 
has the potential to benefit patients 
with any solid cancer that expresses 
the 5t4 tumour antigen which 
represents a multibillion us dollar 
market based on the product’s 
profile it could have application  
as a single agent or could be used  
in combination with other treatments 
including therapeutic vaccines such 
as trovax
®

operational review
5t4 tumour antigen
the concept of an anticancer 
therapy which has antibodylike 
specificity as well as chemotherapy
like potency is clearly attractive
28m
potential worth of agreement  
with pfizer for 5t4 tumour antigen  
collaboration oxford biomedica plc   annual report and accounts 2011 29
diagnostic cancer imaging
new research collaboration 
with imaginab
in june 2011 oxford biomedica 
announced its collaboration with 
imaginab to engineer an in vivo 
diagnostic imaging agent using  
an antibody fragment targeting  
the 5t4 tumour antigen following 
proofofconcept the agreement 
includes an option for imaginab  
to negotiate an exclusive license  
for commercialisation of an in vivo 
5t4based imaging diagnostic  
on that basis oxford biomedica 
could receive proceeds of up to  
us4 million in initiation and 
development milestone payments  
in addition to royalties on product 
sales subject to the achievement  
of certain programme objectives 
since the start of the collaboration 
progress is on track and the teams  
are preparing for preclinical studies 
to begin in h1 2012
highlights 2011
—    co llabor ation wit h imaginab 
  to engineer a 5t4based in vivo 
  diagnostic imaging agent
other products
oxford biomedica has some noncore 
assets where although development 
is no longer funded by the company 
there remains potential to realise 
value from previously completed 
clinical and preclinical studies  
these products include endoangio
gt a genebased antiangiogenic 
therapy for cancer hi8
®
 mel  
a therapeutic vaccine for metastatic 
melanoma and metxia
®
 a gene
directed enzyme prodrug therapy 
gdept strategy for pancreatic 
cancer oxford biomedica seeks  
to realise the value of these assets 
through partnerships a divestment 
process for outlicensing hi8
®
 mel 
concluded in june 2011 without 
securing a partner on this occasion 
consequently an impairment charge 
of £31 million was recognised in 
june 2011 to write the hi8
®
 mel 
asset down to zero
board changes
at the annual general meeting on  
5 may 2011 nick rodgers previously 
nonexecutive director senior 
independent director and deputy 
chairman of oxford biomedica was 
appointed chairman of the company 
following dr alan kingsman leaving 
the board as a result dr andrew 
heath nonexecutive director was 
appointed the senior independent 
director and deputy chairman 
oxford biomedica expresses its  
deep gratitude to dr kingsman  
for his invaluable contribution to  
the company over the last 15 years 
dr kingsman will continue to be  
a consultant to oxford biomedica
on 24 may 2011 dr alex lewis  
was appointed director of corporate 
activities and strategy and a member 
of the senior management team and 
as a result stepped down from the 
board in place of dr lewis dr paul 
blake became chairman of oxford 
biomedica’s remuneration committee 
and dr heath joined the company’s 
remuneration committee
tim watts was appointed to the 
board as chief financial officer and 
company secretary of the company 
in february 2012 as andrew wood 
stepped down from the board  
of oxford biomedica andrew will 
continue as an employee of the 
company for the time being to ensure 
the smooth transition of the role 
oxford biomedica thanks andrew  
for his substantial contribution to  
the company since its ipo in 1996 
and wishes him well for the future
4m
oxford biomedica could receive  
proceeds of up to us4 million in  
initiation and development milestone  
payments from its collaboration  
with imaginab
oxford biomedica announced  
a collaboration with imaginab  
to engineer an in vivo diagnostic 
imaging agent using an antibody 
fragment targeting the 5t4  
tumour antigen  oxford biomedica plc  annual report and accounts 2011 30
2011 was a year of growth for oxford biomedica’s ocular portfolio  
with three pioneering ocular phase iii programmes underway and  
a new research and development collaboration with mayo clinic usa  
for chronic glaucoma here dr stuart naylor explains oxford biomedica’s 
journey of ocular translational medicine and the importance of strong 
relationships and industry alliances in delivering success 
oxford biomedica was founded in 1995 by professors alan and susan 
kingsman as a technology spinout from the university of oxford’s 
department of biochemistry our technology is based on a lentiviral gene 
delivery programme using an equine viral vector this lentivector
®
 gene 
delivery technology is the most effective platform for targeting nondividing 
cells such as those in the brain and the eye it also has the ability to deliver 
therapeutic genes into those cells and express therapeutic proteins for  
the life of a particular cell and therefore we hope the life of the patient
what we aim to do at oxford biomedica which i believe sets us apart in  
the field of gene therapy is to develop our lentivector
®
 platform technology 
for clinical application in indications which are an appropriate match we 
initially started investigating the use of our lentivector
®
 platform to block  
the aberrant blood vessel growth which underlies “wet” agerelated macular 
degeneration amd it was whilst carrying out this research in the retina that 
we first came across the foundation fighting blindness ffb dr tim schoen 
director of scienceresearch communications at ffb helpfully introduced  
us to the scientific team at ffb at the same time we were thrilled to receive  
a call from dr rando allikmets of columbia university who had already 
established an interest in applying these vectors to retinal diseases  
and specifically delivering the abca4 gene into a preclinical model  
of stargardt disease
we are privileged to work closely 
with experts in the field such as  
dr allikmets and are extremely 
grateful for the funding that came 
through the ffb and its trustees 
without their continued support 
and influence in addition to our 
strong partnership with sanofi  
we would certainly not have 
achieved what we have today  
we value our partnerships and  
our ocular collaborations are the 
perfect example of what can be 
achieved by working together
dr stuart naylor
chief scientific officer  
at oxford biomedica
oxford biomedica’s ocular collaborations
from bench to bedside 
dr stuart naylor
chief scientific officer at oxford 
biomedica and dr stephen rose  
chief research officer at the 
foundation fighting blindness oxford biomedica plc  annual report and accounts 2011 31
with great support from the ffb  
we were able to put together a very 
productive collaboration we have 
strong experience in genetics and 
preclinical models at columbia 
university and oxford biomedica 
provided us with the lentiviral 
vector expertise and platform 
technology working together  
i believe this group of people  
was the main reason for success 
everybody contributed what they 
knew best and altogether it has 
worked out beautifully
dr rando allikmets
columbia university
the foundation is proud to have 
played a pivotal partnering role  
in advancing these novel ocular 
therapies into clinical development 
we are delighted by the excellent 
reports coming from oxford 
biomedica’s ongoing clinical studies 
for retinal degenerations and are 
pleased to have worked so closely 
with the group throughout the 
stages of development to date such 
pioneering clinical development 
efforts hold great promise for saving 
and restoring the vision for millions 
of patients worldwide
dr stephen rose
chief research officer at the  
foundation fighting blindness
for a genetic disorder such as stargardt disease there are currently no 
treatments which try and tackle the root cause of the disease children  
are born with a mutated abca4 gene which leads to the degeneration  
of photoreceptors in the retina and vision loss our lentivector
®
 platform 
appeared to be wellsuited for treating stargardt disease and in fact it was  
the only available technology that could deliver the large abca4 genetic 
payload to photoreceptors we were impressed with dr allikmets’ work  
and having been given the opportunity to apply our technology to stargardt 
disease our relationship with dr allikmets and ffb quickly facilitated our 
interaction with key opinion leaders in the retinal research field importantly 
our relationships also helped to secure funding to prime an early stage 
preclinical ocular portfolio at oxford biomedica
in november 2003 the ffb agreed to fund preclinical proofofprinciple 
studies for retinostat
®
 in wet amd this was followed by an agreement with 
the national neurovision research institute nnri the translational research 
arm of ffb in october 2006 to fund the development of a portfolio of ocular 
gene therapy products with stargen
™
 as the lead product in stargardt disease 
this funding originally led by paul manning a director of the nnri was 
extended in february 2009 to support the continuing development of 
stargen
™
 following several academic publications which raised awareness 
and supported the lentivector
®
 platform and dr allikmets’ work we were 
delighted to secure a partnership with a large pharmaceutical development 
partner sanofi committed us50 million in april 2009 to bring retinostat
®
 
stargen
™
 and two other preclinical ocular gene therapies ushstat
®
  
for usher syndrome type 1b and encorstat
®
 for corneal graft rejection  
into phase iii clinical development
since april 2009 we have made outstanding progress in bringing these  
novel gene therapies to patients in november 2010 the us food and drug 
administration fda approved our investigational new drug ind application 
for retinostat
®
 which resulted in the initiation of the first us clinical study 
using our lentivector
®
 platform technology in january 2011 within 12 months 
the fda also approved the stargen
™
 and ushstat
®
 ind applications and the 
firstever gene therapy clinical trials in stargardt disease and usher syndrome 
type 1b are now underway
the initiation and development of three groundbreaking phase iii ocular 
gene therapy studies is not only a historic milestone for oxford biomedica  
and all those involved but is also of great significance to the field of 
ophthalmology – particularly in orphan indications such as stargardt disease 
and usher syndrome type 1b for which there are currently no approved 
treatments we are particularly excited by the future potential of our 
lentivector
®
 platform technology which could enable us to swap the genetic 
cargo whilst keeping the same manufacturing processes thereby creating 
multiple opportunities to apply our technology to other retinal dystrophies  
if we are successful with stargen
™
 and ushstat
®
 we should be primed  
and ready to go with the next corrective gene therapy approach
we continue to work closely with our current partners and clinicians 
academic institutions charitable organisations and leaders in the field  
with four products partnered with sanofi our glaucoma collaboration with 
mayo clinic and the potential to explore new opportunities we remain 
extremely encouraged by the potential in our ocular portfolio
dr stuart naylor
chief scientific officer financial highlights
1
12
10
08
06
04
02
0
2010
revenue £m
•   o cular
•  primeboost
•  other
2011
10
08
06
04
02
0
2011
research and development £m
•   ext er nal
•  internal
•  amortisation
•  impairment
2010
12
1
08
06
04
02
0
02
04
06
08
1
2010
cost of sales £m
•    r o y alties
•  license credit
2011
oxford biomedica plc  annual report and accounts 2011 32
£20m
fundraising of £200 million  
before expenses completed  
on 10 january 2011
£143m
net cash
3
 of £143 million 
2010 £123 million
£178m
research and development 2011  
£17 8 million 2010 £199 million  
including £31 million exceptional  
impairment loss 2010 £39 million  
impairment loss
£77m
revenue 2011 £7 7 million  
2010 £112 million
£126m
net loss after exceptional items 
of £126 million 2010 £103 million
£165m
net cash burn
2
 of £165 million 
2010 net cash burn £130 million
1 audited financial results
2  net cash used ingenerated from operating 
activities plus sales and purchases of noncurrent 
assets and interest received
3  cash cash equivalents and available for  
sale investments oxford biomedica plc   annual report and accounts 2011 33
cash burn in 2011 was £165 million compared to £130 million in 2010 and 
the total of cash cash equivalents and current financial assets at 31 december 
2011 amounted to £143 million 2010 £123 million
revenue in 2011 of £77 million was £34 million lower than in 2010 primarily 
because rd funding from sanofi for the ocular programme was reduced  
as the external programme costs were lower in 2011 by £27m revenue was 
further reduced in 2011 compared with 2010 because 2010 included £06 million 
oneoff license income cost of sales in 2011 was £06 million compared  
with £06 million credit in 2010 which was due to the release of a provision 
nonexceptional operating expenses of £185 million were £13 million lower 
than in 2010 the lower ocular programme costs were offset by £10m start
up and commissioning costs at the manufacturing facility that was acquired 
in february 2011 there was a further £31 million exceptional impairment  
of intangible assets in 2011 2010 £39 million as the divestment of hi8
® 
mel  
did not secure a purchaser the net loss after exceptional items in 2011 was 
£126 million compared with £103 million in 2010
revenue £7 718000 2010 £11153000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
ocular collaboration revenue 7316 10286 6224  
trovax
®
 collaboration –  
nonexceptional revenue   2609 18064 6970
primeboost technology  
licence revenue  648   
technology licences  
 other revenue 402 219 198 330 249
total nonexceptional  
revenue 7718 11153 9031 18394 7219
trovax
®
 collaboration –  
exceptional revenue   10089  
total revenue 7 718 11153 19120 18394 7 219
the bulk of the group’s revenue in 2011 is generated by the ocular collabo
ration with sanofi which was initiated in april 2009 the collaboration has two 
elements a nonrefundable upfront payment of us26 million £166 million 
which was received in 2009 and rd funding of up to us24 million which  
is receivable over the current phase of the collaboration revenue recognised  
in 2011 for this collaboration comprised £47 million in respect of the upfront 
payment 2010 £47 million and £27 million of rd funding 2010  
£56 million deferred income of £46 million is expected to be recognised  
in 2012 and 2013 the rd funding component was lower in 2011 because 
external programme costs were lower than in 2010 revenue was further 
reduced in 2011 because there was a oneoff £06 million receipt in 2010  
in respect of the primeboost technology license with emergent biosolutions
cost of sales £555000 2010 credit of £593000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
royalty payable on third  
party licenses
nonexceptional cost 
credit of sales 555 593 90 1295 449
exceptional cost of sales   527  
total cost of sales 555 593 437 1295 449
cost of sales is the royalty payable to third party licensors attributable to 
upfront and milestone payments that are recognised as revenue in 2010 a 
provision of £11 million was released following renegotiation of the licence 
with cancer research technology crt covering the 5t4 cancer antigen 
dependent on certain future commercial milestones that relate to the 
partnering development and approval of trovax
®
 up to £11 million could 
become payable to crt a further writeback of £05 million was made  
in respect of this licence in 2009 recognised within nonexceptional cost  
of sales following a reduction in the estimated royalty rate 
2011 was a year of significant 
operational progress for oxford 
biomedica and included the raising 
of £20 million before expenses  
in a placing and open offer which 
closed on 10 january 2011 and the 
purchase and commissioning of  
a manufacturing facility in oxford
tim watts
chief financial officer
financial review
  oxford biomedica plc   annual report and accounts 2011 34
operating expenses before exceptional items £18521000  
2010 £19850000 
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
nonexceptional research and  
development costs  14710 15931 14899 22482 22142
nonexceptional  
administrative expenses  3811 3919 6056 3840 4282
total nonexceptional  
operating expenses 18521 19850 20955 26322 26424
nonexceptional operating expenses were £13 million lower than 2010  
at £185 million principally due to lower rd costs
research  development costs preexceptional £14710000  
2010 £15931000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
external preclinical  
 clinical costs 4766 7077 6328 13397 11833
inhouse rd costs uk 9128 7752 8138 8660 9848
inhouse rd costs usa 366 403 433 425 461
amortisation of intangibles 450 699   
total nonexceptional  
research  development  
costs 14710 15931 14899 22482 22142
rd costs comprise external costs preclinical studies gmp manufacturing 
regulatory costs and clinical trials inhouse expenditure staff rd con
sumables intellectual property facilities and depreciation of rd assets  
and amortisation of intangibles external preclinical and clinical costs in 2011  
were lower than 2010 by £23 million primarily due to lower ocular programme 
costs in 2011 but this was offset by £14 million higher inhouse uk rd due 
mainly to the startup and commissioning costs of the manufacturing facility 
which was acquired in february 2011 external clinical and preclinical costs 
from 2006 to 2008 were high due to trovax
®
 development particularly the 
trist study in 2009 and 2010 the balance of expenditure shifted away from 
trovax
®
 to prosavin
®
 and the ocular programme which is funded by sanofi 
administrative expenses preexceptional £3811000 2010 £3919000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
administrative staff costs 2072 1977 2815 2016 1958
legal costs  201  270 1411 867 852
other administrative expenses 1538 1672 1830 957 1472
total nonexceptional  
administrative expenses 3811 3919 6056 3840 4282
nonexceptional administrative expenses of £38 million in 2011 were slightly 
lower than 2010 due mainly to lower employment costs including the charge 
for share options legal costs charged to the income statement reduced from 
£14 million in 2009 to £03 million in 2010 largely due to the costs in 2009  
of defending patent litigation brought by bavarian nordic other administrative 
expenses in 2008 and 2009 were distorted by foreign exchange gains 2008 
and losses 2009
financial review
  oxford biomedica plc   annual report and accounts 2011 35
headcount 
 2011 2010 2009 2008 2007 
 number number number number number
rd headcount year end 87 65 53 64 69
administrative headcount  
year end 11 10 12 12 13
total headcount at year end 98 75 65 76 82
rd headcount  
average for the year 76 62 58 73 68
administrative headcount  
average for the year 10 11 11 12 12
total headcount  
average for the year 86 73 69 85 80
during 2011 staff numbers increased driven mainly by the need to staff the 
new manufacturing facility since the year end management has conducted  
a review of staffing needs following which headcount is being reduced by  
16 including the closure of the us office
exceptional operating expenses £3136000 2010 £3949000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
research and  
development costs 
arising on termination  
of the trovax
®
 collaboration    676  
provision for trist study  
closeout   2202  
writeoff re planned quasar  
clinical trial   514  
impairment of intangible assets 3136 3949  4561 
total exceptional research  
and development costs 3136 3949 3392 4561 
administrative expenses 
arising on termination  
of the trovax
®
 collaboration    169  
restructuring costs     335
total exceptional  
administrative expenses   169  335
total exceptional  
operating expenses 3136 3949 3561 4561 335
an impairment charge of £39 million relating to hi8
® 
mel and two smaller 
technology assets was recognised in 2010 in 2011 at the conclusion of a 
divestment process which did not secure a partner for hi8
® 
mel the residual 
carrying value of £31 million was written off exceptional costs in 2009 related 
to the termination of the trovax
®
 collaboration with sanofi and the revision  
of the development strategy for trovax
®
  oxford biomedica plc   annual report and accounts 2011 36
financial review
finance income £136000 2010 £207 000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
interest receivable – bank 144 213 642 1661 2113
other interest receivable  9 27 1 4
interest payable –  
discount on provisions 8 14 10 19 30
other interest payable   1 23 5 
net finance income 136 207 636 1638 2087
     
average balance on deposit  
in the year 11380 16375 24549 28941 37731
average rate of interest  
on deposits  075 129 261 573 558
the group places its cash in bank deposits for periods of up to 12 months  
and generates interest on those deposits the maturity profile of deposits is 
intended to match planned expenditure lower net interest receivable in 2011 
reflects lower interest rates and a lower amount of funds on deposit the 
dramatic fall in market rates from the end of 2008 had a fullyear effect in 2010 
when the average return on deposits was just 129 the group has no debt 
but is recognising as a finance expense the discount on a lease provision  
and a dilapidation provision 
tax credit £1671000 2010 £1514000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
uk rd tax credit –  
current year 1641 1331 1650 2119 2526
uk rd tax credit –  
prior year adjustment 87 239  72 
overseas tax payable –  
current year  58 70 61 59 60
overseas tax payable –  
prior year adjustment 1 14 10 4 14
net tax credit 1671 1514 1579 1992 2452
     
debtor for rd tax credit 1641 1331 2269 2119 2623
oxford biomedica’s uk operating subsidiary is entitled to claim a rd tax  
credit which is payable in cash to the company the credit is based on  
certain eligible expenses to which a markup of 100 75 before 1 april 
2011 and a tax rate of 125 14 before 1 april 2011 are applied restricted 
where appropriate to the lower of uk payroll tax income tax and national 
insurance and corporation tax losses the reimbursement of rd costs by 
sanofi reduces the net eligible expenses for rd credit as part of its policy  
to support smalland mediumsized enterprises smes the government  
has increased the mark up from 75 to 100 from 1 april 2011 and has stated 
that it intends to increase it further to 125 from 1 april 2012 the increase  
in the mark up from 1 april 2011 has resulted in an increased tax credit in 2011 
compared with 2010 the group’s us subsidiary supplies services to the uk 
subsidiary subject to a fixed markup interest is charged by the subsidiary  
at statutory rates for an intercompany loan this generates a low level of 
taxable income in the usa  oxford biomedica plc   annual report and accounts 2011 37
loss for the financial year before exceptional items £9495000  
2010 £6341000
loss for the financial year including exceptional items £12631000  
2010 £10290000
before exceptional items the higher net loss in 2011 is attributable principally 
to the £11 million credit in cost of sales in 2010 and the £06 million license 
income in 2010 from emergent biosolutions neither of which were repeated 
in 2011 and the £10 million startup and commissioning costs of the new 
manufacturing facility 
intangible assets £3106000 2010 £6683000
intangible assets at 31 december 2011 were £36 million lower than 2010  
due to the recognition of an impairment charge classified as an exceptional 
research and development cost of £31 million and amortisation classified  
as a nonexceptional research and development cost of £05 million
property plant and equipment £4213000 2010 £580000
property plant and equipment is £36 million greater in 2011 than 2010 because 
of the purchase and refurbishment of the new manufacturing facility 
trade and other receivables £2800000 2010 £4795000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
trade receivables 154 394 88 106 91
accrued income 33 1366 1925  34
other costs recoverable  
from sanofi    3913 109
other receivables 1114 217 448 814 1434
prepaid clinical trial expenses 493 368 70 790 969
prepaid royalty on deferred  
income  992 1465 870 1330
prepaid costs of share issues  777   
other prepayments  1006 681 632 812 705
total trade and other  
receivables 2800 4795 4628 7305 705
trade and other receivables at 31 december 2011 were significantly lower 
than at 31 december 2010 because the 2010 balance included £07 million 
prepaid costs of the january 2011 share issue as well as £14 million  
2011 £33000 accrued income in respect of rd funding recoverable  
from sanofi oxford biomedica plc   annual report and accounts 2011 38
financial review
trade and other payables £3226000 2010 £3923000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
trade payables 1200 1277 1965 3298 2948
accruals – share issue costs  525   
accruals – other 1865 1982 5400 7124 6191
other taxation and  
social security  161 139 304 136 418
total trade and  
other payables 3226 3923 7 669 10558 9557
trade and other payables reduced in 2011 because the 2010 balance included 
accrued share issue costs which had been incurred in 2010 ahead of the 
january 2011 share issue
deferred income £4556000 2010 £9402000
 2011 2010 2009 2008 2007 
 £’000 £’000 £’000 £’000 £’000
ocular deferred income  
current 4262 5121 4665  
ocular deferred income  
noncurrent 170 4201 9024  
other deferred income current 124 80 76 119 90
trovax
®
 deferred income     8324 18823
total deferred income 4556 9402 13765 8443 18913
deferred revenue reflects payments received under licensing agreements that 
exceed the amount of recognised revenue the initial receipt in 2009 from the 
ocular collaboration with sanofi is being recognised as revenue over a period 
of 42 to 51 months  oxford biomedica plc   annual report and accounts 2011 39
share issues
at the start of 2011 the company had 544875557 shares in issue  
on 10 jan uary 2011 the company issued 400000000 new ordinary shares  
in a placing and open offer raising £200 million before expenses expenses  
of £08 million were incurred during 2010 in respect of this share issue 
included in prepayments at 31 december 2010 and charged to the share 
premium account in 2011 further costs of £08 million were incurred  
in closing the share issue in 2011 at 31 december 2011 the company  
had 944875557 shares in issue 
cash cash equivalents and available for sale investments £14335000 
2010 £12256000 
cash burn £16488000 2010 £13038000
the total of cash cash equivalents and available for sale investments at  
the end of 2011 was £143 million cash burn is the aggregate of cash from 
operating activities proceeds of sale of property plant and equipment and 
fixed asset investments purchases of property plant and equipment and 
intangible assets and interest received it was £165 million in 2011 compared 
to £130 million in 2010 cash used in operations in 2011 was £143 million 
£10 million less than in 2010 but the 2011 tax credit received was £11 million 
lower than in 2010 and 2011 also included the £31 million purchase and 
refurbishment of the manufacturing site
financial outlook
there has been good operational progress for oxford biomedica throughout 
2011 and in particular the ocular programmes in collaboration with sanofi  
are progressing well we have successfully commissioned the proprietary 
manufacturing facility to support our core programmes subject to receiving 
mhra approval this facility should generate significant cost savings by 
increasing operational and financial efficiencies and provides the opportunity 
for the company to become the lentivector
®
 platform supplier of choice  
for its current and future partners
we have sufficient financial resources to fund the business until q1 2013 
however this does not take into account potential milestone payments should 
sanofi choose to exercise its options for the ocular products during 2012 nor 
does it factor in potential revenue from partnering deals for prosavin
®
 and 
trovax
®
 our aim is to ensure that oxford biomedica is an efficient focused 
and resilient organisation and until we reach sustainable profitability we will 
continue to strike a balance between growing the company whilst also being 
careful with costs having recently reduced the company’s cost base oxford 
biomedica has tight fiscal controls in place we continue to seek to leverage 
the value of our intellectual property through strategic partnerships and our 
growth and success will also come from future corporate activity we also 
continue to review our options in terms of how best to finance the company 
to allow us to achieve our strategic aims oxford biomedica plc   annual report and accounts 2011 40
01 nick rodgers
nonexecutive chairman
nick rodgers age 53 was appointed 
to oxford biomedica’s board in march 
2004 and was appointed chairman  
in may 2011 mr rodgers is a former 
investment banker with considerable 
experience in the life sciences sector 
he is now chief executive of ipso 
ventures plc an intellectual property 
commercialisation business having 
been head of life sciences and 
jointhead of corporate finance  
at evolution beeson gregory until 
december 2003 mr rodgers joined 
beeson gregory in 1989 from 
accountants ernst  young having 
also worked in the listing department 
of the london stock exchange  
he is chairman of oxford biomedica’s 
audit and nomination committees
02 john dawson
chief executive officer
john dawson age 52 joined oxford 
biomedica’s board as a nonexecutive 
director on 1 august 2008 he was 
then appointed chief executive officer 
on 13 october 2008 having served  
as acting chief executive officer since 
29 august 2008 from 1996 to 2007 
mr dawson held senior management 
positions in the european operations 
of cephalon inc including from 2005 
a management board position as 
chief financial officer and head of 
business development europe in his 
time at cephalon he led many of the 
deals that built the european business 
to over 1000 people taking the 
business from having no sales in 1998 
to revenue of several hundred million 
us dollars in 2005 mr dawson led 
the us360 million acquisition of 
zeneus by cephalon between 1991 
and 1996 he was director of finance 
and administration of serono 
laboratories uk limited
the board of directors
05
03
06
04
01
02
07 oxford biomedica plc   annual report and accounts 2011 41
03 tim watts
chief financial officer
tim watts age 54 joined oxford 
biomedica and the board in  
february 2012 he has over 30 years’ 
experience in leading multinational 
and entre preneurial businesses  
mr watts qualified as a chartered 
accountant beginning his career with 
coopers  lybrand before moving to 
h j heinz the food producer in 1985 
he joined ici initially in the corporate 
headquarters and from 1990 in the 
pharmaceuticals division eventually 
rising to be finance director of the 
zeneca pharmaceuticals business 
following the merger of astra and 
zeneca mr watts became group 
financial controller of astrazeneca 
plc in 2001 in 2007 he left 
astrazeneca to become chief 
financial officer at archimedes 
pharma mr watts has a proven track 
record in the industry including 
managing corporate transactions 
ma activity fundraising and  
strategic implementation
04 dr stuart naylor
chief scientific officer
dr stuart naylor age 49 joined 
oxford biomedica in 1997 and  
was appointed to the board in july  
2008 he established an international 
reputation at two world class  
cancer institutes the imperial cancer 
research fund and the institute of 
cancer research dr naylor’s career 
has covered many aspects of tumour 
biology from its molecular basis to 
the clinic he has published numerous 
primary and review articles notably  
in the field of cytokine research and 
brings with him an extensive network 
of collaborators in many aspects of 
basic research and clinical oncology
05 peter nolan
executive director and senior vice
president commercial development
peter nolan age 59 was appointed  
to oxford biomedica’s board in may 
2002 having been a senior member 
of the company since its foundation 
he is also a director of the uk 
bioindustry association and is a  
past chairman of the oxfordshire 
bioscience network prior to joining 
oxford biomedica mr nolan served  
as head of the biotechnology unit  
at the uk department of trade  
industry for eight years in that role  
he was responsible for establishing 
and managing complex collaborative 
research programmes involving 
industry research councils and other 
government departments previously 
mr nolan held senior positions in the 
laboratory of the government 
chemist and also the metropolitan 
police laboratory in london where 
he was a senior forensic scientist
06 dr andrew heath
deputy chairman and
senior independent director
dr andrew heath age 64 was 
appointed to oxford biomedica’s 
board in january 2010 and was 
appointed deputy chairman and 
senior independent director in may 
2011 dr heath is a healthcare and 
biopharmaceutical executive with 
indepth knowledge of us and uk 
capital markets and international 
experience in marketing and sales 
r  d and business development  
he was chief executive officer  
of protherics plc from 1997 to 2008 
taking the company from 30 to  
350 staff and managing its eventual 
acquisition by btg for £220 million 
prior to this dr heath was president 
and chief executive officer of 
aerogen inc and previously held 
senior positions at astra ab and  
astra usa including vice president 
marketing  sales and at glaxo 
sweden as associate medical director 
he is currently a nonexecutive 
director of xl techgroup inc  
anew inc pioneer technology inc 
and is a director of the bioindustry 
association
07  dr paul blake
nonexecutive director
dr paul blake age 63 was appointed 
to oxford biomedica’s board in 
january 2010 dr blake has over 30 
years’ international pharmaceutical
biotech experience and is currently 
senior vice president and chief 
medical officer of æterna zentaris 
inc a global biopharmaceutical 
company focused on oncology  
and endrocrine therapy from 2001  
to 2006 he held senior management 
positions at cephalon inc including 
executive vice president worldwide 
medical  regulatory operations from 
2005 dr blake’s previous positions 
include senior vice president and 
medical director clinical research 
and development at smithkline 
beecham pharmaceuticals he gained 
his medical degree from the london 
university royal free hospital  
dr blake is chairman of oxford 
biomedica’s remuneration committee oxford biomedica plc   annual report and accounts 2011 42
principal risks and uncertainties
risk assessment and evaluation is an integral  
part of oxford biomedica’s planning most of the  
company’s risks and uncertainties are common to  
all developmentstage biopharmaceutical companies 
where possible the company’s strategy is designed  
to manage and mitigate these issues the board has 
overall responsibility for the group’s systems of risk 
management and internal control the management 
structure of the group allows the executive directors 
to be personally involved in all material aspects of risk 
assessment management and mitigation the board 
members have relevant qualification and experience 
and they have access to external resources where 
required the board meets regularly and frequently 
enough for the full board to stay informed in a timely 
manner and to oversee this activity the following are 
the principal risks and uncertainties facing the business 
intellectual property and patent protection risk
oxford biomedica’s commercial success depends 
amongst other things on maintaining proprietary rights 
to its products and technologies and the board gives high 
priority to the strategic management of the company’s 
intellectual property portfolio there can be no assurance 
that oxford biomedica’s products and technologies  
are adequately protected by intellectual property if  
procee dings are initiated against the company’s patents 
the defence of such rights could involve substantial  
costs and an uncertain outcome 
thirdparty patents may emerge containing claims that 
impact oxford biomedica’s freedom to operate there can 
be no assurance that the company will be able to obtain 
licences to these patents at reasonable cost if at all or be 
able to develop or obtain alternative technology oxford 
biomedica aims to preserve the confidentiality of its 
technology where copyright design right andor “know 
how” protect the company’s products or technology 
there can be no assurance that a competitor or potential 
competitor will not independently develop the same 
product or technology 
rights of ownership over and rights to licence and  
use intellectual property depend on a number of factors 
including the circumstances under which the intellectual 
property was created and the provisions of any agreements 
covering such intellectual property there can be no 
assurance that changes to the terms within license 
agreements will not affect the entitlement of the company 
to the relevant intellectual property or to license the 
relevant intellectual property from others
preclinical and clinical development
oxford biomedica currently has five products in active 
clinical trials prosavin
®
 trovax
®
 retinostat
®
 stargen
™ 
and ushstat
®
 results of preclinical studies are not 
necessarily indicative of results that may be obtained  
in clinical trials the projected timetables for continued 
development of the technologies and related product 
candidates by the company andor its partners or 
licensees may be otherwise subject to delay or suspension 
there is a risk that the failure of any one product 
candidate could have a significant and sustained  
adverse impact on the company’s share price 
furthermore there is a risk that the failure of one product 
candidate in clinical development could have an adverse 
effect on the development of other product candidates  
or on the company’s ability to enter into collaborations in 
respect of product candidates or to raise additional funds
safety and regulatory risk
the clinical development and marketing approval of 
oxford biomedica’s product candidates are regulated by 
healthcare regulatory agencies such as the fda ema 
afssaps and mhra in respective territories the company 
must conduct preclinical studies and clinical trials for 
each of its product candidates to demonstrate safety and 
efficacy however there can be no assurance that the  
data collected will be sufficient to satisfy the relevant 
regulatory authorities in addition the continuation of a 
particular study after review by an independent data 
safety monitoring board or review body does not 
necessarily indicate that all clinical trials will ultimately be 
successfully completed
during the development stage regulatory reviews of 
clinical trial applications or amendments can prolong our 
anticipated development timelines similarly there can be 
no assurance of gaining the necessary marketing approvals 
to commercialise our products each regulatory authority 
may impose its own restrictions on the product’s use  
or may require additional data before granting approval
safety or efficacy issues may arise at any stage of the drug 
development process adverse or inconclusive results 
from preclinical testing or clinical trials may substantially 
delay or halt the development of oxford biomedica’s 
product candidates consequently affecting the company’s 
timelines for profitability if regulatory approval is obtained 
the product and manufacturer will be subject to continual 
review and there can be no assurance that such an 
approval will not be withdrawn or restricted 
collaboration and thirdparty risk
collaborations and licensing are an important component 
of oxford biomedica’s strategy to realise value and manage 
risk the company is dependent on the successful 
outcome of relationships with outside parties as part of 
research development manufacture commercialisation 
and marketing of products there can be no assurance 
that the company’s existing relationships will not be 
terminated or require renegotiation for reasons that may 
be unrelated to the potential of the programme
circumstances may also arise where the failure  
by collaborators and third parties such as contract 
manufacturers to perform their obligations in accordance 
with our agreements could delay or halt entirely 
development production or commercialisation of our 
products or adversely impact our cash flows currently 
the company’s most important collaborators are sanofi 
and pfizer if the relationship with either of these parties  
is adversely affected oxford biomedica’s development 
programme may also be adversely impacted  oxford biomedica plc   annual report and accounts 2011 43
pharmaceutical pricing and government risk
the ability of oxford biomedica and its partners  
to commercialise their products may depend on the 
availability of reimbursement from government health 
administration authorities private health coverage 
insurers and other organisations there is no assurance 
that adequate reimbursement will be available or that 
satisfactory price levels will be reached 
if satisfactory pricing cannot be obtained the company’s 
future profitability would be adversely affected in addition 
there is increasing pressure by certain governments to 
contain healthcare costs by limiting both coverage and 
the level of reimbursement based on preclinical studies 
oxford biomedica’s lentivector
®
 platform product 
candidates have the unique potential to provide permanent 
therapeutic benefit from a single administration the 
pricing of these therapies will depend on assessments  
of their costbenefit and cost effectiveness
all governments reserve the right to amend their policies 
in relation to the full partial or nonreimbursement of  
the price of pharmaceutical products these policies are 
subject to change at any time in any country and can 
impact profoundly upon the pharmaceutical industry  
as a whole or in part
competition regulation and risk
oxford biomedica is subject to uk and eu competition 
law which may impose fines on companies which  
enter into agreements that restrict competition in the  
eu eg licenses or patents which restrict competition  
the company’s competitors and potential competitors 
include major pharmaceutical and biotechnology 
companies who may have superior research and 
development capabilities drugs manufacturing  
capability or marketing expertise 
through the company’s collaborative strategy oxford 
biomedica aims to work with leading companies in 
respective therapeutic areas however there can be  
no assurance that competitors will not succeed in 
establishing superior proprietary positions and developing 
products and technologies that are more effective  
or economic than the company’s
financial risk
the company is of the opinion that taking into account 
existing cash balances the group has sufficient working 
capital for its present requirements oxford biomedica’s 
future capital requirements to support operating activities 
and to implement oxford biomedica’s business strategy 
are not yet known and will depend inter alia on the 
amount of new commercial funding that it can generate
oxford biomedica’s strategy is to add value to its priority 
inhouse programmes by investing in further development 
the company aims to offset operating costs through 
partnering and other licensing income under the terms 
of the company’s current collaborations the receipt  
of further income is dependent on the achievement of 
specific milestones related to development regulatory  
or commercial progress similarly the timing and 
magnitude of income from new collaborations  
is inherently unpredictable 
it is possible that the company may require additional 
financing for the future operation of its business including 
further equity funding as appropriate where dilution to 
the then existing shareholders may result the level and 
timing of future expenditure will depend on a number  
of factors many of which are currently outside oxford 
biomedica’s control there is no certainty that adequate 
financial resources will be available on a timely basis
staff risk
while oxford biomedica has employment contracts with 
all of its personnel the retention of their services cannot 
be guaranteed recruiting and retaining key management 
and scientific personnel is critical to the company’s 
success the loss of those employees could weaken 
oxford biomedica’s scientific and management capabilities 
resulting in delays in the development of its drugs and 
impacting negatively on the company’s business
manufacturing risk
oxford biomedica’s product candidates use specialised 
manufacturing processes for which there are few suitable 
manufacturing contractors there can be no assurance 
that the company’s current contractors will continue  
to make capacity available at economic prices or that 
suitable new contractors will enter the market oxford 
biomedica has taken steps to actively mitigate this risk  
by investing in its own manufacturing capability via  
the acquisition of a uk manufacturing facility in february 
2011 there is no guarantee that the inhouse capability 
that the company is seeking to commission will be  
able to supply material for clinical use on a timely  
and cost effective basis 
manufacturing processes that are effective and practical  
at the small scale required by the early stage of clinical 
development may not be appropriate at the higher scale 
required for later stages of clinical development or for 
commercial supply there can be no assurance that 
oxford biomedica will be able to adapt current processes 
or develop new processes suitable for the scale required 
by later stages of clinical development or commercial 
supply in a timely or costeffective manner nor that the 
inhouse facility or external contractors will be able to 
provide sufficient manufacturing capacity when required
gene therapy risk
no genebased medicines are currently approved for  
sale in the usa or eu the commercial success of oxford 
biomedica’s products will depend in part on acceptance 
by the medical community and the public furthermore 
specific regulatory requirements over and above those 
imposed on other products apply to gene therapy and 
there can be no assurance that additional requirements 
will not be imposed in the future this may increase  
the cost and time required for successful development  
of the company’s products oxford biomedica plc   annual report and accounts 2011 44
corporate governance
application of the principles in the uk  
corporate governance code the “code”
the policy of the board is to manage the affairs of  
oxford biomedica to the highest standards of corporate 
governance and in accordance with the principles of 
good governance and the code of best practice as set  
out in the code a copy of the code is available from 
wwwfrcorguk  
the board considers that it has complied throughout  
the year with the provisions of the code unless otherwise 
indicated below 
compliance with the provisions of the code
the board
oxford biomedica is led and controlled by a board 
consisting of a chairman two nonexecutive directors 
and four executive directors between january 2011 and 
may 2011 there had been a total of four nonexecutive 
directors on 5 may 2011 dr alan kingsman chairman 
left the board at which time nick rodgers deputy 
chairman and senior independent director became 
chairman on 24 may 2011 dr alex lewis nonexecutive 
director left the board to take up a management position 
with the company as director of corporate activities and 
strategy on 9 february 2012 andrew wood stepped 
down from the board and was replaced on that date as 
chief financial officer and company secretary by tim 
watts as set out in their biographies on pages 40 to 41 
the directors have significant experience of the 
management and development of a biopharmaceutical 
group and of pharmaceutical research and the new  
drug development process there is a clear division of 
responsibilities set out in writing between the chairman 
and chief executive officer the board considers that the 
nonexecutive directors are independent of management 
all directors have access to advice and services of the 
company secretary who is responsible to the board for 
ensuring that board procedures are complied with the 
appointment and removal of the company secretary is a 
matter for the board as a whole to consider the chairman 
has no significant external commercial commitments  
that would impact the performance of his duties 
provision a31 of the code recommends that the 
chairman should meet the independence criteria  
on appointment and that a chief executive officer  
should subsequently be appointed as chairman  
this recommendation is complied with by the present 
chairman nick rodgers who was appointed on 5 may 
2011 the previous arrangement did not meet the 
recommendation as dr alan kingsman who was 
chairman until 5 may 2011 had previously been the  
chief executive officer dr alan kingsman also held share 
options and long term incentive plan awards that had 
been granted when he held executive positions which 
was contrary to the requirements for independence 
notwithstanding this provision b12 of the code which 
recommends that a small company should have at least 
two independent nonexecutive directors has been fully 
met throughout the year 
board meetings
the board meets regularly and at least eight times per 
year with meeting dates agreed for each year in advance 
there is a formal schedule of matters reserved to the 
board for its decision the schedule covers senior 
appointments business strategy and budgets substantial 
transactions contracts and commitments financing 
treasury and risk policies and the approval of certain 
documents and announcements including the annual 
report there is frequent contact between executive and 
nonexecutive directors each director is provided with an 
appropriate induction on appointment and is supplied on 
a timely basis with financial and operational information 
sufficient for the board to discharge its duties all directors 
have access as required to independent professional 
advice during 2011 there were 10 board meetings  
the attendance of individual directors at board meetings 
was as follows
  number maximum 
director  attended  possible
dr alan kingsman
 1
  1 3
dr paul blake  10 10
dr andrew heath  10 10
dr alex lewis
 2
  4 4
nick rodgers  10 10
john dawson  10 10
dr stuart naylor  10 10
peter nolan  9 10
andrew wood
 3
  9 10
1 dr alan kingsman resigned from the board on 5 may 2011
2 dr alex lewis resigned from the board on 24 may 2011
3 andrew wood resigned from the board on 9 february 2012
as required the chairman holds meetings with  
nonexecutive directors without the executive directors  
in attendance oxford biomedica plc   annual report and accounts 2011 45
board committees
as appropriate the board has delegated certain 
responsibilities to board committees which operate 
within defined terms of reference and constitution  
there is a remuneration committee the report and 
membership of which is set out on pages 53 to 58  
the remuneration committee met five times in 2011  
all meetings were attended by all committee members 
audit committee
there is also an audit committee which comprises two 
nonexecutive directors nick rodgers chairman and  
dr andrew heath up to 24 may 2011 dr alex lewis was 
also a member of the committee the board considers 
that both members of the audit committee possess 
recent and relevant financial experience the audit 
committee has written terms of reference which have 
been published on the company’s website it monitors 
the integrity of the financial statements of oxford 
biomedica and any formal announcements relating  
to the company’s financial performance reviewing 
significant financial reporting judgements contained  
in them it reviews internal financial controls and  
the internal control and risk management systems  
it makes recommendations to the board for it to put  
to shareholders for their approval in general meeting  
in relation to the appointment reappointment and 
removal of the external auditors and approves  
the remuneration and terms of engagement  
of the external auditors 
provision c31 of the code states that the company 
chairman should not chair the audit committee  
when the composition of board and its committees  
was reorganised in may 2011 nick rodgers became 
company chairman and retained on a pro tem basis  
the chair of the audit committee the board recognises 
that this arrangement is not satisfactory and in the  
longer term the intention is to appoint an appropriately 
qualified nonexecutive director who could chair  
the audit committee 
provision c35 of the code states that the audit committee 
should review the effectiveness of the company’s internal 
audit function due to the small size of the company  
it has not been considered necessary to have an internal 
audit function the audit committee regularly at least 
once per year reviews the need for internal audit
pricewaterhousecoopers llp have been auditors to the 
company and the group since 1997  the audit committee 
regularly reviews the relationship with the auditors and 
remains satisfied with their effectiveness and that they 
remain independent accordingly it has not considered  
it necessary to date to require the firm to tender for the 
audit work there are no contractual obligations restricting 
the company’s choice of external auditor the incumbent 
independent auditors continue to operate procedures  
to safeguard against the possibility that their objectivity 
and independence could be compromised this includes 
the use of a quality review partner use of a technical 
review board where appropriate and annual 
independence procedures including confirmations by  
all staff the auditors report to the audit committee on 
matters including independence and nonaudit fees on 
an annual basis in addition the role of the audit partner  
is rotated on a periodic basis the audit committee 
reviews and monitors the external auditors’ independence 
and objectivity and the effectiveness of the audit process 
taking into consideration relevant uk professional and 
regulatory requirements the audit committee is advised 
of and approves all nonaudit services provided by the 
company’s auditors as part of this approval process  
the audit committee ensures that the provision of non
audit services will not impact the auditors’ objectivity  
and independence it reports to the board as necessary 
identifying matters in respect of which it considers  
that action or improvement is needed making 
recommendations as to the steps to be taken 
oxford biomedica has a public interest disclosure policy 
and the audit committee is responsible for reviewing 
arrangements by which staff may raise concerns about 
possible improprieties at the committee’s invitation or 
request the chief executive officer and other directors 
may attend meetings of the audit committee the audit 
committee met twice in 2011 with the chief financial 
officer present at the committee’s invitation all meetings 
were attended by the full committee 
nomination committee
the nomination committee leads the process for  
making appointments to the board and comprises the 
nonexecutive directors and the company chairman 
who is chairman of the nomination committee  
the nomination committee did not meet in 2011 oxford biomedica plc   annual report and accounts 2011 46
corporate governance
retirement of directors
in accordance with the articles of association at each 
annual meeting any director who was appointed after the 
last annual general meeting or has served for three years 
and one third of the other directors or if their number  
is not a multiple of three the number nearest to but  
not exceeding one third retire from office by rotation 
review of performance
provision b6 of the code requires an annual review  
of the performance of the board the committees and the 
individual directors during 2011 a comprehensive review 
of the executive directors and senior management was 
carried out in conjunction with rsa consulting limited 
an organisation that is independent of oxford biomedica 
in july 2011 the board carried out a wide ranging review 
of strategy and management processes including the 
effectiveness of the board the chairman and senior 
independent director monitored board performance  
and maintained their review of the performance of the 
committees and the individual directors throughout 2011 
they considered the performance satisfactory at least 
once per year the nonexecutive directors meet under 
the leadership of the senior independent director to 
appraise the chairman’s performance
management committees
the board retains overall responsibility for and control  
of the company management is conducted by the  
chief executive officer and the executive directors who 
together with other senior managers form the senior 
management team executive directors sit on the 
following committees and management groups the 
senior management group the executive research group  
the clinical development group the safety committee  
the commercial development committee the quality 
committee and the internal patent group by this means  
a direct and ongoing link exists between the determination 
of strategy by the board and the execution of the 
company’s policies by management and employees
relations with shareholders
we attach a high priority to effective communication  
with both private and institutional shareholders the 
annual report contains a detailed business review and a 
description of our candidate products and of our research 
and development portfolio an interim business review  
is also provided with the halfyear report sent to  
share holders with these documents and the company’s  
press releases we seek to present a balanced and  
under standable assessment of oxford biomedica’s position 
and prospects our website wwwoxfordbiomedicacouk 
provides extensive other information about the company 
the annual general meeting agm is the principal forum  
for dialogue with private shareholders a business 
presentation is made by the chief executive officer and 
there is an opportunity for shareholders to put questions 
to the directors at the agm the directors’ service 
contracts or letters of appointment are available  
for inspection 
we maintain regular contact with institutional share
holders through a programme of onetoone visits and 
briefings the chairman and senior independent director 
have contact with a range of major shareholders to  
listen to their views in order to help develop a balanced 
understanding of their views and concerns in addition 
the senior independent director is available to 
shareholders if contact through the normal channels  
is inappropriate or has failed to resolve concerns 
internal control
the directors are responsible for oxford biomedica’s 
system of internal control and for reviewing its 
effectiveness such a system is designed to manage 
rather than eliminate the risk of failure to achieve 
business objectives and can only provide reasonable  
and not absolute assurance against material 
misstatement or loss as described above the active 
involvement of the executive directors in the 
management committees allows the board continually  
to monitor and assess significant business operational 
financial compliance and other risks and to review the 
effectiveness of internal control this is reinforced by  
the provision to the board by the executive directors of 
regular and detailed reports covering inter alia financing 
investor relations research and development clinical 
development financial performance commercial 
interactions and intellectual property management  
in addition the board annually reviews the effectiveness  
of all significant aspects of internal control including 
financial operational and compliance controls and risk 
management the review for 2011 did not highlight  
any matters that require reporting to shareholders
oxford biomedica has procedures in place which 
incorporate the recommendations included in the frc’s 
2005 document internal control revised guidance  
for directors on the code
share capital
the information about share capital required by the 
take over directive is in the directors’ report on page 51 oxford biomedica plc   annual report and accounts 2011 47
corporate social responsibility csr requires 
consideration of the economic social and  
environ mental impacts of our business activities  
the board recognises the potential benefits of csr  
for the competitiveness of oxford biomedica and 
encourages a culture of continuous improvement  
in csrrelated issues the company has set specific 
policies that cover key aspects of csr and strives  
to operate at the highest level of integrity
employees
attracting motivating and retaining a highly skilled 
workforce are critical to oxford biomedica’s success  
the company’s employment policies are based on 
guidelines for best practice they recognise the rights  
and ensure equal opportunities for all employees  
without discrimination 
oxford biomedica aims to develop and maintain a 
motivated and professional workforce through career 
development performance management training and 
promotion managers are responsible for developing 
employees and identifying talent within the workforce 
training is given in a wide variety of ways including 
onthejob coaching and inhouse or external courses 
our annual employee appraisal process continues to 
function well by providing a formal process for setting 
objectives and reviewing performance in 2011  
we launched oxford biomedica’s new mission vision  
and values in order to further encourage inspiration  
and innovation amongst employees
management acknowledges the importance of 
communication between colleagues and company 
briefings are held to keep employees informed of general 
business issues and any other matters of interest  
the circulation of press announcements and internal 
newsletters keeps employees informed of business  
and employee activities the board as a whole takes 
considerable interest in employment matters these are 
represented at board level by the chief executive officer
health and safety
oxford biomedica is committed to protecting the health 
safety and welfare of all its employees the company’s 
health and safety management system covers all work 
activities such as the usage of biological chemical and 
radioactive materials and the operation of laboratory 
equipment 
the health and safety management system is reviewed 
and updated in order to improve current systems and 
procedures adapt to variations in scientific work and 
reflect changes in legislation oxford biomedica continues 
to have a firstclass safety record and to date has never 
been required to report an accident to the uk health  
and safety executive or a usa equivalent 
oxford biomedica strives to maintain an effective health 
and safety culture within the organisation the importance 
of health and safety is reflected through the active 
involvement of senior management and representation  
at board level by the chief scientific officer
quality assurance
oxford biomedica is committed to operating all its 
activities at a high level of scientific quality and regulatory 
compliance the company’s policies reinforce senior 
management’s commitment to high standards of quality 
being maintained at all times a set of regulations and 
procedures provide guidance and instruction pertaining 
to the development manufacturing testing clinical 
evaluation storage and distribution of investigational 
medicinal products imp performed by or authorised  
by the company 
oxford biomedica places the highest priority on the safety 
and wellbeing of its clinical trial patients who will be 
treated with the company’s products it is a regulatory 
and company requirement that employees are aware  
of the implications and importance of maintaining drug 
safety quality and efficacy throughout its clinical trial 
programmes oxford biomedica held company wide 
good manufacturing practice gmp good laboratory 
practice glp and pharmacovigilance training in 2011  
to ensure that employees are aware of and compliant 
with current best practice the company continues  
to support ongoing and periodic training as an essential 
part of its continuous improvement philosophy
strong emphasis is also placed on maintaining the 
integrity of the company’s products including their safe 
manufacture controlled distribution and compliance with 
all relevant regulations oxford biomedica is responsible 
for ensuring that each batch of product is fitforpurpose 
in terms of safety quality identity strength purity  
and expected efficacy in march 2011 the uk medicines  
and healthcare products regulatory agency mhra 
completed a successful glp compliance inspection  
of oxford biomedica there were no major or critical 
observations and the glp certificate of compliance  
was renewed in december 2011 an application was 
made to the mhra to vary the current gmp license  
to include drug manufacture for clinical trials at the 
company’s manufacturing facility and an mhra 
inspection of the manufacturing facility is expected  
in h1 2012 oxford biomedica continues to operate  
under good clinical practice gcp gmp and glp 
accreditations on an ongoing basis and has remained 
within compliance throughout 2011
corporate social responsibility oxford biomedica plc   annual report and accounts 2011 48
corporate social responsibility
manufacturing
in february 2011 oxford biomedica invested in its 
specialist manufacturing processes by acquiring a uk 
manufacturing facility based in cowley oxford during 
the refurbishment and commissioning phase of the 
manufacturing facility the company took the opportunity 
to upgrade and replace old equipment with new energy 
efficient systems the manufacturing facility complies 
with oxford biomedica’s general environmental policy  
and oxford biomedica also plans to work towards  
a recognised environmental programme
external relationships
our external stakeholders include suppliers advisers 
shareholders patients healthcare professionals partners 
collaborators and licensees these relationships are  
a fundamental aspect of our business activities we are 
committed to interacting with these third parties in an 
ethical manner and to ensuring that the relationships  
are maintained at a professional and appropriate level 
our internal procedures for dealing with third parties  
are reviewed annually
we have a policy for the management of clinical trials  
to ensure compliance with appropriate guidelines and 
legislation our website wwwoxfordbiomedicacouk 
provides information on ongoing clinical trials and  
we also list our usbased trials on a us government
sponsored website wwwclinicaltrialsgov
the chief executive officer and executive directors  
have primary responsibility for communication  
with shareholders and related stakeholders we also  
use the services of external financial and corporate 
communications agencies we seek to disseminate 
information in a timely reliable and comprehensive 
fashion and we comply with the rules and guidelines  
of the uk listing authority for a company on the  
official list 
environment
we fully recognise our responsibility to protect the 
environment and we review our environmental policy 
objectives and guidelines regularly the company 
complies with all regulations that cover the processing 
and disposal of laboratory waste using qualified licensed 
contractors for the collection and disposal of chemical 
and radioactive waste and decontaminated biological 
materials no laboratory waste goes to landfill sites 
as part of our commitment to the environment our 
policies are designed to motivate our staff to be energy 
conscious and environmentally friendly the company’s 
recycling program continues to function effectively and 
the majority of our cardboard and office paper is recycled 
in 2010 we started recycling our coffee disks in order  
to raise money for macmillan cancer support and this 
continued during 2011 given its importance to oxford 
biomedica environmental issues are represented at board 
level by the chief executive officer oxford biomedica plc   annual report and accounts 2011 49
the directors present their annual report and audited 
financial statements for the year ended 31 december 2011
principal activity
oxford biomedica lse oxb is a biopharmaceutical 
company developing innovative genebased medicines 
and therapeutic vaccines that aim to improve the lives of 
patients with high unmet medical needs the company 
was established in 1995 as a spinout from oxford 
university and has its primary listing on the london  
stock exchange 
the company has a platform of gene delivery 
technologies which are based on highly engineered  
viral systems oxford biomedica also has inhouse clinical 
regulatory and manufacturing knowhow the company’s 
technology platform includes a highly efficient gene 
delivery system lentivector
®
 platform which has 
specific advantages for targeting diseases of the central 
nervous system and the eye and a unique tumour antigen 
5t4 which is an ideal target for anticancer therapy 
the group’s products and technologies are underpinned 
by over 60 patent families which represent one of the 
broadest patent estates in the field oxford biomedica’s 
commercial partners include sanofi sigmaaldrich and 
pfizer for product development biogen idec emergent 
biosolutions glaxosmithkline merck  co and pfizer  
as technology licensees and collaborations with the 
mayo clinic and imaginab
at 31 december 2011 the group had 98 employees  
all but two of whom are based at the two operational  
sites in oxford the group has a wholly owned subsidiary 
biomedica inc in san diego california comprising an 
office for us intellectual property management and 
business development in early 2012 a decision was  
taken to close the us office and also to reduce oxford 
staff levels which will lead to a reduction in headcount 
numbers of 16
oxford biomedica plc is a public limited company 
incorporated in england and wales domiciled in england 
with its registered office at the medawar centre  
robert robinson avenue the oxford science park  
oxford ox4 4ga united kingdom
further information is available at  
wwwoxfordbiomedicacouk
review of the business and future developments
the consolidated statement of comprehensive income  
for the year is set out on page 60 a review of the group’s 
activities and future developments is contained within the 
introduction pages 01 to 03 and 06 to 07 the chairman’s 
message page 04 the chief executive’s review page 08 
the operational review on pages 18 to 29 interview  
with the chief scientific officer pages 30 to 31 and  
the financial review on pages 33 to 39 
key performance indicators kpis
key performance indicators are outlined in the directors’ 
remuneration report on pages 53 to 58
share capital
on 10 january 2011 the company issued 400000000 
new ordinary shares in a placing and open offer raising 
£20 million before expenses at 31 december 2011 the 
company had 944875557 shares in issue
dividends
the directors do not recommend payment of a dividend 
2010 nil
group research and development activities
during the year the group incurred nonexceptional 
research and development expenditure of £14710000 
2010 £15931000 and exceptional research and 
development expenditure of £3136000 2010 £3949000 
all of which was expensed in the statement of 
comprehensive income
charitable donations
the group made no charitable donations in 2011  
2010 nil 
directors’ report
for the year ended 31 december 2011 oxford biomedica plc   annual report and accounts 2011 50
directors’ report
for the year ended 31 december 2011
directors
the directors of the company at the date of signing  
the financial statements who had been directors for  
the whole of 2011 unless otherwise indicated were
nick rodgers
nonexecutive director chairman chairman of the  
audit and nomination committees
dr paul blake
nonexecutive director chairman of the remuneration 
committee member of the nomination committee
dr andrew heath
nonexecutive director deputy chairman and senior 
independent director member of the audit committee 
and the nomination committee
john dawson
chief executive officer
dr stuart naylor
chief scientific officer
peter nolan
senior vice president commercial development
tim watts
chief financial officer appointed 9 february 2012
on 5 may 2011 dr alan kingsman chairman resigned 
from the board
on 24 may 2011 dr alex lewis nonexecutive director 
resigned from the board to take up a management role  
as director of corporate activities and strategy 
on 9 february 2012 andrew wood chief financial 
officer resigned from the board
on 9 february 2012 tim watts was appointed  
to the board as chief financial officer 
all directors are subject to election by shareholders  
at the first opportunity after their appointment and to 
reelection thereafter at intervals of not more than three 
years at the 2012 annual general meeting the following 
directors will retire from the board in accordance with 
article 38 of the company’s articles of association
— peter nolan
— andrew heath
— tim watts
the contracts of employment of the executive directors 
are subject to twelve months’ notice 
biographical details of all the directors including those 
due to retire at the 2012 annual general meeting are 
given on pages 40 to 41
the interests of the directors at 31 december 2011  
in the share capital of the company are disclosed in the 
directors’ remuneration report on pages 53 to 58
directors’ third party indemnity provision
the company maintains a qualifying third party indemnity 
insurance policy to provide cover for legal action against 
its directors this was in force throughout 2011 and at  
the date of approval of the financial statements
employees
the group communicates and consults regularly with 
employees throughout the year employees’ involvement 
in the group’s performance is encouraged with all 
employees eligible to participate in the share option 
scheme or the long term incentive plan certain employees 
participate in discretionary bonus schemes
the group’s aim for all members of staff and applicants  
for employment is to fit the qualifications aptitude and 
ability of each individual to the appropriate job and  
to provide equal opportunity regardless of sex religion  
or ethnic origin the group does all that is practicable  
to meet its responsibility towards the employment  
and training of disabled people 
further details on employees health and safety 
environmental matters and corporate social responsibility 
are in the corporate social responsibility statement  
on pages 47 to 48 
substantial shareholdings
at 20 february 2012 the latest practical date prior to 
approval of the directors’ report the company had been 
notified of the following shareholdings amounting to 3  
or more of the ordinary share capital of the company
     percentage 
    number of of issued 
shareholder ordinary shares share capital
cubana investments limited 125300000 1326
mg investment management  
limited 112491100 1191
jp morgan asset management  
limited 93853869 993
gam london limited 44669470 473
td waterhouse stockbrokers 42968104 455
barclays stockbrokers 40039099 424
legal  general investment  
management 34003033 360
self trade stockbrokers 32834399 347
no other person has reported an interest in the  
ordinary shares of the company required to be notified  
to the company
no person holds shares carrying special rights with regard 
to control of the company  oxford biomedica plc   annual report and accounts 2011 51
after making enquiries the directors consider that the 
company and the group have adequate resources to 
continue in operational existence for the foreseeable 
future accordingly they have adopted the going concern 
basis in preparing the financial statements 
bia code
the uk bioindustry association ‘bia’ of which the 
company is a member adopted a code of best practice  
in 1999 the bia code includes principles and provisions 
relating to corporate governance matters access to 
external advice confidentiality dealings in the company’s 
shares and standards of public announcements it is 
intended to operate by reference to the particular 
circumstances of bioscience companies and in support  
of the combined code and the rules of the financial 
services authority throughout 2011 the company has 
complied with the relevant provisions of the bia code
information required to be disclosed  
by the takeover directive
structure of the company’s capital
the company’s share capital comprises a single class of 
1p ordinary shares each carrying one vote and all ranking 
equally with each other following the adoption of new 
articles of association in 2010 the share capital of the 
company is unlimited at 20 february 2012 there were 
944875557 1p ordinary shares issued allotted and fully 
paid there are no restrictions on the transfer of shares in 
the company or on voting rights all shares are admitted 
to trading on the london stock exchange 
rights to issue and buy back shares
each year at the annual general meeting the directors 
seek rights to allot shares the authority when granted 
lasts for 15 months or until the conclusion of the next 
annual general meeting if sooner at the last annual 
general meeting held on 5 may 2011 authority was given 
to allot up to 314958500 shares that number being one 
third of total issued share capital of the company at the 
time subject to the normal preemption rights reserved 
to shareholders contained in the companies act 2006 
and to allot up to a further 314958500 shares solely in  
a rights issue authority was also given subject to certain 
conditions to waive preemption rights over up to 
47243700 shares being 5 of the shares then in issue  
no rights have been granted to the directors to buy  
back shares 
employee share schemes
the company has a share incentive plan under which 
shares may be held in trust for employees the trustees 
may only exercise the voting rights in respect of such 
shares in accordance with the employees’ instructions 
currently there are no such shares held in trust
agreements that take effect alter or terminate  
because of a takeover bid or on change of control
there are no such agreements that the directors consider 
are material there are no agreements providing for 
compensation for loss of office for directors or employees 
in the event of a takeover bid
creditor payment policy
the company and its subsidiaries agree the terms  
of payment when agreeing the terms and conditions  
for their transactions with suppliers payment is made  
in compliance with those terms subject to the terms  
and conditions of the relevant transaction having  
been met by the supplier the group’s average creditor 
payment period at 31 december 2011 was 27 days 2010 
25 days the company has no trade creditors 2010 nil
risk management
the group’s risk management objectives and exposure  
to risks is set out on pages 42 to 43 principal risks  
and uncertainties and pages 70 to 71 note 2 financial  
risk management
going concern
oxford biomedica plc is a research and development 
based business with no currently marketed products  
the group’s business activities together with the factors 
likely to affect its future development performance and 
position are set out in the introduction pages 01 to 03 
and 06 to 07 the chairman’s message page 04 the 
chief executives’ review page 08 the operational 
review on pages 18 to 29 interview with the chief 
scientific officer pages 30 to 31 and the principal  
risks and uncertainties on pages 42 to 43 the financial 
position of the group including its cash flows is 
described in the financial review on pages 33 to 39  
in addition note 2 to the financial statements includes  
the group’s objectives policies and processes for managing 
its capital its financial risk management objectives  
and its exposure to cash flow and liquidity risk
the group is expected to incur significant further costs  
as it continues to develop its portfolio of candidate 
products and related technology the directors estimate 
that the cash held by the group will be sufficient to 
support the current level of activities into the first quarter 
of 2013 based on anticipated progress in the business  
in 2012 the directors also expect to secure additional 
financing sufficient for the future needs of the business 
beyond the first quarter of next year however there  
is no certainty that adequate resources will be available  
on a timely basis and in the event that further funding  
is not achieved then the group would have to curtail  
or suspend the existing programme development  oxford biomedica plc   annual report and accounts 2011 52
appointment and replacement of directors
directors may be appointed by an ordinary resolution  
at any general meeting of shareholders or may be 
appointed by the existing directors provided that any 
director so appointed shall retire at the next following 
annual general meeting and may offer himself for  
reelection at each annual general meeting any director 
who has served for three years and one third of the  
other directors must retire and may offer themselves for 
reelection a director may be removed in the following 
ways by an ordinary resolution at a general meeting  
if he is prohibited by law from being a director in the 
event of bankruptcy if he is suffering from specified 
mental disorders if he is absent without consent for  
more than six months or by request in writing by all  
the other directors any director may appoint another 
director or another person approved by the other 
directors as an alternate director
amendment of the company’s articles of association
amendment of the company’s articles may be made by 
special resolution at a general meeting of shareholders 
statement of directors’ responsibilities
the directors are responsible for preparing the annual 
report the directors’ remuneration report and the 
financial statements in accordance with applicable  
law and regulations
company law requires the directors to prepare financial 
statements for each financial year under that law the 
directors have prepared the group and parent company 
financial statements in accordance with international 
financial reporting standards ifrss as adopted by the 
european union under company law the directors must 
not approve the financial statements unless they are 
satisfied that they give a true and fair view of the state  
of affairs of the group and the company and of the profit 
or loss of the group for that period in preparing these 
financial statements the directors are required to
—  select suitable accounting policies and then apply 
them consistently
—  make judgements and accounting estimates that  
are reasonable and prudent and
—  state whether applicable ifrss as adopted by the 
european union have been followed subject to any 
material departures disclosed and explained in the 
financial statements
the directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain 
the company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the 
company and the group and enable them to ensure that 
the financial statements and the directors’ remuneration 
report comply with the companies act 2006 and as 
regards the group financial statements article 4 of the  
ias regulation they are also responsible for safeguarding 
the assets of the company and the group and hence for 
taking reasonable steps for the prevention and detection 
of fraud and other irregularities
the directors are responsible for the maintenance  
and integrity of the company’s website legislation  
in the united kingdom governing the preparation  
and dissemination of financial statements may differ  
from legislation in other jurisdictions
each of the directors whose names and functions  
are listed in this section confirm that to the best  
of their knowledge
—  the group financial statements which have been 
prepared in accordance with ifrss as adopted by the 
eu give a true and fair view of the assets liabilities 
financial position and loss of the group and
—  the directors’ report contained in this section includes 
a fair review of the development and performance  
of the business and the position of the group together 
with a description of the principal risks and 
uncertainties that it faces
statement as to disclosure of information to auditors
in accordance with s418 of the companies act 2006  
so far as the director is aware there is no relevant audit 
information of which the company’s auditors are unaware 
and each director has taken all the steps that he ought to 
have taken as a director in order to make himself aware  
of any relevant audit information and to establish that  
the company’s auditors are aware of that information
auditors
the auditors pricewaterhousecoopers llp have indicated 
their willingness to continue in office and a resolution 
concerning their reappointment will be proposed at the 
annual general meeting
corporate governance
the company’s statement on corporate governance is 
included in the corporate governance statement on pages 
44 to 46 of these financial statements
by order of the board
tim watts
company secretary 
5 march 2012
directors’ report
for the year ended 31 december 2011 oxford biomedica plc   annual report and accounts 2011 53
directors’ remuneration report
for the year ended 31 december 2011
only paragraphs marked with ‘’ within this report 
have been audited
during 2011 the remuneration committee met five  
times up to 5 may 2011 the committee comprised  
three nonexecutive directors dr alex lewis chairman  
dr paul blake and nick rodgers following the 2011 agm 
on 5 may 2011 the committee has comprised dr paul 
blake chairman and dr andrew heath the committee 
determines on behalf of the board the company’s  
policy for executive remuneration and the individual 
remuneration packages of the executive directors 
including awards under the long term incentive plan 
ltip the committee also determines the remuneration 
package of the chairman at the committee’s invitation  
or request the chief executive officer and other  
directors may be in attendance at the meetings  
of the remuneration committee the committee has 
access to professional advice both inside and outside  
the company as required in 2011 the committee received 
assistance on remuneration succession planning  
and other matters from rsa consulting limited 
remuneration policy
the group’s policy on remuneration is to attract retain 
and incentivise the best staff in a manner consistent  
with the goals of corporate governance in setting the 
remuneration policy the remuneration committee 
considers a number of factors including the basic salaries 
and benefits available to directors of comparable 
companies as provided by information in independent 
remuneration reports and the level of pay for other 
employees in the group 
remuneration of executive directors and the chairman
consistent with this policy the company’s remuneration 
packages awarded to executive directors are intended  
to be competitive and comprise a mix of performance
related and nonperformancerelated elements salaries 
are normally reviewed in january each year 
there is a discretionary nonpensionable bonus scheme 
for executive directors subject to the achievement of 
agreed goals and targets that are designed to incentivise 
them to perform at the highest levels and to align their 
interests with those of the shareholders the principal part 
of performancelinked remuneration is related to overall 
measures of group performance with a small amount 
being linked to individual targets which are set to support 
the group objectives and effective running of the 
company for 2011 the group performance measures 
related to the following corporate goals
— significant productrelated deals – 30
—  targets related to the existing collaboration  
with sanofi – 10
— progress of existing clinical trials – 15
— progress with new clinical trials – 35
— other goals – 10
for the executive directors the performancerelated 
annual bonus potential is up to 60 of basic salary  
for the ceo 75 of this relates to the corporate goals 
above with the balance on personal targets for the other 
executive directors the weighting for corporate goals vs 
personal targets was 6040 although several of the key 
goals were delivered in 2011 in light of the share price  
at the year end the committee decided that no bonuses 
would be paid in respect of 2011 in respect of 2010 
bonuses of 20 to 25 of salary were paid 
benefits detailed in the table of directors’ emoluments 
mainly comprise healthcare insurance 
the group makes contributions to a defined contribution 
personal pension scheme for the executive directors  
at 10 of salary 
directors and senior managers may participate in a 
sharebased long term incentive plan details of the 
awards made in 2011 under the ltip are on page 57 
awards under the ltip may be conditional shares or 
nilcost options the release of which will depend on the 
completion of a holding period of at least three years and 
the satisfaction of performance conditions up to 2009 
there was one main performance condition attached to 
share awards granted under the ltip – comparative total 
shareholder return tsr measured against a comparator 
group of companies since the ltip award made in june 
2010 a secondary performance condition described 
below was added the tsr comparator group for the  
ltip awards made in 2011 was
ark therapeutics group plc allergy therapeutics plc  
btg plc gw pharmaceuticals plc immupharma plc 
phytopharm plc proteome sciences plc proximagen 
neuroscience plc reneuron group plc renovo group 
plc silence therapeutics plc vernalis plc verona  
pharma plc oxford biomedica plc   annual report and accounts 2011 54
directors’ remuneration report
for the year ended 31 december 2011
no awards will be released at the testing date for less than median performance of oxford biomedica tsr compared  
to the comparator group median performance will result in release of 25 of the shares performance at the 75th 
percentile will result in the release of 50 of the shares with straight line release between these points upper quartile 
tsr performance ie greater than 75th percentile performance will result in release of 100 of the shares 
for tsr above median but below the upper quartile a secondary performance test based on events that are expected 
to be significant drivers of value for the company will be applied in these circumstances up to a further 50 of the 
ltip awards in 2011 will be released on the achievement of the following milestone events
event        of award released
commercial collaboration for trovax 
®
 executed        5
commercial collaboration for prosavin
®
 executed       20
exercise of the development option by sanofi for one of the collaborative ocular products    20
first batch of clinicalgrade material released from the oxford biomedica manufacturing facility   20
there will be no retesting of the performance conditions 
the maximum level of awards under the ltip in any calendar year is 150 of each eligible employee’s emoluments 
the committee intends that annual awards to executive directors will not normally exceed 100 of salary taking 
account of the level of the company’s share price in 2011 and of the potentially high number of shares and the dilutive 
impact of an award of 100 the 2011 ltip awards were scaled back to 30 of salary there is an overall limit on dilution 
from share schemes of up to 10 within a ten year period to satisfy awards to participants in the ltip and any other 
share plan operated by the company under which shares are issued including the ltip and all other share plans 
assuming that 100 of presently unvested ltip awards and share options vest and are exercised and taking into 
account all options granted in the last 10 years that had been exercised by 31 december 2011 the maximum potential 
dilution against this limit was 388 
following the introduction of the ltip in 2007 executive directors and certain senior managers no longer receive 
awards under the share option scheme however the share option scheme continues to be used for other eligible 
employees prior to 2007 options were awarded under the share option scheme to executive directors the exercise 
price for all share options is the market price of the company’s ordinary shares on the last trading day before the  
date of grant full details of directors’ share options are on pages 56 to 57 a summary of all share options outstanding 
at 31 december 2011 is given in note 22 to the financial statements the remaining share options held by directors  
at 31 december 2011 are subject to the rules of the oxford biomedica 1996 no 1 share option scheme these options 
became exercisable three years from the date of grant and will cease to be exercisable seven years from the date of 
grant all awards of share options are at the discretion of the remuneration committee share options held by directors 
are mostly subject to a performancebased condition described in note 2 to the table on page 57
remuneration of nonexecutive directors
the fees paid to nonexecutive directors are determined by the board nonexecutive directors do not receive pension 
contributions or a bonus nonexecutive directors do not participate in the company’s share option schemes 
the nonexecutive directors have appointments that are for three years unless terminated by three months’ written 
notice by either party nonexecutive directors’ appointments may be renewed by mutual agreement as recommended 
by code provision b23 any term beyond six years for a nonexecutive director is subject to considered review by  
the board nonexecutive directors serving beyond nine years are subject to renewal for one year at a time and are 
submitted for reelection each year at the annual general meeting  oxford biomedica plc   annual report and accounts 2011 55
directors’ service contracts
it is oxford biomedica plc’s policy that directors’ service contracts should have notice periods of not more than  
one year and that the contractual termination payments should not exceed the director’s current salary and benefits  
for the notice period
the details of service contracts of those who served as directors during the year are
     unexpired term  contractual 
    contract date at 31 december 2011 notice period termination payments
dr paul blake 9 december 2009 1 year 3 months notice period only
john dawson 10 october 2008 nil 
1
 12 months notice period only
dr andrew heath 9 december 2009 1 year 3 months notice period only
dr alan kingsman  4 june 2009 none
 2
 12 months notice period only
dr alex lewis 3 april 2008 none
 3
 3 months notice period only
dr stuart naylor 1 july 2008 nil 
1
 12 months notice period only
peter nolan 1 may 2002 nil 
1
 12 months notice period only
nick rodgers 5 may 2011 2 years 4 months 12 months notice period only
andrew wood
 4
 31 october 1996 nil 
1
 12 months notice period only
1 executive directors’ contracts are for an initial term of 12 months and thereafter are subject to 12 months’ notice
2  dr alan kingsman resigned from the board on 5 may 2011 prior to his resignation he entered into a consultancy agreement with the group  
due to end on 30 june 2013 
3 dr alex lewis resigned from the board on 24 may 2011 to take up a management position with the group 
4 andrew wood resigned from the board on 9 february 2012
directors’ remuneration 
details of individual directors’ emoluments for the year are as follows
      compensation 
    salary and  for loss other 2011 total 2011 2010 total 2010 
    fees benefits of office payments emoluments pension  emoluments  pension 
name of director £ £ £ £ £ £ £ £
chairman
nick rodgers
 14
 81388 – – – 81388 – 52500 –
dr alan kingsman
 2
 25000 3979 75000 77083 181062 – 170998 –
executive
john dawson  330000 5408 – – 335408 33000 416936 33000
dr stuart naylor  187500 2241 – – 189741 18750 220569 17500
peter nolan 173565 3296 – – 176861 17357 210953 17357
andrew wood
 6
 219945 2109 – – 222054 21995 265646 21995
nick woolf
 3
 – – – – – – 89753 8872
nonexecutive
dr paul blake  37333 – – – 37333 – 35000 –
dr andrew heath
 4
 42000 – – – 42000 – 35000 –
dr alex lewis
 5
 17500 – – – 17500 – 42000 –
    1114231 17033 75000 77083 1283347 91102 1539355 98724
1 nick rodgers was appointed as chairman on 5 may 2011 £32078 of his fee for 2011 relates to the period prior to 5 may 2011
2  dr alan kingsman resigned on 5 may 2011 a payment of £75000 in lieu of notice was made  
in addition to director’s fees dr alan kingsman was paid consultancy fees of £77 083 2010 £75000 
3 nick woolf resigned on 30 june 2010
4 these amounts represent amounts payable to controlled companies for the services of nonexecutive directors
5 dr alex lewis resigned from the board on 24 may 2011 
6 andrew wood resigned from the board on 9 february 2012
during 2011 retirement benefits accrued to four directors 2010 four under oxford biomedica uk limited’s  
money purchase pension scheme  oxford biomedica plc   annual report and accounts 2011 56
directors’ remuneration report
for the year ended 31 december 2011
directors’ interests
interest in shares
the interests of the directors including persons connected with the directors in the shares of the company  
at 31 december 2011 together with their interests at 1 january 2011 are shown below 
           1 january 31 december 
the company – ordinary shares of 1p each      2011 2011
dr paul blake      –  200000
john dawson      1500000  1700000
dr andrew heath      –  200000
dr stuart naylor      8921  88921
peter nolan      263638  363638
nick rodgers      52000  152000
andrew wood      305067  405067
there were no changes in the directors’ shareholdings between 31 december 2011 and the date of this report  
andrew wood resigned from the board on 9 february 2012
interests in share options
the interests of the directors in options over the ordinary shares of the company were as follows
 options over ordinary shares of 1p each
          date from 
    1 january    31 december exercise which expiry 
    2011 granted exercised lapsed  2011  price exercisable date
dr alan kingsman
 12
 190000 – – 190000 – 205p 121007 121011
dr alan kingsman
 12
 155000 – – 155000 – 205p 121007 121011
dr alan kingsman
 12
 208000 – – – 208000 290p 151208 151212
dr alan kingsman
 123
 170000 – – 170000 – 290p 151208 290112
    723000 – – 515000 208000   
dr stuart naylor  97485 – – 97485 – 205p 121007 121011
dr stuart naylor
 1
 120750 – – – 120750 290p 151208 151212
    218235 – – 97485 120750   
peter nolan
 1
 140000 – – 140000 – 205p 121007 121011
peter nolan
 1
 153000 – – – 153000 290p 151208 151212
    293000 – – 140000 153000   
andrew wood
 1
 175000 – – 175000 – 205p 121007 121011
andrew wood
 14
 193000 – – – 193000 290p 151208 151212
    368000 – – 175000 193000   
1  a performancebased condition applies to these options the options are exercisable only if at the time of exercise or for a period of at least 12 months in aggregate  
in the three years before exercise the percentage increase in oxford biomedica plc’s total shareholder return since the grant of the option exceeds the percentage increase 
in the ftse techmark mediscience index this target was chosen because the directors believe that the ftse techmark mediscience index should be a benchmark that 
reflects the factors bearing on the uk biotechnology sector
2  dr alan kingsman resigned from the board of oxford biomedica on 5 may 2011 but remains a consultant in accordance with the rules of the oxford biomedica 1996  
no1 share option scheme the options held at 5 may 2011 remained in place on their original terms 
3 these options lapsed on 29 january 2011
4 andrew wood’s options at 31 december 2011 will lapse oxford biomedica plc   annual report and accounts 2011 57
longterm incentive plan
awards have been made to executive directors under the ltip as follows 
     1 january    31 december award vesting 
      2011  awarded  exercised lapsed   2011 date date
john dawson
 3
  2500 000 – – 1500 000 1000000 131008 131011
john dawson  2500 000 – – – 2500000 250309 250312
john dawson
 4
  1692000 – – – 1692000 150610 150613
john dawson
 4
  – 1704000 – – 1704000 130411 130414
     6992000 1704000 – 1500000 6896000  
dr alan kingsman
 5
  1291871 – – 1291871 – 130308 130311
dr alan kingsman
 6
  899000 – – 899000 – 250309 250312
     2190871 – – 2190871 –  
dr stuart naylor
 5
  311284 – – 311284 – 130308 130311
dr stuart naylor  811000 – – – 811000 250309 250312
dr stuart naylor
 4
  897000 – – – 897000 150610 150613
dr stuart naylor
 4
  – 968000 – – 968000 130411 130414
     2019284 968000 – 311284 2676000  
peter nolan
 5
  771400 – – 771400 – 130308 130311
peter nolan  854000 – – – 854000 250309 250312
peter nolan
 4
  890000 – – – 890000 150610 150613
peter nolan
 4
  – 896000 – – 896000 130411 130414
     2215400 896000 – 771400 2640000  
andrew wood
 5
  977533 – – 977533 – 130308 130311
andrew wood
 7
  1082000 – – – 1082000 250309 250312
andrew wood
 47
  1128000 – – – 1128000 150610 150613
andrew wood
 47
  – 1136000 – – 1136000 130411 130414
     3187533 1136000 – 977533 3346000  
1  all awards made under the ltip to date have been nilcost share options options exercisable at par value subject to a performance condition these options vest  
on the third anniversary of the date of grant and if vested may be exercised until the tenth anniversary of the date of grant
2  the performance condition for these awards compares the company’s total shareholder return ‘tsr’ to the tsr of a chosen group of healthcare and biotechnology 
companies over a three year period a median ranking must be achieved before any part of the award vests 25 of the award and an upper quartile ranking must be 
achieved for the award to vest in full
3  on 13 october 2011 the tsr performance test was applied to the ltip award made on 13 october 2008 oxford biomedica’s tsr over the 3 year period was ranked  
11th out of 20 companies in accordance with the scheme rules 40 of the award vested and the remaining 60 of the award lapsed the share price at the date  
of vesting was 534p the value of the vested share options at 31 december 2011 was £35000
4  for the ltip awards since 2010 a secondary performance test based on events that are expected to be significant drivers of value for the company will be applied  
if tsr is above median but below the upper quartile in these circumstances up to 50 of the ltip award will be released on the achievement of the specified  
milestone events
5  on 13 march 2011 the tsr performance test was applied to the ltip award made on 13 march 2008 oxford biomedica’s tsr over the 3 year period was below the median  
of the comparator group and consequently none of the awards vested 
6 dr alan kingsman resigned on 5 may 2011 and consequently his remaining ltip awards lapsed
7   andrew wood resigned on 9 february 2012 the company has agreed that the 3346000 ltip awards held by andrew wood at 9 february 2012 shall not lapse  
as a consequence of the termination of his employment with the company but shall continue as if he had remained an eligible employee and participant  
both terms as defined in the ltip rules until the expiry date of the last of such ltip awards 
the company regularly reviews the performance conditions that apply to ltip awards in order to estimate  
the extent to which the awards might vest assuming that relative share price performance in the comparator  
groups remains consistent with performance up to 31 december 2011 the directors estimate that the ltip  
awards would vest as follows
— award made on 25 march 2009 performance below median – none of this award would vest
— award made on 15 june 2010 performance below median – none of this award would vest
— award made on 13 april 2011 performance below median – none of this award would vest oxford biomedica plc   annual report and accounts 2011 58
directors’ remuneration report
for the year ended 31 december 2011
the market value of ordinary shares as at 31 december 2011 was 350p 31 december 2010 553p the market value  
of ordinary shares during the year ranged from 291p to 720p
except as detailed above no directors had interests in shares or share options of the company or any other group 
company at 31 december 2011 there have been no changes in the interests of the directors in office at the date of  
this report in the ordinary shares of the company between 31 december 2011 and the date of this report
comparison of five year total shareholder return 
the chart shows the value at the end of each year of £100 invested on 31 december 2006 in oxford biomedica 1p 
ordinary shares oxb compared to the change in the ftse allshare index and the ftse techmark mediscience index 
over the same period in previous years we have observed that the oxb share price tends to follow the direction given 
by the benchmark indices but with greater volatility and occasionally affected by major company developments 
these trends were apparent in the earlier part of the period up to q3 2009 with a steep drop through 2007 and 2008 
and a reversal from q2 2009 coinciding with the commencement of the ocular collaboration with sanofi in april 2009 
however since q3 2009 the market has generally been on a rising trend while the oxb share price trended 
downwards between q3 2009 and q3 2010 and moved down sharply in q4 2010 on the announcement of a placing 
and open offer of 400 million new shares at 5p per share a further downward movement occurred in q4 2011 
following the release of clinical trial data for prosavin
®
 on 15 december 2011
the directors consider that the high volatility in share price is not unique to oxford biomedica but is a feature  
shared by many hightech companies whose valuations are significantly influenced by newsflow investor sentiment 
and attitude to risk
in the opinion of the directors the ftse allshare index should be a reasonable index against which the total 
shareholder return of oxford biomedica plc may be measured over a fiveyear term because it represents  
a broadbased objective measure of investment return from equities the ftse techmark mediscience index  
made up of emerging healthcare companies in the early stages of growth provides a second benchmark that  
may better reflect the factors bearing on valuations in the uk biotechnology sector 
dr paul blake
chairman of the remuneration committee
key
oxford biomedica plc
ftse techmark mediscience index
ftse allshare index 
200
150
100
50
0
dec 06
mar 07
jun 07
sept 07
dec 07
mar 08
jun 08
sept 08
dec 08
mar 09
jun 09
sept 09
dec 09
mar 10
jun 10
sept 10
dec 10
mar 11
jun 11
sept 11
dec 11 oxford biomedica plc   annual report and accounts 2011 59
independent auditors’ report 
to the members of oxford biomedica plc
we have audited the financial statements of oxford 
biomedica plc for the year ended 31 december 2011  
which comprise the consolidated statement of  
com pre hensive income the balance sheets the 
statements of cash flows the statements of changes  
in equity attributable to owners of the parent company 
and the related notes the financial reporting framework 
that has been applied in their preparation is applicable 
law and international financial reporting standards  
ifrss as adopted by the european union and as regards 
the parent company financial statements as applied  
in accordance with the provisions of the companies  
act 2006
respective responsibilities of directors and auditors 
as explained more fully in the statement of directors’ 
responsibilities set out on page 52 the directors are 
responsible for the preparation of the financial statements 
and for being satisfied that they give a true and fair view 
our responsibility is to audit and express an opinion on 
the financial statements in accordance with applicable law 
and international standards on auditing uk and ireland 
those standards require us to comply with the auditing 
practices board’s ethical standards for auditors 
this report including the opinions has been prepared  
for and only for the company’s members as a body in 
accordance with chapter 3 of part 16 of the companies 
act 2006 and for no other purpose we do not in giving 
these opinions accept or assume responsibility for any 
other purpose or to any other person to whom this report 
is shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient  
to give reasonable assurance that the financial statements 
are free from material misstatement whether caused  
by fraud or error this includes an assessment of whether 
the accounting policies are appropriate to the group’s  
and the parent company’s circumstances and have been 
consistently applied and adequately disclosed the 
reasonableness of significant accounting estimates made 
by the directors and the overall presentation of the 
financial statements in addition we read all the financial 
and nonfinancial information in the annual report to 
identify material inconsistencies with the audited financial 
statements if we become aware of any apparent material 
misstatements or inconsistencies we consider the 
implications for our report
opinion on financial statements 
in our opinion 
—  the financial statements give a true and fair view of the 
state of the group’s and of the parent company’s affairs 
as at 31 december 2011 and of the group’s loss and 
the group’s and parent company’s cash flows for the 
year then ended
—  the group financial statements have been properly 
prepared in accordance with ifrss as adopted by the 
european union 
—  the parent company financial statements have been 
properly prepared in accordance with ifrss as adopted 
by the european union and as applied in accordance 
with the provisions of the companies act 2006 and
—  the financial statements have been prepared in 
accordance with the requirements of the companies 
act 2006 and as regards the group financial 
statements article 4 of the ias regulation 
opinion on other matters prescribed  
by the companies act 2006 
in our opinion 
—  the part of the directors’ remuneration report to  
be audited has been properly prepared in accordance 
with the companies act 2006 and
—  the information given in the directors’ report for  
the financial year for which the financial statements 
are prepared is consistent with the financial 
statements
matters on which we are required to report by exception 
we have nothing to report in respect of the following 
under the companies act 2006 we are required to report 
to you if in our opinion 
—  adequate accounting records have not been kept by 
the parent company or returns adequate for our audit 
have not been received from branches not visited by 
us or 
—  the parent company financial statements and the part 
of the directors’ remuneration report to be audited  
are not in agreement with the accounting records  
and returns or 
—  certain disclosures of directors’ remuneration specified 
by law are not made or 
—  we have not received all the information and 
explanations we require for our audit
under the listing rules we are required to review 
—  the directors’ statement set out on page 51  
in relation to going concern
—  the parts of the corporate governance statement 
relating to the company’s compliance with the nine 
provisions of the uk corporate governance code 
specified for our review and
—  certain elements of the report to shareholders by  
the board on directors’ remuneration
miles saunders senior statutory auditor
for and on behalf of pricewaterhousecoopers llp 
chartered accountants and statutory auditors
reading
5 march 2012 oxford biomedica plc   annual report and accounts 2011 60
consolidated statement of comprehensive income
for the year ended 31 december 2011
 2011 2010
      pre exceptional  pre exceptional 
      exceptional  items  exceptional items 
      items note 5 total items note 5 total 
    notes  £’000 £’000 £’000 £’000 £’000 £’000
revenue 3  7718 – 7718 11153 – 11153
cost of sales chargecredit 7  555 – 555 593 – 593
gross profit   7163 – 7163 11746 – 11746
research and development costs 7  14710 3136 17846 15931 3949 19880 
administrative expenses 7  3811 – 3811 3919 – 3919 
other operating income grants receivable   56 – 56 42 – 42
operating lossprofit   11302 3136 14438 8062 3949 12011
       
finance income 6  144 – 144 222 – 222
finance costs 6  8 – 8 15 – 15
loss before tax   11166 3136 14302 7855 3949 11804
taxation 8  1671 – 1671 1514 – 1514
loss for the year 25  9495 3136 12631 6341 3949 10290
       
other comprehensive income
exchange adjustments   2 – 2 4 – 4
total recognised comprehensive  
expense for the year  
attributable to owners of the parent   9497 3136 12633 6345 3949 10294
basic loss and diluted loss  
per ordinary share 9    135p   189p
 
the results for the years above are derived entirely from continuing operations
there is no difference between the loss before tax and the loss for the years stated above and their historical  
cost equivalents oxford biomedica plc   annual report and accounts 2011 61
balance sheets 
as at 31 december 2011
 group company
        2011 2010 2011 2010 
      notes  £’000 £’000 £’000 £’000
assets     
noncurrent assets     
intangible assets   11  3106 6683 – –
property plant and equipment    12  4213 580 – –
financial assets investments in subsidiaries   13  – – 33115 29976
        7319 7263 33115 29976
current assets     
trade and other receivables   14  2800 4795 1 792
current tax assets     1641 1331 – –
financial assets available for sale investments   15  7500 5603 – –
cash and cash equivalents   15  6835 6653 – 2
        18776 18382 1 794
current liabilities     
trade and other payables   16  3226 3923 46 638
deferred income   17  4386 5201 – –
current tax liabilities     – 11 – –
provisions   18  41 83 – –
        7653 9218 46 638
net current assetsliabilities     11123 9164 45 156
noncurrent liabilities     
other noncurrent liabilities     – 123 – –
deferred income   17  170 4201 – –
provisions   18  501 498 – –
        671 4822 – –
net assets     17771 11605 33070 30132
equity attributable to owners of the parent     
ordinary shares    21  9449 5449 9449 5449
share premium    24  124755 110387 124755 110387
merger reserve   26  14310 14310 13599 13599
other reserves   26  682 680 4302 3871
retained losses   25  130061 117861 119035 103174
total equity     17771 11605 33070 30132
 
the company’s registered number is 03252665 
the financial statements on pages 60 to 89 were approved by the board of directors on 5 march 2012 and were  
signed on its behalf by 
john dawson 
chief executive officer oxford biomedica plc   annual report and accounts 2011 62
statements of cash flows
for the year ended 31 december 2011
 group company
        2011 2010 2011 2010 
      notes  £’000 £’000 £’000 £’000
cash flows from operating activities
cash used in operations   27  14323 15289 139 175
interest paid     – 1 – –
tax credit received     1418 2508 – –
overseas tax paid     78 46 – –
net cash used in operating activities     12983 12828 139 175
cash flows from investing activities     
loan tofrom subsidiary     – – 18433 182
proceeds from sale of property plant and equipment    – 2 – –
proceeds from sale of fixed asset investments     – 36 – –
purchases of property plant and equipment      3640 291 – –
purchases of intangible assets     9 266 – –
net purchasematurity of available for sale investments    1897 12897 – –
net cash used ingenerated from investing activities    5546 12378 18433 182
cash flows from financing activities     
interest received     144 309 – –
proceeds from issue of ordinary share capital     20000 210 20000 210
costs of share issues     1430 216 1430 216
net cash generated fromused in financing activities    18714 303 18570 6
net increasedecrease in cash and cash equivalents    185 147 2 1
cash and cash equivalents at 1 january     6653 6802 2 1
effects of exchange rate changes     3 2 – –
cash and cash equivalents at 31 december   15  6835 6653 – 2 oxford biomedica plc   annual report and accounts 2011 63
statements of changes in equity attributable to owners of the parent
for the year ended 31 december 2011
      share  share merger other retained 
      capital premium reserve reserves losses total 
group notes  £’000 £’000 £’000 £’000 £’000 £’000
at 1 january 2010   5412 110043 14310 676 108113 20976
year ended 31 december 2010       
exchange adjustments   – – – 4 – 4
loss for the year   – – – – 10290 10290
total comprehensive expense for the year   – – – 4 10290 10294
transactions with owners
share options 
 proceeds from shares issued 21 24  2 11 – – – 13
 value of employee services 23  – – – – 542 542
issue of shares excluding options 21 24  35 347 – – – 382
costs of share issues 24  – 14 – – – 14
at 31 december 2010   5449 110387 14310 680 117 861 11605
year ended 31 december 2011       
exchange adjustments   – – – 2 – 2
loss for the year   – – – – 12631 12631
total comprehensive expense for the year   – – – 2 12631 12633
transactions with owners
share options        
 value of employee services 23  – – – – 431 431
issue of shares excluding options 21 24  4000 16000 – – – 20000
costs of share issues 24  – 1632 – – – 1632
at 31 december 2011   9449 124755 14310 682 130061 17 771
      share  share merger other retained 
      capital premium reserve reserve losses total 
company notes  £’000 £’000 £’000 £’000 £’000 £’000
at 1 january 2010   5412 110043 13599 3329 71500 60883
year ended 31 december 2010       
loss for the year   – – – – 31674 31674
total comprehensive expense for the year   – – – – 31674 31674
transactions with owners
share options 
 proceeds from shares issued 21 24  2 11 – – – 13
  credit in relation to employee  
share schemes 26  – – – 542 – 542
issue of shares excluding options 21 24  35 347 – – – 382
costs of share issues 24  – 14 – – – 14
at 31 december 2010   5449 110387 13599 3871 103174 30132
year ended 31 december 2011       
loss for the year   – – – – 15861 15861
total comprehensive expense for the year   – – – – 15861 15861
transactions with owners
share options        
  credit in relation to employee  
share schemes 26  – – – 431 – 431
issue of shares excluding options 21 24  4000 16000 – – – 20000
costs of share issues 24  – 1632 – – – 1632
at 31 december 2011   9449 124755 13599 4302 119035 33070 oxford biomedica plc   annual report and accounts 2011 64
notes to the consolidated financial statements 
for the year ended 31 december 2011
1 accounting policies 
the principal accounting policies adopted in the 
preparation of these financial statements are set out 
below these policies have been consistently applied to  
all the financial years presented unless otherwise stated
basis of preparation
the financial statements have been prepared in 
accordance with international financial reporting 
standards ‘ifrs’ as adopted by the european union  
and international financial reporting interpretations 
committee ‘ifric’ interpretations endorsed by the 
european union and with those parts of the companies 
act 2006 applicable to companies reporting under ifrs 
the financial statements are prepared in accordance 
with the historical cost convention as more fully 
explained in the directors’ report on page 49 to 52  
the going concern basis has been adopted in preparing 
the financial statements 
going concern
oxford biomedica plc is a research and development 
based business with no currently marketed products  
the group’s business activities together with the factors 
likely to affect its future development performance  
and position are set out in the introduction pages 01  
to 03 and 06 to 07 the chairman’s message page 04 
the chief executives’ review page 08 the operational 
review on pages 18 to 29 interview with the chief 
scientific officer pages 30 to 31 and the principal risks 
and uncertainties on pages 42 to 43 the financial 
position of the group including its cash flows is 
described in the financial review on pages 33 to 39  
in addition note 2 to the financial statements includes  
the group’s objectives policies and processes for 
managing its capital its financial risk management 
objectives and its exposure to cash flow and  
liquidity risk
the group is expected to incur significant further  
costs as it continues to develop its portfolio of candidate 
products and related technology the directors estimate 
that the cash held by the group will be sufficient to 
support the current level of activities into the first quarter 
of 2013 based on anticipated progress in the business  
in 2012 the directors also expect to secure additional 
financing sufficient for the future needs of the business 
beyond the first quarter of next year however there  
is no certainty that adequate resources will be available 
on a timely basis and in the event that further funding  
is not achieved then the group would have to curtail  
or suspend the existing programme development 
after making enquiries the directors consider that the 
company and the group have adequate resources to 
continue in operational existence for the foreseeable 
future accordingly they have adopted the going concern 
basis in preparing the financial statements
accounting developments
the following new standards and amendments to 
standards are mandatory for the first time for the financial 
year beginning 1 january 2011 and are considered to have 
an impact on the group
—  revised ias 24 ‘related party disclosures’ issued in 
november 2009 it supersedes ias 24 ‘related party 
disclosures’ issued in 2003 the revised ias 24 is 
required to be applied from 1 january 2011
the following new standards amendments to standards 
and interpretations are mandatory for the first time for  
the financial year beginning 1 january 2011 but are  
not currently relevant for the group
—  ‘classification of rights issues’ amendment to ias 32 
issued in october 2009 there have been no rights 
issued denominated in a foreign currency and so this 
will have no impact on the group
—  ‘prepayments of a minimum funding requirement’ 
amendments to ifric 14 issued in november 2009 is 
effective for annual periods beginning 1 january 2011 
the standard is not applicable to the group as there is 
no defined benefit pension scheme
—  ‘extinguishing financial liabilities with equity 
instruments’ amendment to ifric 19 the standard  
is not applicable to the group as no renegotiation of 
terms with creditors has taken place
—  ‘firsttime adoption of ifrs – limited exemption from 
comparative ifrs 7 disclosures for firsttime adopters 
amendment to ifrs 1 this is not applicable to the 
group as it is not a firsttime adopter of ifrs 
—  improvements to international financial reporting 
standards 2010 effective 1 january 2011 
the following new standards new interpretations  
and amendments to standards and interpretations  
have been issued but are not effective for the financial 
year beginning 1 january 2011 and have not been 
adopted early
—  ifrs 9 ‘financial instruments’ issued in december 
2009 this addresses the classification and 
measurement of financial assets the group is 
assessing whether there will be any impact on the 
accounting for its financial assets the standard is  
not applicable until 1 january 2013 but is available  
for early adoption
—  ias 19 ‘employee benefits’ was amended in june 2011 
the standard is not applicable to the group as there  
is no defined benefit pension scheme
—  ifrs 10 ‘consolidated financial statements’ builds  
on existing principles by identifying the concept of 
control as the determining factor in whether an entity 
should be included within the consolidated financial 
statements of the parent company the group has 
assessed that this will not impact the entities which  
are consolidated the standard is not applicable until  
1 january 2013 but is available for early adoption oxford biomedica plc   annual report and accounts 2011 65
—  ifrs 12 ‘disclosures of interests in other entities’ 
includes the disclosure requirements for all forms  
of interests in other entities including joint 
arrangements associates special purpose vehicles  
and other off balance sheet vehicles the standard  
is not applicable to the group 
—  ifrs 13 ‘fair value measurement’ aims to improve 
consistency and reduce complexity by providing a 
precise definition of fair value and a single source of 
fair value measurement and disclosure requirements 
for use across ifrss the standard is not applicable  
to the group
use of estimates and assumptions
the preparation of financial statements in conformity  
with ifrs requires the use of certain critical accounting 
estimates and assumptions that affect the reported 
amounts of assets and liabilities at the date of the financial 
statements and the reported amounts of revenues  
and expenses during the reporting period estimates  
and judgements are continually made and are based  
on historic experience and other factors including 
expectations of future events that are believed to  
be reasonable in the circumstances
critical accounting estimates and assumptions
where the group makes estimates and assumptions 
concerning the future the resulting accounting 
estimates will seldom exactly match actual results  
due to the amounts involved the estimates and 
assumptions regarding revenue recognition and the 
impairment of tangible and intangible assets have  
the greatest risk of causing a material adjustment  
to the carrying amounts of assets and liabilities 
revenue recognition
in 2009 the group received an upfront nonrefundable 
payment of us260 million £166 million from sanofi 
under the ocular product collaboration this is being 
recognised as revenue on a straight line basis over 42  
to 51 months the expected duration of the initial stage  
of the collaboration for each of the four products 
obtaining data from clinical trials will be a key factor  
in achieving the expected timelines estimating the 
startdate and duration of clinical trials is subject to  
many factors including the time taken to get regulatory 
approval and the rate of patient recruitment so such 
estimates are inherently risky up to 31 december 2011 
revenue of £124 million has been recognised in respect 
of the initial payment for this collaboration with the 
remaining £42 million classified as deferred income  
if the revenue recognition periods had been six months 
longer the amount of revenue recognised in 2011 would 
have been reduced by £06 million 2010 £06 million  
and the amount of deferred income carried forward  
at 31 december 2011 increased by £15 million 2010  
£10 million had the revenue recognition period been  
six months shorter the amount of revenue recognised  
in 2011 would have been increased by £08 million  
2010 £08 million and the amount of deferred income 
carried forward at 31 december 2011 decreased by  
£20 million 2010 £13 million
over the term of the ocular product collaboration  
with sanofi oxford biomedica may recover up to  
us240 million in research and development funding  
and recognise this as revenue project costs in excess  
of us240 million will be borne by oxford biomedica  
the amount of research and development funding that  
is recognised as revenue is based on an estimate of  
the amount of project costs expected to be borne  
by the group by the end of the collaboration up to  
31 december 2011 £114 million 2010 £87 million  
had been recognised as revenue and £04 million  
2010 £05 million had been classified as current 
deferred income if the estimated total project 
expenditure had been 5 higher the amount of revenue 
recognised to 31 december 2011 would have been  
£06 million 2010 £04 million lower and the amount  
of deferred income higher by the same amounts 
intangible asset impairment
the group has significant intangible assets arising from 
purchases of intellectual property rights and inprocess 
rd amortisation is charged over the assets’ patent  
life on a straight line basis from the date that the asset 
becomes available for use when there is an indicator  
of a significant and permanent reduction in the value  
of intangible assets an impairment review is carried  
out the impairment analysis is principally based  
on estimated discounted future cash flows actual 
outcomes could vary significantly from such estimates  
of discounted future cash flows due to the sensitivity  
of the assessment to the assumptions used the 
determination of the assumptions is subjective and 
requires the exercise of considerable judgement any 
changes in key assumptions about the group’s business 
and prospects or changes in market conditions affecting 
the group or its development partners could materially 
affect the amount of impairment this risk is now 
concentrated on purchased patent rights which have been 
sublicensed to collaborative partners at 31 december 
2011 the book value of intangible assets was £31 million 
of which £22 million related to primeboost technology 
in respect of intellectual property rights and inprocess 
rd relating to hi8
® 
mel following a marketing initiative 
that did not result in securing a partner an impairment 
charge of £31 million was recognised in 2011 writing  
the hi8
® 
mel asset down to zero  oxford biomedica plc   annual report and accounts 2011 66
notes to the consolidated financial statements 
for the year ended 31 december 2011
manufacturing facility carrying value
the group acquired a new manufacturing facility  
in 2011 at a cost of £19 million and has incurred 
capitalisable refurbishment costs of £12 million giving  
a book value of £31 million prior to purchasing the plant 
the group obtained an independent valuation and an 
indication of a ‘firesale’ price if the manufacturing plant 
was to be stripped out and the building sold as a shell 
which was substantially less than the year end carrying 
value however the directors consider that the book  
value is supported on a valueinuse basis as the costs  
of inhouse manufacture of lentivector
®
 platform batches 
is very substantially lower than the cost of purchasing 
them from a thirdparty contract manufacturer the value 
in use calculation is based on an assumed output of  
19 batches over the next 4 years the number of batches 
is dependent on the progress of the company and its 
collaborations and so is inherently uncertain however 
the plant only needs to operate at approximately 50  
of its capacity for forecast savings to support the value  
in use and carrying value of the facility 
basis of consolidation
the consolidated statement of comprehensive income 
the group balance sheet and the group statement  
of cash flows include the financial statements of the 
company and its subsidiary undertakings made up  
to 31 december subsidiaries are consolidated from  
the date at which control is transferred to the group
subsidiaries are entities that are directly or indirectly 
controlled by the group control exists where the  
group has the power to govern the financial and 
operating policies of the entity so as to obtain benefits 
from its activities in assessing control potential voting 
rights that are currently exercisable or convertible  
are taken into account
the purchase method of accounting is used to account 
for the acquisition of subsidiaries by the group the  
cost of an acquisition is measured as the fair value of  
the assets given equity instruments issued and liabilities 
incurred or assumed at the date of exchange identifiable 
assets acquired and liabilities and contingent liabilities 
assumed in a business combination are measured initially 
at their fair values at the acquisition date irrespective of 
the extent of any minority interest the excess of the cost 
of the acquisition over the fair value of the group’s share 
of the identifiable net assets acquired is recorded as 
goodwill if the cost of acquisition is less than the fair 
value of the net assets of the subsidiary acquired the 
difference is recognised directly in the statement of 
comprehensive income where necessary adjustments 
are made to the financial statements of subsidiaries  
to bring accounting policies used into line with those  
of the group
intercompany transactions balances and unrealised 
gains on transactions between group companies are 
eliminated unrealised losses are also eliminated but 
considered an impairment indicator of the asset 
transferred accounting policies of subsidiaries have  
been changed where necessary to ensure consistency 
with the policies adopted by the group
the group and company have elected not to apply  
ifrs 3 ‘business combinations’ retrospectively to business 
combi nations which took place prior to 1 january 2004 
namely the acquisition in 1996 of 100 of the issued 
share capital of oxford biomedica uk limited that has 
been accounted for by the merger accounting method
revenue
the group generates revenue from product and 
technology licence transactions and from funded 
research and development programmes 
product licence transactions typically have an initial 
upfront nonrefundable payment on execution of  
the licence and the potential for further payments 
conditional on achieving specific milestones plus 
royalties on product sales technology licence 
transactions typically have an initial upfront  
nonrefundable payment on execution of the licence  
and the potential for further annual maintenance 
payments for the term specified in the licence  
where the initial fee paid is nonrefundable and there  
are no ongoing commitments from the group and the 
licence has no fixed end date the group recognises the 
element received up front as a payment in consideration 
of the granting of the licence on execution of the 
contract amounts receivable in respect of milestone 
payments are recognised as revenue when the specific 
conditions stipulated in the licence agreement have been 
met payments linked to “success” such as regulatory filing  
or approval achievement of specified sales volumes  
are recognised in full when the relevant event has 
occurred maintenance fees within the contracts are 
spread over the period to which they relate usually  
a year otherwise amounts receivable are recognised  
in the period in which related costs are incurred or  
over the estimated period to completion of the relevant 
phase of development or associated clinical trials 
research and development funding is recognised  
as revenue over a period that corresponds with the 
performance of the funded research and development 
services where the group incurs passthrough expenses 
in relation to collaborative partners’ own research and 
development programmes such costs are included  
in the group’s financial statements as operating  
expenses net of collaborator reimbursement and  
the reimbursement received does not form part  
of the group’s revenue 
amounts recognised exclude value added tax  
differences between cash received and amounts 
recognised are included as deferred income where  
cash received exceeds revenue recognised and as  
accrued income where revenue has yet to be billed  
to the customer oxford biomedica plc   annual report and accounts 2011 67
cost of sales
the group’s products and technologies include 
technology elements that are licensed from third parties 
cost of sales is the royalty arising on such third party 
licenses where royalty due on revenue has not been paid 
it is included in accruals where revenue is spread over  
a number of accounting periods the royalty attributable  
to the deferred revenue is included in prepayments 
passthrough costs reimbursed by collaborative partners 
do not form part of cost of sales
segmental reporting
operating segments are reported in a manner  
consistent with the internal reporting provided to the 
chief operating decisionmaker the chief operating 
decisionmaker responsible for allocating resources and 
assessing performance of the operating segments has 
been identified as the senior management group smg  
the group has one single business segment based  
upon its proprietary technology
clinical trial expenses
where advances are made to clinical trial sites or stocks 
of materials for use in clinical trials are purchased and 
stored the relevant costs are included in trade and other 
receivables as prepaid clinical trial expenses expenses  
are charged to the statement of comprehensive income 
as clinical trial services are carried out or clinical trial 
materials are used 
exceptional items
exceptional items represent significant items of income 
and expense which due to their nature or the expected 
infrequency of the events giving rise to them are 
presented separately on the face of the statement of 
comprehensive income to give a better understanding  
to shareholders of the elements of financial performance 
in the period so as to facilitate comparison with prior 
periods and to better assess trends in financial 
performance exceptional items include nonrecurring 
reorganisation costs costs to complete onerous or  
futile contracts and intangible asset impairments
financial instruments
the group and company’s financial instruments 
comprise investments in subsidiaries cash and cash 
equivalents together with available for sale investments 
and receivables and payables arising directly from 
operations cash and cash equivalents comprise cash  
in hand and short term deposits which have an original 
maturity of three months or less and are readily 
convertible into known amounts of cash availablefor
sale financial assets are nonderivatives that are either 
designated in this category or not classified in any  
of the other categories they are included as noncurrent 
assets unless management intends to dispose of the 
investments within 12 months of the financial year  
end bank deposits with maturity of more than three 
months at the date of inception are included in the 
classification ‘financial assets available for sale 
investments’ and are carried at their historic purchase 
price unless there is objective evidence of impairment  
in which case they are written down to fair value  
such assets are classified as current where manage ment 
intend to dispose of the asset within twelve months of  
the financial year end financial instruments are valued  
at fair value subject to review for impairment at the 
financial year end charges or credits for impairment are 
passed through the statement of comprehensive income
the group does not enter into derivative transactions 
and it is the group’s policy not to undertake any trading 
in financial instruments the group does not have any 
committed borrowing facilities current operations are 
financed from its own cash resources cash balances are 
mainly held on short and medium term deposits with 
financial institutions with a credit rating of at least a in 
line with the group’s policy to minimise the risk of loss 
the main risks associated with the group’s financial 
instruments relate to interest rate risk and foreign 
currency risk the group’s policy in relation to interest 
rate risk is to monitor short and medium term interest 
rates and to place cash on deposit for periods that 
optimise the amount of interest earned while maintaining 
access to sufficient funds to meet day to day cash 
requirements in relation to foreign currency risk  
the group’s policy is to hold the majority of its funds  
in sterling no other hedging of foreign currency cash  
flows is undertaken 
leases
assets acquired under leases are reviewed to see if they 
are operating leases or finance leases the following 
characteristics would lead to classification as a finance 
lease
—  if the leases transfer ownership of the assets at the end 
of the lease
—  if they have a bargain purchase option
—  if the lease term is for the major part of the economic 
life of the asset
—  if the leased assets are specialised for the lease only
no leases have been classified as finance leases costs in 
respect of operating leases are charged to the statement 
of comprehensive income on a straight line basis over  
the lease term oxford biomedica plc   annual report and accounts 2011 68
notes to the consolidated financial statements 
for the year ended 31 december 2011
property plant and equipment
property plant and equipment are carried at their 
historical purchase cost together with any incidental 
expenses of acquisition less depreciation cost includes 
the original purchase price of the asset and any costs 
attributable to bringing the asset to its working condition 
for its intended use such as refurbishment costs
depreciation is calculated so as to write off the cost  
of property plant and equipment less their estimated 
residual values on a straight line basis over the expected 
useful economic lives of the assets concerned 
depreciation of an asset begins when it is available for 
use the principal annual rates used for this purpose are
manufacturing assets including  10 
freehold property 
short leasehold improvements 20
or the remaining lease  
term if shorter
computer equipment 33
office and laboratory equipment  20 
fixtures and fittings 
the assets’ residual values and useful lives are reviewed 
and adjusted if appropriate at each financial year end
intangible assets
intangible assets relating to intellectual property rights 
acquired through licensing or assigning patents and 
knowhow are carried at historic cost less accumulated 
amortisation and impairments where the useful 
economic life of the asset is finite and the asset will 
probably generate economic benefits exceeding costs 
where a finite useful life of the acquired intangible asset 
cannot be determined the asset is tested annually for 
impairment amortisation commences when products 
underpinned by the intellectual property rights become 
available for use in this context a development candidate 
which is at a stage where management would expect  
it could be the subject of a commercial development 
collaboration or available for outlicensing then the 
intellectual property asset is considered to be available  
for use amortisation is calculated on a straight line  
basis over the remaining patent life of the asset 
expenditure on product development is capitalised as an 
intangible asset and amortised over the expected useful 
economic life of the product concerned capitalisation 
commences from the point at which technical feasibility 
and commercial viability of the product can be 
demonstrated and the group is satisfied that it is probable 
that future economic benefits will result from the product 
once completed capitalisation ceases when the product 
receives regulatory approval for launch no such costs 
have been capitalised to date
expenditure on research and development activities that 
do not meet the above criteria including ongoing costs 
associated with acquired intellectual property rights and 
intellectual property rights generated internally by the 
group is charged to the statement of comprehensive 
income as incurred intellectual property and inprocess 
research and development from acquisitions are 
recognised as intangible assets at fair value any residual 
excess of consideration over the fair value of net assets  
in an acquisition is recognised as goodwill in the  
financial statements
impairment of nonfinancial assets
the carrying value of nonfinancial assets with indefinite 
lives is reviewed annually for impairment or earlier if  
an indication of impairment occurs and provision made 
where appropriate charges or credits for impairment are 
passed through the statement of comprehensive income 
an impairment loss is recognised for the amount by 
which the asset’s carrying amount exceeds its recoverable 
amount the recoverable amount is the higher of  
an asset’s fair value less costs to sell and value in use  
for the purposes of assessing impairments assets are 
grouped at the lowest levels for which there are separately 
identifiable cash flows or cashgenerating units
financial assets investments
financial assets investments of the group are carried  
at cost less any provision made for impairment options 
over the company’s shares have been awarded to 
employees of subsidiary companies in accordance with 
uitf44 the company treats the value of these awards  
as a capital contribution to the subsidiaries resulting  
in an increase in the cost of investment
trade receivables
trade receivables are recognised initially at fair value  
and subsequently measured at amortised cost using the 
effective interest method less provision for impairment  
a provision for impairment of trade receivables is 
established when there is objective evidence that  
the group will not be able to collect all amounts due 
according to the original terms of the receivables 
significant financial difficulties of the debtor probability 
that the receivable will enter bankruptcy or financial 
reorganisation and default or delinquency in payments 
more than 30 days overdue are considered indicators 
that the trade receivable is impaired the amount of the 
provision is the difference between the asset’s carrying 
amount and the present value of estimated future cash 
flows discounted at the original effective interest rate 
the carrying amount of the asset is reduced through the 
use of an allowance account and the amount of the loss 
is recognised in the income statement within ‘selling and 
marketing costs’ when a trade receivable is uncollectible 
it is written off against the allowance account for trade 
receivables subsequent recoveries of amounts previously 
written off are credited against ‘selling and marketing 
costs’ in the income statement oxford biomedica plc   annual report and accounts 2011 69
cash and cash equivalents
cash and cash equivalents include cash in hand deposits 
held on call with banks and other short term highly liquid 
investments with original maturities of three months or 
less bank deposits with original maturities between three 
months and twelve months are included in current assets 
and are classified as available for sale financial assets  
after initial recognition available for sale investments  
are measured at their fair value
trade payables
trade payables are obligations to pay for goods or services 
that have been acquired in the ordinary course of business 
from suppliers accounts payable are classified as current 
liabilities if payment is due within one year or less if not 
they are presented as noncurrent liabilities trade payables 
are recognised initially at fair value and subsequently 
measured at amortised cost using the effective  
interest method
provisions
provisions are measured at the present value of  
the expenditure expected to be required to settle  
the obligation using a pretax rate that reflects current  
market assessments of the time value of money and  
the risks specific to the obligations the increase in  
the provision due to the passage of time is recognised  
as interest expense
when leasehold properties become redundant or excess 
space arises in those properties the group provides for  
all costs to the end of the lease or the anticipated date  
of surrender of the lease net of anticipated income 
onerous lease provisions are discounted using the uk 
government zerocoupon bond yield applicable to  
the term of the cash flows 
the group recognises dilapidations provisions when 
property leases have a legal or constructive obligation  
to reinstate any alterations or to make good dilapidations 
at the end of the lease it is probable that an outflow of 
resources will be required to settle the obligation and  
the amount has been reliably estimated dilapidations 
provisions are discounted using the uk government  
bond yield applicable to the remaining term of the 
relevant leases 
share capital
ordinary shares are classified as equity costs of share 
issues are charged to the share premium account
government and other grants
income from government and other grants is recognised 
over the period necessary to match them with the related 
costs which they are intended to compensate on a 
systematic basis this grant income is included as other 
operating income within the statement of comprehensive 
income and the related costs are included within 
research and development costs and administrative 
expenses where the purchase of property plant and 
equipment is supported by a grant the relevant asset  
is included in the balance sheet at its full purchase  
price and grant income is recognised over the useful  
life of the asset the difference between grant income 
receivable and income recognised is included in  
deferred income
rental income
rental income from the group’s redundant former 
research and development facility in san diego usa is 
offset in the statement of comprehensive income against 
the rent payable under the head lease rental income is 
recognised in the statement of comprehensive income 
when it becomes receivable 
employee benefit costs
the group operates a defined contribution pension 
scheme for its directors and employees the assets  
of the scheme are held in independently administered  
funds the pension cost charge recognised in the period 
represents amounts payable by the group to the scheme
share based payments
equity settled share based payments under which the 
group receives services from employees as consideration 
for equity instruments options are measured at fair value 
at the date of grant and expensed on a straightline basis 
over the vesting period of the award options issued on 
the same date are valued in batches where the valuation 
model assumptions are the same at each financial year 
end the group revises its estimate of the number of 
options in each batch that are expected to become 
exercisable based on the nonmarket vesting condition 
at the end of the vesting period for each batch of options 
the cumulative charge for sharebased payment reflects 
the actual options that have vested with no charge  
for those options which were forfeit prior to vesting  
the financial consequences of revisions to the original 
estimates if any are recognised in the current year 
statement of comprehensive income either as an 
addition to or a deduction from the charge for sharebased 
payment with a corresponding adjustment to equity 
the fair value of share options is measured using a 
blackscholes option pricing model where complex 
market performance criteria exist a monte carlo model 
has been used to establish the fair value on grant  
when share options are exercised the proceeds received 
are credited to share capital nominal value and  
share premium oxford biomedica plc   annual report and accounts 2011 70
notes to the consolidated financial statements 
for the year ended 31 december 2011
other employee benefits
the expected cost of compensated short term absence 
eg holidays is recognised when employees render 
services that increase their entitlement accrual is made 
for holidays earned but not taken and prepayments 
recognised for holidays taken in excess of days earned 
foreign currency translation and transactions
items included in the financial statements of each of  
the group’s entities are measured using the currency  
of the primary economic environment in which the entity 
operates the ‘functional currency’ the consolidated 
financial statements are presented in sterling which  
is the company’s and the group’s functional and 
presentational currency
monetary assets and liabilities in foreign currencies  
are translated into the functional currency at the rates  
of exchange ruling at the end of the financial year 
transactions in foreign currencies are translated into  
the functional currency at the rates of exchange ruling at 
the date of the transaction foreign exchange differences 
are taken to the statement of comprehensive income  
in the year in which they arise
assets and liabilities of the company’s us subsidiary are 
translated to sterling at the year end exchange rate whilst 
its statements of income and cash flows are translated  
at monthly average rates redundant assets at the us 
subsidiary’s former laboratories have been written down 
to a book value of zero and have no impact on present  
or future exchange differences translation differences 
that arise are taken directly to a currency translation 
account within equity
taxation including deferred income tax
the chargecredit for current tax is based on the results 
for the year adjusted for items which are nonassessable 
or disallowed it is calculated using tax rates that have 
been enacted or substantially enacted at the financial  
year end
deferred income tax is accounted for using the liability 
method in respect of temporary differences arising  
from differences between the carrying amount of  
assets and liabilities in the financial statements and  
the corresponding tax bases used in the computation  
of taxable profit in principle deferred income tax liabilities 
are recognised for all taxable temporary differences and 
deferred income tax assets are recognised to the extent 
that it is probable that taxable profits will be available 
against which deductible temporary differences can  
be utilised 
deferred income tax liabilities are recognised for  
taxable temporary differences arising on investments in 
subsidiaries and associates except where the group and 
company are able to control the reversal of the temporary 
difference and it is probable that the temporary difference 
will not reverse in the foreseeable future
deferred income tax is calculated at the average tax rates 
that are expected to apply to the period when the asset  
is realised or the liability is settled deferred income tax  
is charged or credited in the statement of comprehensive 
income except when it relates to items credited or 
charged directly to equity in which case the deferred 
income tax is also dealt with in equity
2 financial risk management 
financial risk factors
the group’s relatively simple structure principally 
operating in the united kingdom and the lack of debt 
financing reduces the range of financial risks to which  
it is exposed monitoring of financial risk is part of the 
board’s ongoing risk management the effectiveness of 
which is reviewed annually the group’s agreed policies 
are implemented by the chief financial officer who 
submits reports at each board meeting the group does 
not use financial derivatives and it is the group’s policy 
not to undertake any trading in financial instruments
a foreign exchange risk
at the current time the group’s revenues are mostly 
receivable in united states dollars and certain of its 
expenditures are payable in euros and us dollars the 
majority of operating costs are denominated in sterling  
in 2011 the level of us dollardenominated receipts was 
closely matched by usdollar denominated payments 
such that a 10 difference in the £ exchange rate would 
only have had an impact of approximately £10000 over 
the year in the future if this degree of matching was not 
present it could present a possible source of foreign 
exchange risk the group had a slightly greater exposure 
to the £€ exchange rate due to the need to fund 
expenditure denominated in euros had sterling been  
10 weaker in relation to the euro the increased cost  
in 2011 would have been approximately £224000 
b interest rate risk
the group does not have any committed borrowing 
facilities current operations are financed from its own 
cash resources the group’s policy is to maximise interest 
receivable on deposits subject to maintaining access  
to sufficient liquid funds to meet day to day operational 
requirements and preserving the security of invested 
funds with the current low level of bank interest rates 
interest receivable on bank deposits in 2011 was just 
£144000 2010 £213000 
if interest rates had been 100 basis points higherlower  
in 2011 the impact on net loss in 2011 would have been  
a decreaseincrease of £111000 2010 £164000 due  
to changes in the amount of interest receivable oxford biomedica plc   annual report and accounts 2011 71
c credit risks
the group’s policy is to place funds with financial 
institutions rated at least a and to distribute deposits 
between several banks 
currently the majority of the group’s revenue and a 
significant proportion of the group’s trade and other 
receivables derive from a single trading relationship 
although the counterparty is a profitable wellcapitalised 
multinational organisation there is a theoretical credit  
risk associated with this concentration of revenue 
d cash flow and liquidity risk
at present the group’s operations are funded from its 
cash and shortterm investments the maturity profile  
of investments is structured to ensure that sufficient  
liquid funds are available to meet planned operating 
requirements to date the group’s funding has been 
provided mainly by the issue of shares and from 
commercial collaborations most recently the company 
raised £20 million before costs from a placing and open 
offer which closed on 10 january 2011 future working 
capital is expected to be provided by commercial 
collaborations and licensing transactions licensing 
transactions typically provide funding from milestone
based payments which are significant in size but 
infrequent there can be no certainty that this source  
of funding will be timely or sufficient and that additional 
funding from other sources including the issue of further 
shares will not be required in planning the group’s 
activities and its financial resources the directors take 
account of the probability receiving income from 
commercial collaborations and of the likely availability  
of other sources of funding the group’s spending plans 
are set to achieve a balance between adding value  
to the key development programmes while seeking  
to maximise the operating window provided  
by current funds the directors consider that the 
company and the group have adequate resources  
to continue in operational existence for the  
foreseeable future 
e pricing risk
currently the group’s revenue derives from collaboration 
milestones and reimbursement of funded research and 
development which should not be sensitive to pricing 
risk the ocular research and development collaboration 
with sanofi is subject to an overall cap of us24 million 
which means that if the relevant costs escalate from the 
levels currently anticipated the group would suffer future 
losses equal to the amount of cost escalation 
f capital management
the group manages its cash cash equivalents and 
available for sale investments in order to ensure it  
has working capital to meet its day to day needs and  
has never failed in this objective further information  
on cash flow and liquidity risk is given in section d 
above the group is not subject to any regulation 
requiring any specific capital management
derivative financial instruments and hedging
there were no derivatives at 31 december 2011  
or 31 december 2010 and hedge accounting has  
not been used
fair value estimates
the fair value of short term deposits with a maturity  
of one year or less is assumed to be the book value
3 segmental analysis
the chief operating decisionmaker has been identified 
as the senior management group smg comprising  
the executive directors and other key members of 
management the smg reviews the group’s internal 
reporting in order to assess performance and allocate 
resources management has determined the operating 
segments based on internal management reports 
the smg considers that the business comprises  
a single activity which is biotechnology research and 
development the smg reviews the group’s profit  
or loss and its cash flows assets and liabilities on  
a wholecompany basis in carrying out these reviews 
the smg considers all material items of income and 
expenditures that are directly attributable to individual 
development programmes the internal management 
reports do not allocate assets and liabilities or shared 
overheads to individual products as the group does  
not consider it meaningful in the present development 
phase to attempt to attribute profits or losses to  
individual products 
based on the above considerations there is considered  
to be one reportable segment biotechnology research 
and development
internal and external reporting is on a consolidated basis 
with purchases and sales between subsidiaries eliminated 
on consolidation therefore the segment financial 
information is the same as that set out in the consolidated 
statement of comprehensive income the consolidated 
balance sheet the consolidated statement of cash flows 
and the consolidated statement of changes in equity  oxford biomedica plc   annual report and accounts 2011 72
notes to the consolidated financial statements 
for the year ended 31 december 2011
the group’s revenue derives wholly from assets located in the united kingdom analysed by location of customers 
revenue derives from the european union and the united states of america
          2011 2010 
revenue by customer location       £’000 £’000
europe       7379 10347
united states of america       339 806
total revenue       7718 11153
revenue attributable to the ocular collaboration with sanofi was £7316000 2010 £10286000
no revenue has its destination in the united kingdom
4 employees and directors
the average monthly number of persons including executive directors employed by the group during the year was
          2011 2010 
by activity       number number
office and management       10 11
research and development       76 62
total        86 73
          2011 2010 
employee benefit costs        £’000 £’000
short term employee benefits       4955 4916
postemployment benefits note 28       329 296
termination benefits       47 35
share based payments note 23       431 542
total employee benefit costs       5762 5789
          2011 2010 
key management compensation       £’000 £’000
short term employee benefits       2264 2557
postemployment benefits        150 151
termination benefits       – 30
share based payments       326 403
total        2740 3141
the key management figures above include executive and nonexecutive directors as well as the rest of the  
senior management group  further information about the remuneration of individual directors is provided in the 
audited part of the directors’ remuneration report on pages 53 to 58 which forms part of these financial statements
the company had no employees during the year 2010 nil
5 exceptional items 
exceptional items represent significant items of income or expense which due to their nature or the expected 
infrequency of the events giving rise to them are presented separately on the face of the statement of comprehensive 
income to give a better understanding to shareholders of the elements of financial performance in the year so as  
to facilitate comparison with prior periods and to better assess trends in financial performance
          2011 2010 
group       £’000 £’000
exceptional research and development costs       3136 3949
in 2010 following a review of the carrying value of intangible assets the directors made a provision for impairment  
of £3949000 covering the product hi8
®
 mel in 2011 at the conclusion of a divestment process which did not secure  
a partner for hi8
®
 mel the residual carrying value of £3136000 was impaired oxford biomedica plc   annual report and accounts 2011 73
6 finance income and expense
          2011 2010 
group       £’000 £’000
finance income
bank interest receivable       144 213
other interest receivable       – 9
total finance income       144 222
finance expense
unwinding of discount in provisions note 18       8 14
other interest payable       – 1
total finance expense       8 15
net finance income       136 207
7  expenses by nature
 group company
        2011 2010 2011 2010 
        £’000 £’000 £’000 £’000
excluding exceptional items
cost of sales royalties payable – net chargecredit     555 593 – –
employee benefit costs note 4     5762 5789 – –
consumables used     1211 1013 – –
depreciation of property plant and equipment note 12    336 345 – –
amortisation and impairment note 11     450 699
impairment of investment note 13       15275 31522
loss on disposal of property plant and equipment    – 2 – –
loss on disposal of intangible asset     – 17 – –
profit on sale of fixed asset investment     – 36 – –
repairs and maintenance expenditure on property plant and equipment  263 246 – –
operating lease payments      1123 1122 – –
rental income from sublease      482 481 – –
consultants and subcontracted research     687 372 – –
externally contracted clinical and preclinical development   4766 7077 – –
legal and professional fees including patent costs    1693 1555 128 143
net gain on foreign exchange     21 102 – –
other expenses     2733 2232 8 9
total before exceptional items     19076 19257 15861 31674
exceptional items
impairment of intangible assets     3136 3949 – –
total cost of sales research and development and administrative expenses  22212 23206 15861 31674 oxford biomedica plc   annual report and accounts 2011 74
notes to the consolidated financial statements 
for the year ended 31 december 2011
during the year the group obtained services from the group’s auditors as detailed below
 group company
        2011 2010 2011 2010 
services provided by the group’s auditors     £’000 £’000 £’000 £’000
fees payable to the company’s auditors for the audit of the parent company  
and consolidated financial statements     44 37 52 37
fees payable to the company’s auditors and its associates for other services
 the audit of the company’s subsidiaries pursuant to legislation   38 29 – 
 other services pursuant to legislation      11 28 5 18
 taxation      23 22 1 
 expenses of share issue
 1
     – 170 – 170
total      116 286 58 225
1  in 2010 the company incurred costs of £170000 with pricewaterhousecoopers llp classified as prepayments at 31 december 2010 and charged as costs of share issues 
in 2011 in connection with the placing and open offer which closed on 10 january 2011 
8 taxation 
the group is entitled to claim tax credits in the united kingdom for certain research and development expenditure 
the amount included in the statement of comprehensive income for the year ended 31 december 2011 comprises  
the credit receivable by the group for the year less overseas tax paid in the year the united kingdom corporation  
tax research and development credit is paid in arrears once tax returns have been filed and agreed the tax credit 
recognised in the financial statements but not yet received is included in current tax assets in the balance sheet  
the amounts for 2011 have not yet been agreed with the relevant tax authorities 
  group
          2011 2010 
continuing operations       £’000 £’000
current tax
united kingdom corporation tax research and development credit     1641 1331
overseas taxation       58 70
          1583 1261
adjustments in respect of prior periods
united kingdom corporation tax research and development credit     87 239
overseas taxation       1 14
taxation credit       1671 1514
the company has no tax liability nor is it entitled to tax credits 2010 nil oxford biomedica plc   annual report and accounts 2011 75
the tax credit for the year is lower 2010 lower than the standard rate of corporation tax in the uk the differences  
are explained below
 group company
        2011 2010 2011 2010 
        £’000 £’000 £’000 £’000
loss on ordinary activities before tax     14302 11804 15861 31674
loss on ordinary activities before tax multiplied by the standard rate  
of corporation tax in the uk of 265 2010 28    3790 3305 4203 8869
effects of
accelerated tax depreciation and other timing differences    979 1269 – –
expenses not deductible for tax purposes  
includes impairment of investments in subsidiaries    45 11 4167 8827
rd relief markup on expenses     1949 1608 – –
difference in rate relating to rd tax credits     1766 1331 – –
tax deduction for share options less than share option accounting charge  174 263 – –
overseas tax     5 5 – –
tax losses carried forward to future periods     1207 750 36 42
overseas tax difference in rate     20 23 – –
adjustments in respect of prior periods     88 253 – –
current tax credit for the year     1671 1514 – –
at 31 december 2011 the group had tax losses to be carried forward of approximately £87 3 million 2010 £830 million 
of which £826 million has been agreed with the revenue authorities of the group tax losses £873 million 2010  
£830 million arose in the united kingdom 
there is no deferred tax recognised see note 20
9 basic loss and diluted loss per ordinary share
the basic loss per share has been calculated by dividing the loss for the year by the weighted average number of shares 
in issue during the year ended 31 december 2011 935012543 2010 543924620 
as the group is lossmaking there were no potentially dilutive options in either year there is therefore no difference 
between the basic loss per ordinary share and the diluted loss per ordinary share 
10 loss for the financial year
as permitted by section 408 of the companies act 2006 the company’s statement of comprehensive income has  
not been included in these financial statements the company’s loss for the year was £15861000 2010 £31674000  
the loss includes a charge of £15725000 2010 £31522000 for impairment of investments in subsidiaries  oxford biomedica plc   annual report and accounts 2011 76
notes to the consolidated financial statements 
for the year ended 31 december 2011
11 intangible assets
          intellectual 
         inprocess  property 
         rd  rights  total 
group      £’000 £’000 £’000
cost
at 1 january 2011      10400 5289 15689
additions       – 9 9
at 31 december 2011      10400 5298 15698
accumulated amortisation and impairment
at 1 january 2011      7238 1768 9006
amortisation charge for the year      114 336 450
impairment provided in the year      3048 88 3136
at 31 december 2011      10400 2192 12592
net book amount at 31 december 2011      – 3106 3106
cost
at 1 january 2010      10400 5505 15905
additions       – 229 229
disposals      – 445 445
at 31 december 2010      10400 5289 15689
accumulated amortisation and impairment
at 1 january 2010      3667 1119 4786
amortisation charge for the year      409 290 699
impairment provided in the year      3162 787 3949
disposals      – 428 428
at 31 december 2010      7238 1768 9006
net book amount at 31 december 2010      3162 3521 6683
for intangible assets regarded as having a finite useful life amortisation commences when products underpinned by  
the intellectual property rights become available for use amortisation is calculated on a straight line basis over the 
remaining patent life of the asset 
an intangible asset is regarded as having an indefinite useful life when based on an analysis of all of the relevant factors 
there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity 
such assets are tested annually for impairment 
inprocess rd relates to the product hi8
®
 mel acquired as part of the acquisition of oxxon therapeutics limited in 
2007 during the year a process to divest hi8
® 
mel was concluded without securing a partner the asset was fully 
impaired with a charge of £3136000 2010 charge of £3949000
impairment losses are recognised for the amount by which each asset’s carrying amount exceeds its recoverable 
amount the recoverable amount is the higher of an asset’s fair value less costs to sell and value in use where the asset 
is no longer being developed by the company sales value less cost to sell is used as the recoverable amount  
value in use is calculated using estimated discounted future cash flows key assumptions in the discounted cash flow 
calculations are
—  the product is developed by a collaborative partner who funds all future development costs and markets the product
—  the group receives an initial licence fee milestone payments and royalties on sales
—  the cash flow projections include estimates for selling price royalty rates population growth disease incidence  
and market penetration 
—  the resulting cash receipts are discounted at 12 per annum
—  the cash flow projections are a longterm view based on the expected patent life due to the length of the 
development cycle for innovative medicines this period is significantly longer than 5 years  oxford biomedica plc   annual report and accounts 2011 77
the key assumptions are management estimates based where possible on available information for similar products 
due to the novelty and early stage of development of the group’s products it is not possible to benchmark these 
assumptions against past experience 
impairment and amortisation charges are included within research and development costs in the statement of 
comprehensive income 
intellectual property rights comprise third party patent rights that have been purchased by the group no inhouse 
research and development or patent costs are included in intangible assets
the company had no intangibles at 31 december 2011 or 31 december 2010
12 property plant and equipment
        short office 
        leasehold equipment 
       freehold improve and laboratory 
       property ments computers equipment total 
group    £’000 £’000 £’000 £’000 £’000
cost
at 1 january 2011    – 2966 441 2913 6320
exchange adjustments    – 1 – – 1
additions at cost    3115 44 214 596 3969
disposals    – – 49 193 242
at 31 december 2011     3115 3011 606 3316 10048
depreciation
at 1 january 2011    – 2716 351 2673 5740
exchange adjustments    – 1 – – 1
charge for the year    45 93 86 112 336
disposals    – – 49 193 242
at 31 december 2011    45 2810 388 2592 5835
net book amount at 31 december 2011    3070 201 218 724 4213
         office 
        short equipment 
        leasehold and laboratory 
        improvements computers equipment total 
        £’000 £’000 £’000 £’000
cost
at 1 january 2010     2864 395 2859 6118
exchange adjustments     15 1 – 16
additions at cost     137 61 99 297
disposals     50 16 45 111
at 31 december 2010      2966 441 2913 6320
depreciation
at 1 january 2010     2597 292 2598 5487
exchange adjustments     15 1 – 16
charge for the year     154 72 119 345
disposals     50 14 44 108
at 31 december 2010      2716 351 2673 5740
net book amount at 31 december 2010     250 90 240 580
on 25 february 2011 the group purchased a freehold property in oxford uk comprising a manufacturing facility  
and associated offices and laboratories for £1896000 including costs of acquisition the facility was previously 
approved by the medicines and healthcare products regulatory agency mhra to good manufacturing practice  
gmp standards oxford biomedica has invested a further £1219000 on the building and £477000 on plant and 
equipment in order to commission the facility a process which was substantially complete by 31 december 2011 
the company had no property plant and equipment at 31 december 2011 or 31 december 2010 oxford biomedica plc   annual report and accounts 2011 78
notes to the consolidated financial statements 
for the year ended 31 december 2011
13 investment in subsidiaries
          2011 2010 
fixed asset investments company       £’000 £’000
shares in group undertakings
at 1 january and 31 december       17 158 17158
loans to group undertakings
at 1 january       110423 110420
loan advancedrecovered in the year       18433 182
subsidiary debt settled by issue of parent shares       – 185
at 31 december       128856 110423
total investments in shares and loans to group undertakings      146014 127581
impairment 
at 1 january        101476 69954
impairment charge in the year       15725 31522
at 31 december       117201 101476
net book amount at 31 december       28813 26105
capital contribution in respect of  
employee share schemes see note 26
at 1 january       3871 3329
additions in the year       431 542
at 31 december       4302 3871
total investments       33115 29976
the group had no investments at 31 december 2011 2010 nil 
interests in subsidiary undertakings
      proportion of nominal 
      value of issued shares 
    country of description of held by the group 
name of undertaking incorporation  shares held and company nature of business
oxford biomedica uk limited great britain 1p ordinary shares 100 gene therapy 
        research and 
        development
biomedica inc united states of america 0001 100 gene therapy 
     common stock   research and  
       development
oxxon therapeutics limited  great britain 1p ordinary shares 100 dormant
all of the above subsidiaries have been consolidated in these financial statements
at each year end the directors review the carrying value of the company’s investment in subsidiaries by reference  
to the group’s market capitalisation on the london stock exchange where there is a material and sustained shortfall  
or a significant and sustained change in the business resulting in an increase in market capitalisation the directors 
consider this to be a trigger of an impairment review as set out in ias 36 and the carrying value of the company’s 
investments in subsidiaries is adjusted the directors consider that reference to the market capitalisation of the group  
is an appropriate external measure of the value of the group for this purpose following an impairment review at  
31 december 2011 a £15725000 impairment charge was recognised cumulative impairment of £117201000 was  
held at 31 december 2011 oxford biomedica plc   annual report and accounts 2011 79
14 trade and other receivables
 group company
        2011 2010 2011 2010 
        £’000 £’000 £’000 £’000
noncurrent    
other receivables – rent deposit     – 150 – –
current    
trade receivables     154 394 – –
accrued income     33 1366 – –
other receivables     256 108 – –
other tax receivable     858 109 – –
prepaid costs of share issues     – 777 – 777
prepaid clinical trial expenses     493 368 – –
prepayments     1006 1523 1 15
        2800 4645 1 792
total trade and other receivables     2800 4795 1 792
the fair value of trade and other receivables are the current book values
at 31 december 2011 and 31 december 2010 none of the trade receivables were aged over three months and 
consequently there are considered to be no past due trade receivables no provision for impairment of receivables  
has been recognised noncurrent receivables are not discounted as the impact of discounting would not be material 
accrued income of £33000 2010 £1366000 relates to rd funding receivable from sanofi
in january 2011 the company raised £20 million before costs in a placing and open offer costs related to the share 
issue of £777000 classified as prepaid costs of share issues at 31 december 2010 were recognised as costs of share 
issues in 2011 
prepaid clinical trial expenses mainly comprise advance payments to clinical trial sites
the carrying amounts of the group’s trade and other receivables are denominated in the following currencies
         2011  2010 
         £’000  £’000
sterling      1841  2669
us dollar      959  2126
         2800  4795
the company’s receivables are all denominated in sterling
the maximum exposure to credit risk at the reporting date is the fair value of each class of receivable above the group 
does not hold any collateral as security
15 cash and cash equivalents
 group company
        2011 2010 2011 2010 
        £’000 £’000 £’000 £’000
cash at bank and in hand     6835 6653 – 2
total cash and cash equivalents     6835 6653 – 2
in addition to the cash and cash equivalents described above the group held sterling bank deposits of £7500000 
2010 £5603000 with a maturity of twelve months classified as available for sale investments none of these deposits 
is past due or impaired 
the company held no available for sale investments in 2011 or 2010 oxford biomedica plc   annual report and accounts 2011 80
notes to the consolidated financial statements 
for the year ended 31 december 2011
16 trade and other payables – current
 group company
        2011 2010 2011 2010 
        £’000 £’000 £’000 £’000
trade payables     1200 1277 – –
other taxation and social security     161 139 – –
accrued share issue costs     – 525 – 525
accruals     1865 1982 46 113
total trade and other payables     3226 3923 46 638
17  deferred income
          2011 2010 
group       £’000 £’000
current        4386 5201
noncurrent       170 4201
total deferred income       4556 9402
on 28 april 2009 the group entered into a collaborative programme with sanofi to develop gene therapy products  
to treat ocular diseases an initial nonrefundable payment of us26 million £16641000 was received this is being 
recognised as revenue on a straight line basis over 42 to 51 months the expected duration of the initial stage of the 
collabo ration for each of the four products revenue to date of £12440000 has been recognised under this collabo ra
tion of which £4665000 was recognised in 2011 the remaining £4201000 is classified as deferred income £4031000 
is expected to be recognised as income in the next 12 months and is classified as current the remaining £170000 is 
classified as noncurrent
over the term of the ocular gene therapy collaboration oxford biomedica may recover from sanofi up to us24 million 
in research and development funding project costs in excess of us24 million will be borne by oxford biomedica  
to date £11387000 has been recognised as revenue of which £2651000 was recognised in 2011 £355000 2010 
£457000 has been classified as current deferred income
the company had no deferred income in 2011 or 2010
18 provisions
          onerous 
        clinical trial dilapidations lease total 
group      £’000  £’000 £’000  £’000
at 1 january 2011     – 457 124 581
exchange adjustments     – – 2 2
utilised in the year     – – 82 82
unwinding of discount     – 7 1 8
change of discount rate – adjustment to recognised fixed asset   – 37 – 37
at 31 december 2011      – 501 41 542
at 1 january 2010     817 420 200 1437
exchange adjustments     – – 8 8
utilised in the year     817 – 88 905
unwinding of discount     – 12 2 14
change of discount rate – charged in the statement of comprehensive income – – 2 2
change of discount rate – adjustment to recognised fixed asset   – 25 – 25
at 31 december 2010      – 457 124 581
         2011  2010 
         £’000  £’000
current      41  83
noncurrent      501  498
total provisions      542  581 oxford biomedica plc   annual report and accounts 2011 81
the dilapidations provision relates to anticipated costs of restoring the leasehold property in oxford uk to its  
original condition at the end of the present leases in 2016 discounted using the rate per the bank of england nominal 
yield curve the equivalent rate was used in 2010 the provision will be utilised at the end of the leases if they are  
not renewed 
the onerous lease provision relates to the estimated rental shortfall in respect of a redundant property in san diego 
usa which has been sublet for the remainder of the lease term until june 2012 discounted using the rate per the  
bank of england nominal yield curve the equivalent rate was used in 2010 the provision will be utilised over the term 
of the lease
the company had no provisions at 31 december 2011 or 31 december 2010
19 financial instruments
the group’s and company’s financial instruments comprise investments in subsidiaries cash and cash equivalents 
together with available for sale investments trade and other receivables and trade and other payables additional 
disclosures are set out in the corporate governance statement and in note 2 relating to risk management
the group had the following financial instruments at 31 december each year
 assets liabilities
        2011 2010 2011 2010 
        £’000 £’000 £’000 £’000
cash and cash equivalents note 15     6835 6653 – –
available for sale investments     7500 5603 – –
trade receivables and other receivables  note 14    410 652 – –
trade and other payables excluding tax note 16    – – 3065 3784
        14745 12908 3065 3784
all the available for sale investments held at 31 december 2011 and 31 december 2010 were denominated in sterling 
the weighted average interest rates and average deposit terms for fixed rate deposits are shown below floating rate 
instant access deposits earned interest at prevailing bank rates 
 2011 2010
      year end deposits yr average year end deposits yr average
      weighted weighted weighted weighted weighted weighted  
      average rate average term average rate average rate average term average rate
sterling   148 225 days 075 095 118 days 131
euro    125 31 days 055 085 31 days 049
us dollars   065 31 days 066 090 31 days 046
in accordance with ias 39 ‘financial instruments recognition and measurement’ the group has reviewed all contracts 
for embedded derivatives that are required to be separately accounted for if they do not meet certain requirements set 
out in the standard there were no such derivatives identified at 31 december 2011 or 31 december 2010
fair value
the directors consider that the fair values of the group’s financial instruments do not differ significantly from their  
book values  oxford biomedica plc   annual report and accounts 2011 82
notes to the consolidated financial statements 
for the year ended 31 december 2011
20 deferred taxation
neither the company nor the group had any recognised deferred tax assets or liabilities at 31 december 2011 2010 
nil in light of the group’s continuing losses recovery of the deferred tax asset is not sufficiently certain and therefore 
no asset has been recognised
a number of changes to the uk corporation tax system were announced in the march 2011 budget statement  
the finance act 2011 which was substantively enacted on 29 march 2011 included legislation reducing the  
main corpo ra tion tax rate from 28 per cent to 26 per cent from 1 april 2011 the finance no 2 act 2011 which  
was substantively enacted on 5 july 2011 included legislation reducing the main corporation tax rate from  
26 per cent to 25 per cent from 1 april 2012 the effects of these reductions in corporation tax rate are included  
in these financial statements 
further reductions to the main corporation tax rate are proposed to reduce the rate by 1 per cent per annum to 23  
per cent by 1 april 2014 these further changes had not been substantively enacted at the balance sheet date and are 
therefore not included in these financial statements these further reductions in the corporation tax rate are not 
expected to have a material impact on the tax figures disclosed in these financial statements
       accelerated tax   share 
group    depreciation provisions tax losses options total 
deferred tax liabilitiesassets – not recognised    £’000 £’000 £’000 £’000 £’000
at 1 january 2011    295 338 22439 125 22607
origination and reversal of temporary differences   991 5 611 65 320
at 31 december 2011    696 343 21828 60 22927
at 1 january 2010    2049 336 22705 240 21232
origination and reversal of temporary differences   1754 2 266 115 1375
at 31 december 2010    295 338 22439 125 22607
21 calledup share capital
group and company        2011 2010 
issued and fully paid       £’000 £’000
ordinary shares of 1p each
at 1 january – 544875557 2010 541185828 shares      5449 5412
allotted for cash in placing and open offer – 400000000 2010 nil shares    4000 –
allotted for cash to licensors of patent rights in 2010 – 1699876 shares    – 17
allotted on exercise of share options in 2010 – 181892 shares      – 2
issued to settle an ip royalty liability in 2010 – 1807961 shares     – 18
at 31 december – 944875557 2010 544875557 shares     9449 5449
from 1 october 2009 the companies act 2006 abolished the requirement for a company to have an authorised share 
capital the company’s articles were amended to this effect by special resolution on 27 april 2010
on 10 january 2011 the company issued 400000000 new ordinary shares of 1p each in a placing and open offer at  
5p per share raising £200 million before costs costs of this share issue including commission payable on completion 
were £1638000  oxford biomedica plc   annual report and accounts 2011 83
22 options over shares of oxford biomedica plc
the company has outstanding share options that were issued under the following schemes
—  the oxford biomedica 1996 no1 share option scheme closed october 2006
—  the oxford biomedica 2007 share option scheme approved february 2007
—  the long term incentive plan ltip for executive directors and senior executives approved february 2007
options have also been granted to a small number of individuals mainly employees of the company’s us subsidiary 
biomedica inc under individual option agreements 
the total number of options over ordinary shares of 1p each that had been granted and had not been exercised  
or lapsed at 31 december 2011 was as follows 
options granted to employees including directors under the oxford biomedica 1996 no 1 share option scheme
 2011 2010 
 number number exercise price date from which 
 of shares of shares  per share exercisable expiry date
 – 1964676 165p to 230p 260307 to 291107 260311 to 291111
 1853999 1853999 2025p to 4325p 010408 to 151208 010412 to 151212
 966904 980125 2825p to 310p 210309 to 060909 210313 to 060913
 282 0  9 0 3 4798800
 
 
options granted to employees under the oxford biomedica 2007 share option scheme
 2011 2010 
 number number exercise price date from which 
 of shares of shares  per share exercisable expiry date
 972411 1121411 220p to 4925p 080310 to 141210 080317 to 141217
 1422107 1681307 575p to 225p 130311 to 131011 130318 to 131018
 2160236 2450376 610p to 1125p 250312 to 081012 250319 to 081019
 2566803 2923421 950p to 969p 010413 to 130913 010420 to 130920
 3759097 – 540p to 582p 150314 to 041014 150321 to 041021
 10820654 8176515
options granted under the oxford biomedica long term incentive plan
 2011 2010 
 number number exercise price date from which 
 of shares of shares  per share exercisable expiry date
 1150000 2875000 1p 131011 131018
 5524000 6423000 1p 250312 250319
 5568000 6106000 1p 150613 150620
 6537000 – 1p 130414 to 070914 130421 to 070921
 18779000 18756088
options granted under individual contracts
 2011 2010 
 number number exercise price date from which 
 of shares of shares  per share exercisable expiry date
 – 3865194 430p to 510p  250502 to 250602 250511 to 250611
 32480557 35596597 oxford biomedica plc   annual report and accounts 2011 84
notes to the consolidated financial statements 
for the year ended 31 december 2011
options granted to uk employees could give rise to a national insurance ni liability on exercise for options granted 
up to october 2006 the company obtained undertakings from the holders of the relevant options to pay any 
secondary ni on exercise so there is no ni liability in respect of these options in respect of options including ltip 
awards granted from february 2007 there are no such employee undertakings so an ni liability could arise on the 
exercise of the options a provision of £4000 2010 £59000 is included in accruals for the potential ni liability accrued 
to 31 december on relevant options that were above water based on the year end share price of 350p 2010 553p  
per share 
23 share based payments
all eligible employees of the group are awarded share options or long term incentive plan ltip awards options 
granted to uk employees have been issued under the oxford biomedica 1996 no1 share option scheme “the 1996 
scheme” or its successor the oxford biomedica 2007 share option scheme “the 2007 scheme” it is the company’s 
policy under the share option scheme to make grants of options to new uk employees at approximately sixmonth 
intervals during their first three years of employment and at the discretion of the remuneration committee annually 
thereafter since the introduction of the ltip in 2007 directors and certain senior managers are not eligible to 
participate in the share option scheme but are eligible for ltip awards 
options granted under the 1996 scheme have a fixed exercise price based on the market price at the date of grant  
the contractual life of the options is seven years options cannot normally be exercised before the third anniversary  
of the date of grant for options granted to directors and to certain other employees since 2001 the options are 
exercisable only if at the time of exercise or for at least 12 months in aggregate during the three years before exercise 
the percentage increase in oxford biomedica plc’s total shareholder return since the grant of the option exceeds the 
percentage increase in the ftse techmark mediscience index 
options granted under the 2007 scheme also have a fixed exercise price based on the market price at the time  
of grant the contractual life of these options is ten years options cannot normally be exercised before the third 
anniversary of the date of grant
ltip awards made to date have been nilcost options exercisable at par on the third anniversary of the date of  
grant release of the ltip awards depends on the satisfaction of performance conditions based on comparative  
total shareholder return against a comparator group of companies the ltip awards since june 2010 also have a 
secondary milestonebased performance condition
options other than ltip awards have been valued using a blackscholes option pricing model the ltip awards  
which contain complex marketbased conditions were valued using a monte carlo model for each relevant option 
grant individual valuation assumptions were assessed based upon conditions at the date of grant the range  
of assumptions in the calculation of share based payment in 2011 is as follows 
    share options share options share options share options 
    granted 130308 granted 250309 granted 010410 granted 150311 
share options to 131008 to 081009 to 130910 to 041011
share price at grant date 680p to 2375p  608p to 1175p  910p to 950p  476p to 538p 
exercise price 575p to 2250p 610p to 1125p 950p to 969p 540p to 582p
vesting period years 300 300 300 300
total number of shares under option 2477453 2726789 2923421 3759097
expected volatility weighted average 712 752 760 747
expected life years weighted average 570 577 576 598
risk free rate weighted average 433 271 241 179
expected rate of forfeit before vesting  
weighted average 365 264 167 162
fair value per option 475p to 1479p 394p to 793p 600p to 628p 299p to 347p
  oxford biomedica plc   annual report and accounts 2011 85
    ltip awards   ltip awards 
    130308 ltip awards ltip awards 130411 
ltip awards and 131008 250309 150610 and 07 0911
share price at grant date 680p to 2375p  608p 1025p 560p to 561p
exercise price 100p 100p 100p 100p
vesting period years 300 300 300 300
total number of shares under option 8598852 7296000 6106000 6537000
expected volatility weighted average 690 600 891 838
expected life years 300 300 300 300
risk free rate weighted average 396 211 155 173
expected rate of forfeit before vesting  
weighted average 276 243 88 00
expectation of meeting performance criteria  
weighted average 78 74 83 84
fair value per option 512p to 1684p  390p 740p 393p to 405p 
before 2009 expected volatility for ltip awards was based on historical share price volatility up to the date of grant  
for ltip awards since 2009 a volatility cone analysis has been used as this approach provides better estimate of the 
mean reverting annual rate of volatility the riskfree rate of return is the yield on uk government bonds of a term 
consistent with the expected option life 
excluding the ltip awards which are exercisable at par subject to satisfaction of the performance condition the 
weighted average share price for options granted during the year was 55p 2010 95p no options were exercised  
in 2011 the weighted average share price for options exercised during 2010 was 69p the total charge for the year 
relating to employee share based payment plans was £431000 2010 £542000 all of which related to equitysettled 
share based payment transactions a reconciliation of movements in all options over the year to 31 december 2011  
and an analysis of options outstanding at the year end are shown below
 2011 2010
        weighted  weighted 
        average  average 
        exercise  exercise 
share options excluding ltip    number price number price
outstanding at 1 january    16840509 259p 16166141 283p
granted    3759097 55p 2923421 95p
expired    6134941 393p 1597892 267p
forfeited    763108 97p 469269 113p
exercised    – – 181892 69p
outstanding at 31 december    13701557 151p 16840509 259p
exercisable at 31 december    5215421 270p 9785405 372p
exercisable and where market price exceeds exercise price at 31 december – na – na
         2011  2010 
ltip awards options exercisable at par value 1p     number  number
outstanding at 1 january     18756088 17065673
granted     6537000 6106000
expired     5077088 2754003
forfeited     1437000 1661582
outstanding at 31 december     18779000 18756088
exercisable at 31 december     1150000 – oxford biomedica plc   annual report and accounts 2011 86
notes to the consolidated financial statements 
for the year ended 31 december 2011
         2011      2010
    weighted   weighted average  w eight ed   w eight ed a v er age 
    average   remaining life years  average   remaining life years
    exercise number of     exercise number of 
range of exercise prices price shares expected contractual price shares expected contractual
ltip 
exercisable at par 10p 18779000 135 135 10p 18756088 138 138
options
under 10p 69p 7393832 477 890 85p 4137680 489 913
10p to 20p 106p 2160522 333 758 110p 2578685 409 813
20p to 30p 260p 2403463 077 173 237p 4418210 127 206
30p to 40p 335p 780115 084 330 340p 877115 188 456
40p to 50p 463p 963625 087 355 452p 1466785 112 315
50p to 60p – – – – 510p 3362034 039 039
total including ltip  32480557    35596597  
24 share premium account
           2011 2010 
group and company       £’000 £’000
at 1 january        110387 110043
premium on shares issued for cash in placing and open offer     16000 –
premium on shares issued in connection with an intellectual property purchase   – 180
premium on shares issued during the year under share option schemes     – 11
premium on shares issued to settle an ip royalty liability      – 167
costs associated with the issue of shares        1632 14
at 31 december       124755 110387
25 retained losses
 group company
        2011 2010 2011 2010 
        £’000 £’000 £’000 £’000
at 1 january      117861 108113 103174 71500
loss for the year     12631 10290 15861 31674
share based payments note 23     431 542 – –
at 31 december      130061 117861 119035 103174
neither the company nor its subsidiary undertakings had reserves available for distribution at 31 december 2011 or  
31 december 2010 oxford biomedica plc   annual report and accounts 2011 87
26 other reserves
         translation merger 
         reserve  reserve total 
group      £’000 £’000 £’000
at 1 january 2011      680 14310 13630
exchange adjustments      2 – 2
at 31 december 2011      682 14310 13628
at 1 january 2010      676 14310 13634
exchange adjustments      4 – 4
at 31 december 2010      680 14310 13630
the group merger reserve at 31 december 2011 and 2010 comprised £711000 arising from consolidation of oxford 
biomedica uk limited using the merger method of accounting in 1996 and £13599000 from the application of 
merger relief to the purchase of oxxon therapeutics limited in 2007
           share 
          merger scheme 
          reserve reserve 
company       £’000 £’000
at 1 january 2011       13599 3871
credit in relation to employee share schemes       – 431
at 31 december 2011       13599 4302
at 1 january 2010       13599 3329
credit in relation to employee share schemes       – 542
at 31 december 2010       13599 3871
options over the company’s shares have been awarded to employees of subsidiary companies in accordance  
with ifrs 2 ‘sharebased payment’ the expense in respect of these awards is recognised in the subsidiaries’ financial 
statements see note 23 in accordance with ifric 11 the company has treated the awards as a capital contribution  
to the subsidiaries resulting in an increase in the cost of investment of £431000 2010 £542000 see note 13  
and a corresponding credit to reserves  oxford biomedica plc   annual report and accounts 2011 88
notes to the consolidated financial statements 
for the year ended 31 december 2011
27  cash flows from operating activities
reconciliation of loss before tax to net cash used in operations
 group company
        2011 2010 2011 2010 
        £’000 £’000 £’000 £’000
continuing operations
loss before tax     14302 11804 15861 31674
adjustment for
depreciation     336 345 – –
amortisation of intangible assets     450 699 – –
loss on disposal of property plant and equipment    – 2 – –
loss on disposal of intangible asset     – 17 – –
profit on disposal of fixed asset investment     – 36 – –
charge for impairment     3136 3949 15725 31522
finance income     144 222 – –
finance expense     8 15 – –
charge in relation to employee share schemes     431 542 – –
changes in working capital
decreaseincrease in trade and other receivables    1229 529 14 13
decrease in trade and other payables     539 4059 17 10
decrease in deferred income     4846 4363 – –
decrease in provisions     82 903 – –
net cash used in operations     14323 15289 139 175
28 pension commitments
the group operates a defined contribution pension scheme for its directors and employees the assets of the scheme 
are held in independently administered funds the pension cost charge of £329000 2010 £296000 represents 
amounts payable by the group to the scheme contributions of £40000 2010 £24000 included in accruals were 
payable to the scheme at the year end
29 operating lease commitments – minimum lease payments
the future aggregate minimum lease payments under noncancellable operating leases are as follows 
           2011 2010 
group       £’000 £’000
not later than one year       953 765
later than one year and not later than five years       2031 2802
later than five years       – 156
total lease commitments       2984 3723
total future minimum sublease payments receivable      255 749
the group leases equipment under noncancellable operating lease agreements the group also leases its laboratories 
and offices under noncancellable operating lease agreements the leases have various terms escalation clauses and 
renewal rights the figures for property leases include a redundant building in san diego usa which has been sublet 
a provision of £41000 2010 £124000 has been made for the expected rental shortfall under this lease see note 18
the company had no operating lease commitments during the year 2010 none oxford biomedica plc   annual report and accounts 2011 89
30 contingent liabilities and capital commitments
the group had commitments of £112000 for capital expenditure for leasehold improvements plant and equipment  
not provided in the financial statements at 31 december 2010 2010 £100000
31 events after the balance sheet date
in january 2012 management decided to reduce costs by making 14 oxfordbased staff redundant with effect from the 
end of february 2012 12 staff and april 2012 2 staff it was also decided to close the us office which will lead a further 
two redundancies by june 2012
32 related party transactions
identity of related parties
the group consists of a parent oxford biomedica plc two whollyowned trading subsidiaries oxford biomedica uk 
limited the principal trading company and biomedica inc and one subsidiary oxxon therapeutics limited which 
was acquired and became dormant in 2007 when its assets and trade were transferred to oxford biomedica uk limited 
biomedica inc provides services in the usa to oxford biomedica uk limited under a transfer pricing agreement 
the parent company is responsible for financing and setting group strategy oxford biomedica uk limited carries out 
the group strategy employs all the uk staff including the directors and owns and manages all of the group’s intellectual 
property the proceeds of the issue of shares by the parent are passed from oxford biomedica plc to oxford biomedica 
uk limited as a loan and oxford biomedica uk limited manages group funds and makes payments including the 
expenses of the parent company 
          2011 2010 
company transactions with subsidiaries       £’000 £’000
purchases
parent company expenses paid by subsidiary       1501 392
transactions involving parent company shares
proceeds of parent company share issues received by subsidiary     – 197
subsidiary royalty liability settled by issue of parent company shares     – 185
proceeds of subsidiary employee share sales received by parent     – 2
cash management 
cash loaned by parent to subsidiary       19934 15
the loan from oxford biomedica plc to oxford biomedica uk limited is unsecured and interest free the loan is not 
due for repayment within 12 months of the year end the year end balance on the loan was 
          2011 2010 
company year end balance of loan       £’000 £’000
loan to subsidiary       128856 110423
in addition to the transactions above options over the company’s shares have been awarded to employees of 
subsidiary companies in accordance with ifric 11 the company has treated the awards as a capital contribution  
to the subsidiaries resulting in a cumulative increase in the cost of investment of £4302000 2010 £3871000
there were no transactions 2010 none with oxxon therapeutics limited
transactions with directors and connected persons
in addition to his fees as a director up to the date of his resignation dr alan kingsman former chairman was paid  
a consultancy fee of £77083 in 2011 2010 £75000 
there were no outstanding balances in respect of transactions with directors and connected persons at 31 december 
2011 2010 none 
key person remuneration can be seen in the directors’ remuneration report on pages 53 to 58 oxford biomedica plc   annual report and accounts 2011 90
lentivector
®
 platform
oxford biomedica’s lentivector
®
 platform technology is 
an advanced lentiviral vector based gene delivery system 
which is designed to overcome the safety and delivery 
problems associated with earlier generations of vector 
systems the technology can stably deliver genes into 
cells with up to 100 efficiency and can integrate genes 
into nondividing cells including neurons in the brain and 
retinal cells in the eye in such cell types studies suggest 
that gene expression could be maintained indefinitely 
the lentivector
®
 platform technology also has a larger 
capacity than most other vector systems and can 
accommodate multiple therapeutic genes
prosavin
®
 parkinson’s disease
prosavin
®
 is a genebased treatment for parkinson’s 
disease a progressive movement disorder caused by the 
degeneration of dopamine producing nerve cells in the 
brain prosavin
®
 uses the company’s lentivector
®
 platform 
technology to deliver the genes for three enzymes that 
are required for the synthesis of dopamine the product  
is administered locally to the region of the brain called the 
striatum converting cells into a replacement dopamine 
factory within the brain thus replacing the patient’s own 
lost source of the neurotransmitter
retinostat
®
 “wet” agerelated macular degeneration
retinostat
®
 is a genebased treatment for neovascular 
“wet” agerelated macular degeneration amd and 
diabetic retinopathy dr retinostat
®
 aims to preserve 
and improve the vision of patients through antiangio
genesis blocking the formation of new blood vessels  
the product uses the company’s lentivector
®
 platform 
technology to deliver two antiangiogenic genes 
endo statin and angiostatin directly to the retina
stargen
™
 stargardt disease
stargen
™ 
is a genebased therapy for the treatment of 
stargardt disease the disease is caused by a mutation  
of the abcr gene which leads to the degeneration of 
photoreceptors in the retina and vision loss stargen
™ 
uses the company’s lentivector
®
 platform technology  
to deliver a corrected version of the abcr gene a single 
administration of the product directly to the retina could 
provide longterm or potentially permanent correction
ushstat
®
 usher syndrome type 1b
ushstat
®
 is a genebased therapy for the treatment  
of usher syndrome type 1b the disease is caused by  
a mutation of the gene encoding myosin viia my07a 
which leads to progressive retinitis pigmentosa 
combined with a congenital hearing defect ushstat
®
 
intends to address vision loss due to retinitis pigmentosa 
by using the company’s lentivector
®
 platform 
technology to deliver a corrected version of the myo7a 
gene a single adminis tration of the product could  
provide longterm or potentially permanent correction
encorstat
®
 corneal graft rejection
encorstat
®
 is a genebased treatment for the prevention 
of corneal graft rejection corneal grafting arises from  
a need to remove and replace pathology arising in the 
cornea causing ‘clouding’ although one of the most 
successfully transplanted tissues a significant number  
of grafts are rejected due to vascularisation encorstat
®
 
uses the company’s lentivector
®
 platform technology  
to deliver endostatin and angiostatin ex vivo to donor 
corneas prior to transplant in order to block vascularisation 
and to prevent graft rejection
glaucomagt chronic glaucoma
glaucomagt is a genebased treatment for the 
treatment of chronic glaucoma  chronic glaucoma 
results from a partial blockage within the trabecular 
meshwork of the eye the tissue mainly responsible for 
draining the internal fluid of the eye aqueous humour 
as the aqueous humour builds up it causes increased 
intraocular pressure which can damage the optic nerve 
and lead to permanent patches of vision loss or in some 
cases blindness glaucomagt uses the company’s 
lentivector
®
 platform technology expressing a cox2 
gene and a pgf2a receptor gene in order to reduce 
intraocular pressure and minimise the risk of disease 
progression
monudin
®
 motor neuron disease
monudin
®
 is a genebased treatment for motor neuron 
disease this progressive usually fatal neurodegenerative 
disease is caused by the degeneration of motor neurons 
the nerve cells in the central nervous system that control 
voluntary muscle movement monudin
®
 uses the 
company’s lentivector
®
 platform technology to deliver  
a neuroprotective gene vascular endothelial growth factor 
vegf to prevent further degeneration of the motor 
neurons and potentially restore motor function
technology and product glossary
key
platform technology
product  oxford biomedica plc   annual report and accounts 2011 91
5t4 tumour antigen
the 5t4 tumour antigen is a unique protein found on 
most common types of solid cancer it is potentially a 
valuable target for novel anticancer interventions given 
its restricted expression in normal tissues and its high 
prevalence on the surface of both primary and metastatic 
cancerous cells the 5t4 tumour antigen was identified 
through research into the similarities between the 
development of the placenta during pregnancy and the 
progression of cancer 5t4 is produced by both cancerous 
cells and also by placental and foetal cells suggesting 
that the process of immunological escape in pregnancy
and cancer is based on similar mechanisms
trovax
®
 mva5t4 cancer
trovax
®
 is a therapeutic vaccine that stimulates the 
immune system to destroy cancerous cells expressing  
the 5t4 tumour antigen which is present on most solid 
tumours the product is based on an attenuated modified 
vaccinia virus ankara mva engineered to deliver the 5t4 
antigen vaccinia viruses are commonly used as delivery 
systems for the development of antigenspecific vaccines 
mva is the vaccinia strain of choice because of its 
excellent safety profile
targeted antibody therapy cancer
the 5t4targeted antibody therapy is a humanised 
mono clonal antibody linked to the potent anticancer 
agent calicheamicin the product binds to the 5t4 
antigen on the surface of cancerous cells once bound 
the complex is internalised by the tumour cell the 
calicheamicin is released from the antibody and the  
free drug kills the cancerous cell
antiangiogenisis
the creation of new blood vessels known as angio 
genesis is a critical element in tumour formation and 
growth endostatin and angiostatin were discovered 
by one of the best known researchers in the field of 
angiogenesis dr judah folkman of children’s hospital 
and the harvard medical school in boston the proteins 
have shown potent anticancer activity in preclinical 
models and a potentially additive effect when used 
in combination
endoangiogt cancer
endoangiogt is a gene therapy for the treatment of solid 
tumours the product uses a viral vector to deliver the 
genes for endostatin and angiostatin which inhibit tumour 
growth by blocking the formation of new blood vessels
hi8
®
 primeboost
heterologous primeboost immunotherapy involves 
priming the immune system to target an antigen 
using one vector and then boosting the response 
by adminis tration of the same antigen using a different 
vector in many cases this can elicit immune responses 
of greater magnitude and breadth than can be achieved 
by priming and boosting with the same vector oxford 
biomedica’s hi8
®
 primeboost technology can stimulate 
potentially potent and specific cellular immune responses 
against diseased cells even those expressing very low 
levels of the antigen
hi8
®
 mel melanoma
hi8
®
 mel is a therapeutic vaccine for metastatic 
melanoma the product uses two different vector  
systems one based on plasmid dna and the other  
based on modified vaccinia virus ankara mva to  
induce a mela nomaspecific cellular immune response 
both vectors contain the mel3 polyepitope string  
which encodes seven defined peptides from five  
different melanomaspecific antigens
gdept
genedirected enzyme prodrug therapy gdept is 
the use of genetic delivery to administer an enzyme into 
diseased cells that can activate a nontoxic prodrug into 
a toxic agent cyclophosphamide cpa is an anticancer 
prodrug that is activated in the liver by the naturally 
occurring enzyme p450 and then disperses via the 
circu lation to the tumour target
metxia
®
 pancreatic cancer
metxia
®
 is a gdept strategy to deliver a p450 enzyme  
to cancerous cells enabling cyclophosphamide cpa  
to be activated within the tumour metxia uses a highly
engineered retroviral delivery system to achieve efficient 
expression of a specific p450 enzyme within the cancerous 
cells it can be administered locally to nonresectable 
pancreatic cancer prior to treatment with cpa oxford biomedica plc   annual report and accounts 2011 92
financial adviser and broker
singer capital markets 
one hanover street 
london w1s 1yz
financial and corporate 
communications
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independent auditors
pricewaterhousecoopers llp 
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reading rg1 1jg
solicitors
covington  burling llp 
265 strand 
london wc2r 1bh
registrars
capita registrars 
the registry 
34 beckenham road 
beckenham 
kent br3 4tu
company secretary 
and registered office
tim watts 
oxford biomedica plc 
medawar centre 
robert robinson avenue 
the oxford science park 
oxford ox4 4ga
advisers this report has been designed  
and produced by thinkerdoer  
using the thought processing
®
 
proprietary brand and message  
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wwwthinkerdoercouk
credits
feature portrait and location 
photography by philip gatward
wwwphilipgatwardcom
lower photograph on page  
15 tipin sheet by lee mawdsley
wwwleemawdsleycouk 
photograph on page 30 by  
john cairns courtesy of foundation 
fighting blindness
wwwjohncairnsphotographycouk
wwwblindnessorg
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® 
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wwwfscukorg oxford biomedica plc   annual report and accounts 2011 94
oxford biomedica plc
medawar centre
robert robinson avenue
the oxford science park
oxford ox4 4ga
united kingdom
tel 44 0 1865 783000
fax44 0 1865 783001
oxford biomedica  
manufacturing facility
harrow house
county trading estate
transport way cowley
oxford ox4 6lx 
united kingdom
tel 44 0 1865 785300
fax44 0 1865 785301
wwwoxfordbiomedicacouk
enquiriesoxfordbiomedicacouk


Summary:
 financial highlights
1
12
10
08
06
04
02
0
2010
revenue £m
•   o cular
•  primeboost
•  other
2011
10
08
06
04
02
0
2011
research and development £m
•   ext er nal
•  internal
•  amortisation
•  impairment
2010
12
1
08
06
04
02
0
02
04
06
08
1
2010
cost of sales £m
•    r o y alties
•  license credit
2011
oxford biomedica plc  annual report and accounts 2011 32
£20m
fundraising of £200 million  
before expenses completed  
on 10 january 2011
£143m
net cash
3
 of £143 million 
2010 £123 million
£178m
research and development 2011  
£17 8 million 2010 £199 million  
including £31 million exceptional  
impairment loss 2010 £39 million  
impairment loss
£77m
revenue 2011 £7 7 million  
2010 £112 million
£126m
net loss after exceptional items 
of £126 million 2010 £103 million
£165m
net cash burn
2
 of £165 million 
2010 net cash burn £130 million
1 audited financial results
2  net cash used ingenerated from operating 
activities plus sales and purchases of noncurrent 
assets and interest received
3  cash cash equivalents and available for  
sale investments