Oxford Biomedica plc (OXB.L) Earnings Call Transcript & Summary

Hello, and welcome to the OXB's 2025 Interim Results Presentation. We are joined today by Dr. Frank Mathias, Chief Executive Officer; Dr. Lucinda Crabtree, Chief Financial Officer; and Dr. Sebastien Ribault, Chief Business Officer. [Operator Instructions] I would now like to hand the call over to Dr. Frank Mathias. Please go ahead.

Good afternoon, everyone, or good morning, depending where you are. So for those on the other side of the ocean, good morning, and thank you for joining us for OXB's 2025 Interim Results Presentation. It's a pleasure to be with you today virtually this time. With me today, as already said, is our Chief Financial Officer, Lucy Crabtree, who came on board just over a year ago and quickly established herself as an integral part of the team. And with our Chief Business Officer, Sebastien Ribault, who plays a key role in driving our commercial progress. Next slide, please. So here, obviously, is our legal disclaimer. As always, as a quick reminder that today's presentation includes forward-looking statements. The details are here in the disclaimer. Please go to the next slide. So let me begin by outlining today's agenda. I will start with an overview of the key achievements over the period, highlighting the steps we have taken this year to further cement OXB's position as a leading global cell and gene therapy CDMO. I will then hand over to Sebastien to provide an update on our strong commercial performance, and then Lucy will take us through the group's financial performance. I will finish the presentation with some closing remarks, after which there will be a Q&A session. So please, next slide. So the first half of 2025 has been a period of strong delivery for our company, driven by sustained high demand for our CDMO services across all vector types. Our performance in the period has also led a few days ago to our inclusion in the FTSE 250 Index, which, in my view, reflects the progress we have made in building a stronger and more resilient company. Building on the growth seen in 2024, revenues continued to grow in the first half of the year, increasing by 44% to GBP 73.2 million. Meanwhile, contracted clients' orders grew by 166% year-on-year to GBP 149 million, providing us with clear revenue visibility. This growth has been driven by several factors, including increased lentiviral vector manufacturing for clients in clinical development as well as those preparing for late-stage or commercial activities. Thanks to the growing revenues and careful cost management, we also achieved a significant improvement in profitability. Our EBITDA loss narrowed significantly by GBP 12 million to GBP 8.3 million for the period compared to a loss of over GBP 20 million for the same period in 2024. Turning your attention to the operational side of the business. We continue to deliver operational excellence by further aligning operations and driving manufacturing optimization across the U.K., U.S. and France. This has resulted in improved efficiency and agility, strengthening our ability to respond to client needs across geographies. In line with our multi-vector, multi-site strategy, we started to transfer our AAV vector platform to France. Process development and pilot manufacturing capabilities for AAV are now available for clients in France with transfer of GMP capabilities targeted for completion by the first half of 2026. Similarly, in the U.K., additional lentiviral GMP manufacturing capacity is also due to be added by the first half of 2026, following strong demand for both manufacturing and development services. To support the growing number of late-stage client programs, we bolstered our balance sheet with a new debt facility of up to USD 100 million and an equity placement of GBP 60 million in this case, post-period in August. We will strategically invest this added financial flexibility to strengthen our CDMO network globally including commercial stage AAV manufacturing and fill and finish capabilities in the U.S. This impressive first half year performance, combined with our robust balance sheet, underpins our reiterated full year 2025 guidance and supports our medium-term outlook for sustained growth and profitability. Next slide, please. The reason OXB continues to succeed is clear. We combine differentiated capabilities with a proven track record of delivering and unmatched expertise in viral-vector manufacturing. For now more than 30 years, we have been driving innovation in vector design, process optimization and large-scale manufacturing and our track record speaks for itself, about 1,000 successfully released GMP batches, more than 40 client programs currently, 30 INDs and 65 successful audits worldwide. Add to this, our highly experienced business development team, very talented scientific professionals throughout the company, state-of-the-art facility, scalable platforms and a global footprint in key biotech hubs, and we are all well positioned to meet the complex development and manufacturing needs of our clients. Next slide, please. Building on the previous slide, here, you can see the scale of our global viral-vector CDMO network strategically located across leading biotech hubs in the U.K., U.S. and France. This footprint not only places us close to our clients in their end markets, but also provides resilience against tariff pressures, regulatory shifts and other external headwinds by balancing capacity across regions. As mentioned earlier, we raised GBP 60 million to strengthen this network with funds to be directed towards expanding our U.S. AAV commercial capabilities and targeted investment across the network to enhance quality, productivity and yield, all to meet growing client demand. I would now like to hand over to Sebastien, who will provide an update on our commercial pipeline and the market dynamics that continue to support our business. Please, Sebastien.

Thank you, Frank. Good morning, good afternoon, everyone. We can move directly to Slide #8 and talk about the market situation to start. [Audio Gap] pre-registration have increased. The most impressive, at least for me, is to look at the last three categories, the Phase II, the Phase III and the pre-registration. The Phase II programs have moved from slightly shy of 280 to 330, which means an additional 50 programs in Phase II for cell and gene therapy. Likewise, Phase III is moving from 34 to 45 and pre-registration from 5 to 13. It seems like it's a small increase, but it's a growth that is above 200%. That is the reason why we continue to see a strong momentum all around the world in the number of CGT programs. The programs have progressed through Phase I through Phase II, and they are now either entering Phase III or being at pre-registration phase. Looking at the right side of the slide, we see that 10 to 12 CGT approvals were expected in 2025 across U.S. and Europe and a number have already been approved as you can see here. It's always difficult in the case of Oxford Biomedica to talk about CGT, because although we are a CGT company, we're specialized in viral-vector manufacturing and some programs can be cell therapy only as we have listed one here, Zemcelpro from ExCellThera, is a cell therapy program only that does not require viral vectors. Still, the trends are directly applicable to the OXB business. And if we move to Slide #9, the growth of the market is the same growth that we enjoy when we look at the order value for Oxford Biomedica. Starting on the left side of the slide, we had signed GBP 56 million of orders at the end of H1 last year, and we have signed GBP 149 million at the end of the first semester of this year, corresponding to 166% growth. It's a very significant increase. And if we look now on the right side of the slide, how this translates in terms of pipeline value, we try to indicate here what the pipeline situation was at the end of H1 2024. So you see the pipeline by category of vector, and we've listed here the lenti pipeline in pink, the AAV pipeline in green and all other vectors in dark blue. At the end of H1 2024, the pipeline was around $570 million. We've added on top what we had signed at the end of H1 since the pipeline variation are due to what enters new opportunities, but also what exits the pipeline, meaning the orders we signed, if there are orders, there are not any more opportunity. It means that the total volume of opportunities that we had handled in H1 2024 was up to $642 million. Doing the same exercise at the end of H1 2025, you see that the sum of the opportunities, which were at $541 million for what stays in the pipeline at the end of H1, plus what we had signed was giving us a value of $732 million, plus 14% compared to last year. That plus 14% compared to what we have seen on the previous slide, which was 7% year-on-year growth of all the programs accumulating preclinical Phase I, II, III and pre-registration shows that OXB is growing above market. Not a big surprise, and I often hear that there is an excess of capacity, indeed physical capacity, but there is a gap in the number of experts available for the late-stage activities. And that's where OXB has a value. And that's the reason why lenti remain a key driver of our pipeline today, although the AAV value is significantly increasing from $91 million last year to $150 million this year. Moving now to Slide #10. It illustrates how the OXB strategy had an impact on the type of contract that we signed. Our clients are happy with OXB. We see it through the customer satisfaction and more than 80% of the signed contracts are from existing clients, reflecting not only the satisfaction, but the fact that they progress through late-stage activity, as you'll see in one of the next slide, but let's stay on this one for a couple of more minutes. We have a lot of new clients in the AAV space, something that we've not pictured on the slide here. But in H1, 100% of the contracts from new clients were AAV contracts. That reflects the strong growth we have seen in the pipeline, but also the fact that OXB is not seen only as a lenti company now, but as a lenti and AAV and other vectors companies as we have defined it in the One OXB strategy. We didn't want to diversify only in terms of vectors, but by geography as well. And if in the past, the North American clients were 80% to 90% of that geographical split. Today, it's 60% with a significant share for EMEA and for Asia Pacific, which shows that people understand that we're now operating as a global company that can deliver at the minimum two vectors per site. Moving to the next slide. You'll see the evolution that we decided to show you over 3 years. In each category, preclinical and development, early stage, late-stage and commercial activities, you have at the bottom in gray, the bar that corresponds to the number of programs on which we were working in September 2023. And at the top, you see in dark blue, the number of programs that we are running in September 2025. We have 25 preclinical and development programs in 2023. 14 today. But if you go to the category just below early-stage clinical, you see that we have 23 early-stage clinical to be compared to 14 only in September 2023. What does that mean? It means that many of our clients who were at feasibility stage have progressed into Phase I and stayed with us. That's why we see an increasing number of programs. Good for the company. After feasibility, we develop the process and we make the GMP manufacturing for Phase I or for Phase II. The biggest increase we've seen is in the third category covering late-stage clinical, meaning Phase III activity, one late-stage program only in September 2023 versus five programs in September 2025. They are corresponding to BLA filing expected between the end of this year, Q4 2025 and the first half of 2026, which will clearly change the number of programs that we have in commercial for OXB next year. We see today that we are running two commercial programs versus one in September '23. That number is going to increase significantly as our clients' clinical data are extremely positive. And we're already discussing with them the capacity that they need for 2026 and beyond, even 2027 numbers are actively discussed at the moment. Moving to Slide 12. That will be my last slide before I hand over to my colleague, Lucy. That explains the reason why we have raised GBP 60 million recently to strengthen our global CDMO network. They are strong CGT market fundamentals, as we've seen on my first slide. The number of programs keeps increasing and is increasing faster in the later stage of the activities. We have the client demand and the pipeline continues to grow. And the U.S. situation is such that we need to continue to build infrastructure in U.S.A., not only for AAV that today is fueling the growth, but in the future for lenti vector manufacturing as well. We listed very clear investment priorities. We want to continue that acceleration of revenue and margin improvement. We want to add commercial scale, GMP capacity in the U.S. That was the plan as of last year. It's still the plan this year, and we're working on the plan to make it happen very soon. And last but not least, strengthen the global CDMO network so that we can deliver all vectors from everywhere and strengthen our competitive position in the global viral vector market. Lucy, the stage is yours.

Thank you, Sebastien. So turning to Slide 14 now, please. So I'm delighted to be speaking to you today on OXB's H1 2025 financial performance. Now precisely a year into the role, I've gained a clear perspective on the strength of the business and the exceptional team behind it. Today's results underline that strength, delivering another strong set of numbers, which I'll take you through now. Looking at the left-hand side of this slide, you'll see that we delivered exceptional growth in the first half of the year. Total revenues increased by 44% to GBP 73.2 million, a significant jump from the GBP 50.8 million in the first half of 2024. This builds on the positive momentum we saw in 2024, driven by strong demand from clients, including an increase in late-stage program activity. This included strong revenues from GMP batch manufacturer, which saw an increase in the number of batches manufactured for clinical clients and for clients preparing for commercial launch. As a result, revenue generated from manufacturing services increased by 25% to GBP 34.4 million. Development Services also delivered solid growth with revenues up 48% to GBP 28.5 million, supported by an increase in revenues from process characterization and validation work. Focusing now on our commercial KPIs, which highlight continued momentum across the business. The contracted value of client orders signed during the first half of 2025 totaled approximately GBP 149 million compared to GBP 56 million for the 6 months ended 30th of June 2024. This includes signed orders with binding forecast from clients preparing for late-stage and commercial activities, representing more than half of orders and providing strong visibility for the remainder of 2025 through to early 2027. The order book has continued to grow since the period end with total signed orders reaching GBP 190 million for the 8 months ended 31st of August. Revenue backlog was approximately GBP 222 million at the 30th of June, increasing to GBP 241 million by the end of August. This represents contracted future revenues from current orders and provides a strong indicator of client demand and revenue visibility. We closed the period with a solid balance sheet, holding cash of GBP 53.9 million and GBP 17.1 million in net cash. As Frank and Sebastien highlighted, client demand continues to grow. And to meet this, we proactively strengthened our financial position post period through an approximately GBP 60 million equity placing and a new 4-year $125 million loan facility with Oaktree. This ensures we are well capitalized to support growth and deliver for our clients, particularly in the U.S. as set out by Sebastien earlier. Turning to profitability. Operating EBITDA improved materially to a loss of GBP 8.3 million compared with a loss of GBP 20.3 million last year, driven by higher revenues and a continued focus on cost control. On a constant currency basis, the operating EBITDA loss would have been GBP 3.9 million. With an excellent start to 2025 and the progress we have continued to make, we are firmly on track for sustainable profitability for the full year 2025. Stronger revenues, disciplined cost management and the significant improvement in operating EBITDA performance position us for sustained growth through the rest of the year and reinforce confidence in our medium-term outlook. Next, on Slide 15, I'd like to take a closer look at our cash position. As mentioned earlier, we closed the period with cash of GBP 53.9 million. Here, I'd like to mention again that we strengthened the balance sheet considerably post period with a circa GBP 60 million equity placing and a new 4-year loan facility of up to $125 million, taking us to a much improved cash position of GBP 113.7 million at the 31st of August. Returning to H1 2025 cash flow movements. Operating cash outflow reduced significantly to GBP 4.8 million compared with GBP 48.6 million for the first half of 2024. This improvement was driven by stronger operating performance, disciplined cash management and enhanced working capital practices, including receipt of batch deposits and upfront client payments. We are now very well placed to fund strategic investments and deliver in line with client demand. The strengthened balance sheet and improved cash generation give us the financial flexibility to expand our global CDMO network and to execute on our medium-term growth plans. Next, moving to Slide 16, our financial guidance, which was given at the time of announcing the placing in August, whereby we upgraded our medium-term guidance. Proceeds from the placing will support planned strategic investments to strengthen the group's global CDMO network and are expected to accelerate revenue and margin growth. In the near term, for 2025, we expect revenues of GBP 160 million to GBP 170 million and low single-digit million pounds operating EBITDA profitability on a constant currency basis. For 2026, we expect revenues of GBP 220 million to GBP 240 million, representing circa 35% to 39% CAGR for 2023 to 2026. Longer term, we expect to outperform the broader market with revenue growth of 25% to 30% year-on-year for 2027 and 2028. We will maintain cost discipline and expect margin expansion as capacity utilization builds, including strategic investments, we are targeting operating EBITDA margins of more than 10% in 2026 and at least 20% in 2027 with long-term potential to approach around 30% within 5 to 6 years. Two factors underpin our confidence in this outlook. First, visibility. We ended June with a revenue backlog of about GBP 220 million, rising to GBP 241 million by the 31st of August. A high proportion of first half signed orders are backed by binding client forecasts. And for 2025, we already have over GBP 171 million of revenues covered by contracted orders compared to GBP 106 million at the same time last year. The second factor underpinning our confidence is capacity and capability. Our planned investments, particularly in the U.S., are designed to come online in time to support late-stage and commercial programs, enhancing end-to-end service for existing and potential clients. This supports both top line growth and operating leverage. On capital expenditure, we expect approximately GBP 60 million in aggregate across 2026 and 2027 before moving to steady-state CapEx of approximately GBP 20 million to GBP 25 million per year thereafter, deployed with discipline across our global network. In summary, we have delivered another set of strong financial results. OXB's strong market position, rising client activity and a high-quality client portfolio, together with a strengthened balance sheet, provide a solid platform for sustainable growth in 2025 and beyond. With that, I will now hand back to Frank.

Thank you, Lucy. Very impressive figures. Let's move to Slide 18, please. And before we go to our closing summary, let me take just a moment to remind you of the vision, mission and values that underpin our strategy and guide how we work at OXB. Our vision is to transform lives through cell and gene therapies. Our mission is to enable our clients to deliver these therapies to patients, and our strategy is to lead the viral vector CDMO field as a trusted partner recognized for quality and innovation. All this is based on our values, responsible, responsive, resilient and respect, the 4 Rs of our DNA, as we call them. They shape now how we work with one another, with our clients, and they have enabled us to deliver consistently in a complex and evolving sector to build long-term value for patients first, for our clients and for our shareholders. Next slide, please. Turning now to the final slide. I want to leave you with a brief summary of our progress during the period and how we see the outlook for OXB. In the first half year, OXB delivered strong commercial and operational progress driven by sustained demand for our CDMO services across all vector types. While lentiviral programs remain the core of our clinical and commercial work, an increasing proportion of our contracts and clients' interest relate to AAV and other vector types, which broadens our growth potential. With a strong order book and expanding pipeline and increasing number of cell and gene therapy molecules in development worldwide, we are confident in sustaining momentum in growing our client portfolio. And to meet this growing demand and deliver on our growth objectives, we have strengthened our balance sheet through the GBP 60 million placing and new loan facility, providing the flexibility to expand global manufacturing capabilities. None of the significant progress we have outlined today would be possible without the unwavering commitment and resilience of the team working with us, whose expertise and energy continue to drive our success and help us deliver on our strategy. As I draw this presentation to a close now, I want to reiterate that I'm confident that OXB is well positioned to deliver sustainable above-industry growth and long-term profitability. With good revenues visibility, we remain fully on track to reach EBITDA profitability in 2025 and achieve significant revenue growth consistent with our medium- and long-term guidance. Now I would like to open the session to Q&A and take any questions you might have. So operator, please open the line.

[Operator Instructions] The first question today comes from the line of Charles Weston from RBC.

I have two, please. The first is just on visibility. It looks like you haven't the orders this year to effectively meet the top end of your range. So it's more about execution. I was wondering about 2026, though. You've got this revenue backlog of GBP 222 million at the half year with, say, GBP 90-or-so million to come out of that in the second half revenues. And then you've also been signing additional client orders. So I was just wondering if we can do some math on that and figure out roughly what proportion of 2026 revenues you already have covered in your orders? And my second question, please, is just on the prepayments. There was a big step-up in H1. Clearly, that's going to unwind in 2026. But as you see more clients ordering commercial batches, perhaps others will do prepayments as well. So is that a sustainable step-up? Or should we model that unwinding in 2026?

Thank you, Charles. So why don't we start with sustainable -- the second question on sustainability of the orders, Sebastien, and then go into visibility.

Yes. Let's start with sustainability. We do not expect that our clients preparing for a commercial launch will decrease the volume that they need in '26 compared to '25, '27 compared to '26 and so on. So the sustainability is not a question of modeling. It's a question of forecasting, which for me is different. The model is based on assumption. The forecast is based on real data communicated by our clients, which are not assumptions. I mean, they are solid numbers of patients that they need to treat that are -- and this number is translated into a number of batches on which we need to execute. So we have clear visibility on what they want to sign before the end of the year to make sure that it's executed next year. And as I mentioned during my presentation, we already have discussions about capacity needs for 2027, because when we're talking about future commercial products, there is a need to forecast to make sure that all patients are treated in a timely manner. So except major clinical issue at the very last minute that would completely change the positive view we have on their clinical data now, sustainability for me, I mean, I'm confident saying that this is sustainable. It's also sustainable because, as indicated, we're growing in all the segments and not only as we were in the past only in the lentivector space, but today, lenti-AAV, MVA, adeno and so on. So considering that the pipeline value is not going down, but it's been going up as we've seen, I don't see any reason why it would not be sustainable. Talking about mathematics, not something I'm going to be able to do today, because the figures you've seen here are the figures at the end of H1. And these figures have changed quite a lot. We're going to be at the end of Q3 in a week from now. So we've signed more. The only comment I will make is that we're confident enough in 2026 to start working on the plan for H2 '26 and H1 2027, meaning that we're actively working with our teams and with our HR business partners to build the people plan for execution in H1 2026. So we booked enough to be confident for next year.

Can I just -- sorry, just to clarify, the question I was asking was more about the sustainability of the prepayment. So should we just -- should we assume that as you get more launches, commercial preparation batches, you'll see further prepayments from customers?

We don't have anything in our contract that we call a prepayment. And each contract being unique, we have clients that are extremely prudent and we want to make sure that they have slots or suites reserved. So it's not a prepayment. It's a reservation, which is different. You don't prepay for the activity. You block capacity. It's a different mechanism. Not all the clients have this level of prudence. So I think that with the clients who have already made the decision to block capacity for the future years, that will continue. Some others want to continue looking at the last minute, facing situations where sometimes they don't access the slots that they wanted. I hope they will be more prudent in the future. But if I look from a commercial perspective, and I'm sure that Lucy will be able to add on the financial side. But contractually speaking, I think it's wise for people going to commercial scale to have a reservation mechanism in place and make sure that they have no problem of supply. Financially, I'll leave it to Lucy.

Yes, Charles, I mean, I suppose what you're asking here is around the contract liabilities. And I think based on our expectations looking into 2027, I think the answer is likely yes, in terms of the pure impact of what you're talking about, the balance sheet impact of contract liabilities or vis-a-vis the prepayments and our ability to sort of invoice more upfront as well from a cash perspective.

The next question comes from the line of Julie Simmonds from Panmure Liberum.

I was just wondering, you're talking more about, sort of, more and more about global market and global customers. Is the current footprint sufficient to do that, particularly looking at the proportion of customers from the Asian regions?

Sebastien, I believe that's a nice question to you. You'll like this question.

Absolutely. Yes, it's not that much about where the client is. It's about where we can execute for the project. In my experience, I mean, at OXB and even before OXB, most of the clients in Asia Pacific, to talk specifically about this geographical segment are actually quite happy having the activities run from Europe or from the U.S. depending on where they are in Asia. The footprint as of today is sufficient to execute projects in the U.S., in U.K. and in France. We did not have specific demand for execution directly from Asia. There are countries and China is very well known for that, where it's in China for China. And that's the reason why we've not aggressively pursued opportunities in China, but for the other countries where we work, Japan, Korea, Australia and so, the network is sufficient today. And looking at the capacity we have left, it will be sufficient next year and even the year after, depending on how fast we grow, we may want to relook at the situation in 2028. But as of now, the infrastructure is largely sufficient.

The next question comes from the line of Christian Glennie from Stifel.

Just on the late-stage clinical programs you're working on, you said five today. Is it possible to say how many of those you already -- the company already has their late-stage clinical data in hand? And did you say that all five of those, obviously, barring successful development would expect to file by the first half of next year? That's the first question.

I think that three out of the five have clinical data, interim clinical data, not final yet. Yes, I think the right number is three. And I expect that three, potentially four will have filed before the end of H1 next year. Number five will probably be later in the year, probably Q4 next year, if not early 2027.

And then maybe, I mean, you've sort of hinted at this on the visibility. It sounds like you've got reasonable cover for '26, and you're talking into '27. But I guess just a bit more on your confidence on that 25% to 30% continuing through '27, through '28, just a bit more that underpins that sort of level of confidence, particularly in the sort of 28% range.

Sebastien?

Commercial projections. When people today work with us on the Phase III and they are interim data, keep in mind that the Phase III is going to be three batches for process validation. So when they plan 10, 20, sometimes 50 or above batches, we're talking about 5 years projection. So based on their projections, we built our guidance up to 2028. So yes, I mean, purely projections in number of patients and associated batches plus a continued growth of the market like we've seen over the past many years now. So yes, it's a simple mathematic exercise here.

Just to clarify, so largely of, what you -- the current programs and the current customers that's driving a large part of that even in '28?

Yes. I'm not talking just about the last category. I'm talking about all categories. We have -- we already have visibility on which Phase I are very successful and what they will want to do over the next years, plus indeed the late-stage activity that will move to the commercial space relatively soon, plus new programs. But that's -- for the new programs, it's based on the pipeline. So opportunities for the majority of the capacity utilization that we project for the future is based on existing programs that are with us today.

[Operator Instructions] The next question comes from the line of Zain Ebrahim from JPMorgan.

This is Zain Ebrahim from JPMorgan. My first question is just, I think you said that some of the new clients, I think 100% of the new clients are AAV. So just if you could remind us what percentage of the business at the moment is AAV. And I think in the space in general, we've seen cases of acute liver failure from some companies. So just to remind us why -- what differentiates your AAV platform from the likes of Sarepta would be helpful. Just as the first question.

Sebastien?

Yes. First, I'm going to start with something that I think we must keep in mind. AAV is not one vector like lenti. There is indeed one lenti, but there are multiple AAV, AAV2, AAV5, AAV8, AAV9. So when we're talking about Sarepta, we're talking about one AAV serotype in one indication. The market is not Sarepta. Sarepta is not the market. Sarepta is one indication in the middle of tens of indications. We see a fantastic progress in the ophthalmology space, for example. These vectors have nothing to do with the Sarepta vectors. So I understand the question around AAV. I think that what we should discuss should be AAVs. Because that's where we make sure that in our pipeline and in our portfolio of ongoing program, we've diversified the program to make sure that we're not in the situation where we're exposed to one type of vector only. We don't do just AAV9. We do all the AAVs. And the team has experience on 12 different serotypes at the moment, if I remember properly, the numbers that we discussed recently over more than 10 different indications. Again, Sarepta is one serotype in one indication. So we're not different from the other CDMOs in that. I know that Sarepta is making the headlines, but there are many companies that are not making the headlines and progressing very nicely in the AAV space, including for muscular dystrophy, including with serotypes, either wild-type or modified capsid that show less toxicity than others. And that's part of the technical data that we're discussing with our clients. We see multiple AAVs progressing well without any associated toxicity. And I think that's, I mean, quite well understood by the scientific community on why some serotypes have more toxicity than others and that there is still a need to select better the serotypes, including modifying the capsid in some cases to work with hybrid capsids. I said 100% of the new clients indeed were AAV in H1, which doesn't mean that we didn't sign lenti programs, but the lenti programs were not coming from new clients. They were coming from existing clients. I just want to clarify that we signed contracts in all the different spaces, but the new contracts were AAV. Only that reflects the growth that we continue to see in the AAV space. How much in percentage, Lucy will correct me if I'm wrong, but I don't think we've ever disclosed how much business we were doing by Vector segment.

That's very helpful. One other question would just be on the 2025 guidance. So you said that you've got GBP 171 million of coverage for revenues this year, where your guidance is GBP 160 million to GBP 170 million. So just to help us understand the range in the guide that you've maintained today given that the contracted value does seem to suggest that you could maybe deliver towards the upper end?

Lucy?

So clearly, our guidance is subject to revenue performance obligations. And in short, Zain, it would be remiss of us not to take into account some element of operational execution risk.

There are no further questions. So I hand you back over to Dr. Frank Mathias to conclude today's conference.

Thank you so much. So this indeed brings us to the end of our today's presentation. I want to thank all of you for your time today. We appreciate your continued support and look forward to keeping you updated on our progress throughout the rest of the year and beyond. Thank you so much. Have a good rest of the day.