Oxford Biomedica has officially confirmed it is in preliminary discussions with the Swedish private equity giant EQT regarding a potential cash takeover. The announcement follows significant market speculation and a sharp rise in the company’s share price on January 14, 2026. While the board of the cell and gene therapy specialist acknowledged the interest, it noted that EQT has previously approached the company before which had been rejected because they significantly undervalued the company and its future prospects.
The potential acquisition comes at a time of rapid growth for the UK based contract development and manufacturing organization. Oxford Biomedica has established itself as a global leader in viral vector production, providing the essential delivery mechanisms for some of the world’s most advanced therapies. Recent financial reports (H1 results) highlighted a 44% surge in first half revenues and a doubling of its contracted client orders, making it an attractive target for private equity firms looking to capitalise on the scaling cell and gene therapy sector.
Beyond its domestic success, the firm has been aggressively expanding its footprint in the United States, specifically through its high capacity manufacturing sites in Boston. This geographical diversification is a key pillar of its strategy to become a pure play cell and gene therapy partner for global pharma. Analysts suggest that EQT’s interest is driven by this unique infrastructure, which is difficult and time consuming to replicate from scratch.
Under the rules of the UK Takeover Code, EQT now has a deadline of February 11, 2026, to either announce a firm intention to make an offer or walk away from the deal. Shareholders have been advised to take no action at this stage, as there is no certainty that these preliminary talks will lead to a formal offer. Industry observers believe that any successful bid would need to offer a significant premium to reflect the company’s pivotal role in the global biotech supply chain.
Why This Deal Matters for the Life Sciences Sector
The interest from EQT underscores a broader shift in how investors are valuing life sciences infrastructure companies versus traditional biotech developers. While drug discovery firms remain exposed to clinical and regulatory risk, specialist manufacturers like Oxford Biomedica occupy a more resilient position in the value chain, generating recurring revenues from multiple customers across therapeutic areas. This model has become increasingly attractive to private equity as volatility persists across public biotech markets.
Oxford Biomedica’s focus on viral vector manufacturing places it at the heart of the rapidly evolving gene therapy ecosystem. As more therapies progress from early clinical stages toward commercialisation, the industry faces a structural bottleneck in scalable, compliant manufacturing capacity. Companies with proven track records, regulatory expertise, and established facilities are therefore commanding premium strategic interest, and are difficult to replace quickly through organic build-outs.
A successful takeover could also have wider implications for the UK biotech landscape. Oxford Biomedica is one of the country’s most established cell and gene therapy champions, and its potential move into private ownership would highlight the growing role of global private equity in shaping Europe’s biotech manufacturing base. Some analysts believe this could accelerate further consolidation among CDMOs as sponsors seek to assemble end-to-end platforms capable of serving large pharmaceutical clients.
From EQT’s perspective, taking Oxford Biomedica private could allow for longer-term capital investment without the pressure of quarterly public market expectations. Expansion of capacity, operational optimisation, and bolt-on acquisitions could be pursued more aggressively under private ownership, potentially strengthening the company’s competitive position ahead of the next wave of commercial gene therapy launches.
Ultimately, this situation is one to watch not only because of the potential transaction itself, but because it reflects deeper trends reshaping the life sciences industry: the maturation of gene therapy, the strategic value of manufacturing infrastructure, and the increasing willingness of private equity to make large, conviction bets on the sector’s long-term growth.
Key Takeaways
- Official Confirmation: Oxford Biomedica has entered preliminary talks with Swedish investor EQT for a potential 100% cash acquisition.
- Prior Rejections: The board previously dismissed multiple unsolicited bids from EQT, citing that they significantly undervalued the company’s long term potential.
- Strong Financial Momentum: The bid follows a stellar year where revenues grew 44% and contracted client orders doubled to £149 million.
- Strategic US Expansion: Acquisition interest is bolstered by Oxford Biomedica’s new planned commercial scale manufacturing facility.
- Regulatory Clock: Under UK Takeover Code rules, EQT must announce a firm intention or withdraw by 5:00 PM on February 11, 2026.
What Happens Next
The immediate focus now shifts to the UK Takeover Code timetable. EQT has until 5:00 PM on February 11, 2026 to either announce a firm intention to make an offer or formally withdraw. During this period, discussions are expected to intensify as EQT conducts further due diligence and seeks to justify a valuation that would be acceptable to Oxford Biomedica’s board.
Should EQT proceed, any formal offer would likely be scrutinised closely by shareholders, particularly given the company’s recent financial momentum and long-term growth prospects. Analysts suggest that a meaningful premium would be required to reflect Oxford Biomedica’s strategic importance, its contracted revenue base, and the scarcity value of its viral vector manufacturing infrastructure.
If a deal is agreed, the transaction would still be subject to regulatory approvals and customary conditions, with completion potentially extending into the second half of 2026. A successful takeover could see Oxford Biomedica delisted from public markets and repositioned as a privately owned platform for further expansion in cell and gene therapy manufacturing.
Conversely, if EQT walks away, the episode may still serve as a valuation marker for the sector. Continued operational execution, US capacity ramp-up, and sustained demand for viral vectors could keep Oxford Biomedica in the spotlight, either as a standalone growth story or as a future acquisition target for strategic buyers or alternative financial sponsors.
In either scenario, the coming weeks are likely to be pivotal, not just for Oxford Biomedica’s shareholders, but for how investors assess the long-term value of life sciences manufacturing assets more broadly.
