Oxford Biomedica, Homology Medicines to Launch AAV Manufacturing Business

Oxford Biomedica has struck a deal with Bedford, Mass.-based Homology Medicines to launch an adeno-associated virus (AAV) manufacturing company in the U.S.

Under the deal, Oxford Biomedica will pay Homology $130 million upfront and will invest $50 million in the new company, Oxford Biomedica Solutions, in return for an ownership stake of 80 percent. Homology will own the remaining 20 percent, but Oxford has the option to buy out Homology after three years.

Oxford Biomedica Solutions will gain access to 125 Homology employees with extensive AAV manufacturing experience, more than 40 analytical assays and a good manufacturing practice-certified facility near Boston.

The deal is slated to close in the current quarter.