IPO Report: Oxford Immunotec Global (OXFD)

Francis Gaskins  |

Oxford Immunotec Global (OXFD) is a global, commercial-stage diagnostics company committed to improving patient care by providing advanced, innovative tests in the field of immunology for example, Tuberculosis.

Nine other operating companies scheduled IPOs for this week.. The full IPO calendar can be found at IPOpremium.

Manager, Joint managers: J.P. Morgan and Piper Jaffray.  Co-Managers: Cowen & Company, Baird.  S-1 filed November 8, 2013

OSFD scheduled a $75 million IPO on the Nasdaq with a market capitalization of $230 million at a price range midpoint of $14 for Friday, November 22, 2013.


OXFD’sproprietary T-SPOT® technology platform allows OXFD to measure the responses of specific immune cells, known as T cells, to inform the diagnosis, prognosis and monitoring of patients with immunologically controlled diseases.

For the September 2013 nine months compare to the year earlier period, sales were up 107% to $29 million, gross margin was up to 50% from 41%, loss percent of revenue dropped to -19% from -69.


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It is very difficult for a new diagognistic company to get traction in the medical market.  However, at 2.9 times book with nine month revenue up 107%, gross margin up and losses decreasing, OXFD is rated positive, and probably need to be priced down from its mid-range.


OXFD is a global, commercial-stage diagnostics company committed to improving patient care by providing advanced, innovative tests in the field of immunology. OXFD’sproprietary T-SPOT® technology platform allows OXFD to measure the responses of specific immune cells, known as T cells, to inform the diagnosis, prognosis and monitoring of patients with immunologically controlled diseases.

T cells are a central component of the human body’s immune system, and are implicated in the control and progression of many medical conditions, including certain types of infectious diseases, cancers and autoimmune diseases.

The initial product OXFD has developed using its T-SPOT technology platform is its T-SPOT.TB test, which is used to test for latent Tuberculosis (TB) infection, or LTBI. OXFD’s T-SPOT.TB test has been approved for sale in over 50 countries, including the United States, where OXFD has received pre-market approval (PMA) from the Food and Drug Administration (FDA), in Europe, where OXFD has obtained a CE mark, as well as Japan and China.


Tuberculosis remains a significant global public health problem. According to the World Health Organization, or the WHO, approximately two billion people globally have LTBI, and on average each carries a 10% lifetime risk of progressing to active TB disease. In 2011, approximately 9 million people contracted active TB disease, of which approximately 1.5 million people died.

Clinical guidelines

OXFD’s T-SPOT.TB test has been included in clinical guidelines (that is, guidelines issued by governmental agencies and professional societies covering recommended or suggested uses of available diagnostics) for TB screening in 17 countries, including the United States, several European countries and Japan.


In addition, OXFD has established reimbursement for its test in the United States, as well as a Current Procedural Terminology, or CPT, code that is used only for OXFD’s test. OXFD believes that many payors rely upon CPT codes to determine the amount they pay providers. Outside the United States, OXFD has established reimbursement in several countries where reimbursement applies, including Japan, Switzerland and Germany.

OXFD customers benefit from the existence of reimbursement mechanisms as it provides more certainty of the amount they will be paid for performing OXFD’s test. OXFD believes the annual global market opportunity for our T-SPOT.TB test is well in excess of $1 billion.

Intellectual property

The intellectual property relating to OXFD’s T-SPOT.TB test that OXFD owns or licenses includes 12 issued U.S. patents, more than 20 issued patents in other jurisdictions, 3 pending U.S. patent applications and 4 pending patent applications in other jurisdictions, as well as registered trademarks, proprietary manufacturing processes and protocols, and proprietary methods directed towards achieving rapid throughput in assay performance.


The clinical diagnostics market is highly competitive, and we must be able to compete effectively against existing and future competitors in order to be successful. In selling our T-SPOT.TB test, we compete primarily with existing diagnostic technologies, particularly the TST, which is widely used as a test for diagnosing tuberculosis. In addition,

OXFD competes with the QuantiFERON®-TB Gold In-Tube test1, or QFN, which, like OXFD’s T-SPOT.TB test, employs an interferon-gamma release assay, or IGRA, method for diagnosing tuberculosis.

OXFD also faces competition in the development, manufacture, marketing and commercialization of diagnostic products from a variety of other sources, such as academic institutions, government agencies, research institutions and other life sciences companies. These competitors are working to develop and market other diagnostic tests, systems, products and other methods of detecting, preventing or reducing tuberculosis.

In ther service offering, OXFD also may face competition from commercial laboratories, including large national and regional laboratories, which may be able to offer access to TB testing.

These laboratories may have perceived advantages over OXFD’s solution, including phlebotomy services, established payor relationships and dedicated courier services.

For example, as OXFD seeks to further penetrate the physicians’ office segment of the U.S. market, the company may find that physicians have established relationships with commercial laboratories that offer physicians additional services, such as phlebotomy, and a wider range of available laboratory tests that a physician may choose to order in addition to a TB test.

Further, some commercial laboratories may be able to offer their services at lower cost to physicians’ patients due to the reimbursement arrangements these laboratories may have established with third-party payors. These factors may make it difficult for OXFD to convince physicians to use the test and service offering.

5% stockholders

Clarus Lifesciences I, L.P.(1) 24.3%

New Leaf Ventures II L.P. (2) 8.6%

Esprit Nominees Limited(3) 10.1%

Imperial Innovations Businesses LLP(4)  7.9%

Invesco Asset Management Limited(5) 7.9%

WellingtonPartners Management Limited(6) 7.7%

Quester Venture Partnership and related funds(7) 5.8%  

Use of proceeds

OXFD expects to net $63.8 million from its IPO. Proceeds are allocated as follows:

$25 million to hire additional sales, marketing and customer service personnel and expand marketing programs both in the United States and outside the United States;

$11 million to fund research and development programs dedicated to development of new diagnostic tests in the field of immunology;

$6 million to repay indebtedness outstanding under OXFD’s senior secured term debt facility and related accrued interest; and

$21.8 million for working capital and other general corporate purposes.


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