Oxford Biomedica.

Cyan, in response to your posting earlier today (No. 48 above) I advise as follows:

1) Dilution from another potential fundraising:

If the company aimed to raise say £30 million in 2004, the amount of dilution would depend upon the market capitalisation of the Company at the time of the fund raising, and need not be significant. For example, raising £30 million if market capitalisation were only £60 million (as at present)would produce a 50% dilution; but raising £30 million when market capitalisation could be £300 million (which I regard as a modest figure equating to a share price of about 150p) would produce dilution of only 10%.

2) Need for a fundraising:

It is conceivable that a fundraising may not be needed, or only a small fund raising may be needed in future. This will mainly depend upon the success of the company to make licensing and other agreements with other companies during the next two years. To date, OXB has a successful track record of making such agreements, which I find reassuring. If the recently established Gene Discovery Division can also produce a steady stream of agreements, this could greatly enhance the financial position and overall safety profile of the company; however this division has yet to prove its financial worth in term of income generation.

3) Should you buy now?

As to your question whether you should buy OXB at present, it would not be right for me to advise you directly but you may wish to know the analyst consensus opinion (on the FT.com website) is “Strong buy”.

Q.

(Not an instruction to buy, sell or hold. DYOR).