The 18-month supply agreement is part of a three-year supply and development agreement between the two companies, and could be extended by another 18 months into 2022 and 2023.
AstraZeneca will pay Oxford Biomedica £15mln upfront as a capacity reservation fee, plus additional revenue in excess of £35mln alongside certain materials costs.
Oxford Biomedica will reserve capacity for AZD1222 in up to three manufacturing suites in its new commercial manufacturing centre, Oxbox.
The FTSE 250 company said it does not expect any impact to current partnerships in the cell and gene therapy field or ability to secure new ones.
“Having spoken to management, we understand that there are a several variables yet to be finalised in relation to the scaling up of the manufacturing process, but that the company does expect to make an operating margin, although this maybe below a typical commercial lenti-deal,” analysts at house broker Peel Hunt noted.
Shares advanced 3% to 866.2p on Tuesday at the opening bell.