Britain’s Oxford Biomedica Plc said on Friday it would form a viral vector manufacturing business with U.S.-based Homology Medicines, and would acquire an 80% stake in the new firm valued at about 175 million pounds ($234 million) including debt.

The London-listed cell and gene therapy firm said the venture would broaden its offerings with Homology’s expertise in adeno-associated virus manufacturing. Oxford Biomedica said it would fund the deal partly through an $85 million loan.

Oxford Biomedica, also a contract manufacturer for AstraZeneca (AZN.L) and Oxford University’s COVID-19 vaccine, added that it was in talks with the Anglo-Swedish drugmaker over an extension to their current supply agreement.

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