Specialist research group hVIVO has seen a significant rise in revenue for the first half of 2024, recording a 30.6% increase compared to the same period last year. The company generated £35.6 million in the first six months of this year, a notable jump from £27.3 million in 2023. Alongside this, EBITDA rose impressively by 67.6%, moving from £5.2 million to £8.7 million over the same period.
Earnings per share were also up, with adjusted earnings increasing 30.6%, rising from 62 pence to 81 pence. Furthermore, the company strengthened its cash reserves, which now stand at £37.1 million, compared to £31.3 million in June of the previous year.
Despite this strong performance, there has been a slight dip in the value of hVIVO’s weighted contracted order book, which has reduced from £78 million to £71 million. The company, headquartered in London, was acquired by Dublin-based Open Orphan five years ago.
The first half of 2024 saw hVIVO’s facility in Canary Wharf become fully operational. This period was marked by a record number of volunteers inoculated across six challenge trials and five challenge agents. The group also secured several key contracts, including a £6.3 million human rhinovirus contract with a biotech client and a £2.5 million Omicron characterisation study contract with a mid-sized pharmaceutical company.
In addition to these developments, hVIVO landed its largest field study to date, introducing a new revenue stream. Its subsidiary, Venn, also extended its multi-year consultancy agreement with major global pharmaceutical clients, further bolstering the company’s business prospects.
Chief Executive Officer, Yamin ‘Mo’ Khan, commented on the company’s strong performance, stating that hVIVO has entered the second half of the year with full visibility of its FY24 revenue guidance. He noted that the company continues to expand its pipeline not only in human challenge trials but also in other revenue streams such as clinical site studies, standalone laboratory services, and volunteer/patient recruitment.
Khan also highlighted ongoing operational improvements, driven by service expansion, increased automation, and the move to the new Canary Wharf facility. He reaffirmed hVIVO’s full-year revenue target of £62 million and revealed that the company is on track to capitalise on short to medium-term opportunities with a potential yield of £40 million. Looking further ahead, the group is aiming to achieve £100 million in revenue by 2028 through a combination of organic growth and selective acquisitions that align with its strategic and financial goals.
Former Chairman Cathal Friel made headlines in July when he sold his remaining shares in hVIVO for £6.1 million (€7.3 million). This move followed strong investor interest after the company’s recent capital markets event, further demonstrating the market’s confidence in hVIVO’s growth trajectory.
hVIVO continues to show strong financial performance and has laid out ambitious growth plans that indicate a bright future for the company. With a solid cash position, a fully operational facility, and a growing portfolio of contracts, hVIVO is poised for sustained success.
hVIVO plc (formerly Open Orphan plc), led by Cathal Friel, is a rapidly growing specialist contract research organisation (CRO) and the world leader in testing infectious and respiratory disease vaccines and antivirals using human challenge clinical trials, providing end-to-end early clinical development services for its broad and long-standing client base of biopharma companies.
