hVIVO, a leader in pharmaceutical services and human challenge trials, has made a bold move to expand its European footprint with the acquisition of two clinical trial units in Germany. This strategic purchase from CRS Clinical Research Services Management GmbH for €10 million will enhance hVIVO’s operational capabilities, further solidifying its position in the market.
The newly acquired units, a 94-bed facility in Mannheim and a 26-bed unit in Kiel, are set to play a pivotal role in hVIVO’s growth strategy. These sites generated unaudited revenues of €19.9 million in 2024 but reported an adjusted EBITDA loss of €1.8 million. Under hVIVO’s ownership, an investment and restructuring programme estimated at €2.5 million will be implemented this year to optimise their performance and integrate them seamlessly into the company’s operations.
CRS, a well-established player in early-stage clinical development, brings valuable expertise and infrastructure to hVIVO. The acquisition has been fully funded through hVIVO’s existing cash reserves, which stood at £44.2 million at the close of 2024. This financial stability has allowed the company to capitalise on strategic growth opportunities without external funding pressures.
hVIVO, part of Cathal Friel’s portfolio of high-growth ventures, has been delivering impressive financial results. The company recently issued a trading update for 2024, reporting an 11.9% revenue increase to £62.7 million and a rise in full-year EBITDA margins to 26% from 23.3% the previous year. These gains were driven by strong operational efficiency, record recruitment of human challenge trial participants, and the opening of the world’s largest commercial human challenge trial unit, a 50-bedroom CL-3 facility.
This cutting-edge unit enabled the group to conduct a record number of human challenge studies across seven different challenge agents. The availability of three quarantine facilities played a crucial role in accelerating project timelines, ultimately boosting both revenue and profitability.
CEO Dr Yamin ‘Mo’ Khan hailed 2024 as a landmark year for hVIVO, citing record revenue and profitability, alongside the expansion of the company’s service offerings and strategic acquisitions. He expressed confidence that these developments position hVIVO to achieve its ambitious target of £100 million in revenue by 2028.
With a strong financial foundation, a rapidly expanding service portfolio, and a growing European presence, hVIVO continues to reinforce its leadership in human challenge trials and early-stage drug development.
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.
