Listed clinical trials group Hvivo said the first half of 2024 was “exceptionally strong” with record revenues and margins.
In its interim results for the six-month period ended June 30th, the company, formerly known as Open Orphan, said revenue grew by more than 30 per cent to £35.6 million.
Earnings before interest, tax, depreciation and amortisation (Ebitda) were £8.7 million, almost 67 per cent higher than in 2024, while Ebitda margins were 24.5 per cent. Basic adjusted earnings per share were 30.6 per cent higher at 0.81 pence.
The rare and orphan drug consulting services platform, which specialises in testing infectious and respiratory disease products, was formed when the group’s chairman Cathal Friel reversed his pharma services business of the same name into Dublin-listed drug clinical trials manager Venn Life Sciences.
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It had cash of £37.1 million as at June 30th, with a weighted contracted order book of £71 million, slightly below the £78 million in the first half of 2023.
The group said it was targeting full-year revenue guidance of £62 million.
Among the contracts it has signed are the £6.3 million Human Rhinovirus deal it signed with a biotech client, a £2.5 million Omicron characterisation study contract with a pharmaceutical company, and Venn’s expansion of its multi-year consultancy agreement with a global pharmaceutical client.
The company’s state of the art facility in Canary Wharf is now fully operational, Hvivo said, providing a foundation for new revenue streams with the completion of the fit-out of the CL-3 laboratory there. The company said there was interest in new challenge models, with potential revenue streams of around £40 million.
“After an exceptionally strong first half with record revenues and margins, hVIVO enters the remainder of the year with FY24 revenue guidance fully contracted and good visibility into 2025. We continue to expand our pipeline, not only in human challenge trials but also in our new revenue streams including clinical site studies, stand-alone laboratory services, and volunteer/patient recruitment,” said Yamin “Mo” Khan, chief executive of Hvivo.
The group is targeting revenue of £100 million by 2028, with growth underpinned by the increased capacity of its facilities and a strong cash position.
Hvivo cancelled its admission to trading on Euronext Growth earlier this month to concentrate on its London listing, where most of its operations are located. The cancellation will remove certain costs, complexities and duplication that comes from administering two listing regime.
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