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#HVO hVIVO – Trading update
EBITDA significantly ahead of expectations
Orderbook growth and improved operational delivery lays strong foundations for future growth
· Record revenue, up 30% year-on-year to £50.6 million
· EBITDA margins of no less than 17%, significantly ahead of guidance
· Cash of £28.4 million as at 31 December 2022
· Strong contracted orderbook of £76m, up 65% year-on-year
· Board intention to declare shareholder distribution on publication of full audited accounts
· Over 95% of 2023 revenue guidance contracted and visibility into 2024
hVIVO plc (AIM & Euronext: HVO) (formerly Open Orphan plc), a rapidly growing specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, announces a trading update for the period ended 31 December 2022.
Significant double-digit revenue growth
The Group expects to report record full year revenues of £50.6 million (2021: £39 million), a 30% increase year-on-year. The significant growth in revenue provides further validation of the long-term sustainable growth in the human challenge trial market, for which hVIVO is the world leader.
EBITDA margins and cash ahead of expectations
The Group expects to report EBITDA margins of not less than 17% (2021: 7.4%), significantly ahead of previous guidance of 13-15%. The increase in EBITDA is driven by strong trading in H2 2022 and operational efficiencies leveraged on the concurrent conduct of multiple challenge trials. In addition, recognition of postponement and cancellation fees for an aggregate of over £1 million had a one-time positive impact on EBITDA. The advanced fees from orderbook growth and efficient operational delivery has resulted in a cash position of £28.4 million as at 31 December 2022 (2021: £15.7 million).
Capital distribution
The Board intends to make a shareholder distribution in respect of the financial performance achieved in FY22, details of which will be announced alongside publication of the Group’s audited results for FY22. The distribution reflects the Group’s exceptional cash generation in the year, in addition to its robust balance sheet.
Further contracted orderbook growth enhances revenue visibility
In 2022, the trend of larger contracts with biopharma clients continued, increasing the size of the Group’s orderbook to £76 million as at 31 December 2022, up 65% year-on-year (2021: £46 million), and over sixfold since 2020 (2020: £12 million).
There has been increased demand for hVIVO’s unique full-service human challenge offering (with three contracts signed in 2022) which also involves the manufacture of bespoke challenge agents to test products against specific infectious disease variants, including subvariants that are circulating in the population. There has also been an increase in average challenge trial contract value driven by client demand for larger volunteer cohorts as the biopharma market increasingly recognises the value of human challenge data to accelerate drug development timelines and de-risk later stage clinical trial programmes.
Current year outlook
The Group has entered 2023 well capitalised, debt free, and with record visibility into the current financial year. hVIVO is firmly placed to build on the growth in the human challenge trial market and further strengthen its position as the world leader in the field. The growing orderbook from new and existing Big Pharma and biotech clients provides excellent forward visibility with over 95% of forecasted revenue for 2023 contracted, and further revenue visibility into 2024. The Board is confident that the Group will continue to leverage its competitive position amidst favourable market dynamics and maintain its strong operational execution, orderbook revenue conversion and focus on profit generation into 2023 and beyond.
Yamin ‘Mo’ Khan, Chief Executive Officer of hVIVO, said: “The record numbers we have been able to announce today is the result of the hard work by everyone at hVIVO over the last 12 months. The goal for hVIVO has always been to establish a long-term sustainable growth model. We now have excellent profitable momentum, with full year 2022 EBITDA margin and cash significantly ahead of market expectations, while revenue shows substantial year-on-year growth. These results signify our successes of 2022 and also lay the foundations for FY23 and beyond. The record contracted orderbook not only covers over 95% of the FY23 revenue targets but also gives us visibility well into 2024.
“With the increasing prevalence and severity of infectious and respiratory diseases, there is a vital need for new vaccines and antivirals; as the human challenge partner of choice to the global biopharma industry, hVIVO is well placed to continue to help accelerate the development of these important new medicines.”
Investor presentation
Yamin ‘Mo’ Khan, Chief Executive Officer, and Stephen Pinkerton, Chief Financial Officer, will provide a live presentation via the Investor Meet Company platform on 25 January 2023 at 18:00 BST.
The presentation is open to all existing and potential shareholders. Investors can sign up to Investor Meet Company for free and add to meet hVIVO here.
#HVO Hvivo – Imutex Phase I data published
hVIVO plc (AIM & Euronext: HVO) (formerly Open Orphan plc), a rapidly growing specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, announces publication of previously reported positive data from a first-in-human Phase I clinical study evaluating the safety and immunogenicity of AGS-v PLUS. The data has been published in eBioMedicine,1 a peer-reviewed open access biomedical journal part of The Lancet Discovery Science.
AGS-v PLUS is a vaccine candidate against arboviral diseases that targets the saliva of the mosquito rather than the pathogens carried by the mosquito. AGS-v PLUS is owned by Imutex Ltd, a joint venture with PepTcell Limited (the parent company of ConserV Bioscience Ltd), in which hVIVO has a 49% shareholding.
AGS-v PLUS vaccine candidate has a novel proposed dual action mechanism of preventing infection in humans whilst controlling the mosquito population through affecting reproduction. AGS-v PLUS contains five synthetic peptides that originate from proteins found in the saliva of mosquitoes. The published manuscript shows data from the study conducted at the University of Maryland School of Medicine and sponsored by NIAID-NIH, demonstrating that all AGS-v PLUS formulations evaluated (non-adjuvanted or adjuvanted in alhydrogel or Montanide ISA-51) were well tolerated with no serious adverse events experienced, and that they generated a robust cellular and humoral immune response in participants, the formulation in Montanide ISA-51 being the most immunogenic. Moreover, the immune response mounted against AGS-v PLUS was shown to reduce infectivity of Zika virus in vitro.
Mosquito-borne diseases include Zika, West Nile, chikungunya, dengue, yellow fever, and malaria amongst others. There are ~360 million cases of and more than 600,000 deaths from mosquito-borne diseases annually, although the true burden is likely underestimated. A vaccine efficacious against multiple mosquito-borne diseases could significantly impact public health.
Yamin ‘Mo’ Khan, Chief Executive Officer of hVIVO, said: “It is encouraging to see the results from Imutex’s first-in-human Phase 1 trial for AGS-v PLUS published in eBioMedicine. The data demonstrated that AGS-v PLUS was well tolerated and generated a robust immune response in participants, with no serious adverse events. The next steps will be to determine if these findings translate into clinical efficacy against mosquito-borne diseases, which inflict a severe burden on public health systems around the world.”
- “Safety and immunogenicity of AGS-V plus, a mosquito saliva peptide vaccine against arboviral diseases: A randomized, double-blind, placebo-controlled phase 1 trial,” by Friedman-Klabanoff, D.A.J. et al. (2022) is available in eBioMedicine, part of The Lancet, 86, p. 104375. DOI: https://doi.org/10.1016/j.ebiom.2022.104375
- Institute for Health Metrics and Evaluation (IHME). Global Burden of Disease 2019 Cause and Risk Summary: Malaria, Dengue, Yellow Fever, Zika; 2020. Accessed April 6, 2021.
For further information please contact:
hVIVO plc | +44 (0) 20 7756 1300 | ||
Yamin ‘Mo’ Khan, Chief Executive Officer
Stephen Pinkerton, Chief Financial Officer |
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Liberum Capital (Nominated Adviser and Joint Broker) | +44 (0) 20 3100 2000 | ||
Ben Cryer, Edward Mansfield, Phil Walker, Will King | |||
finnCap plc (Joint Broker) | +44 (0) 20 7220 0500 | ||
Geoff Nash, Charlie Beeson, Nigel Birks, Harriet Ward (ECM) | |||
Davy (Euronext Growth Adviser and Joint Broker) | +353 (0) 1 679 6363 | ||
Anthony Farrell, Niall Gilchrist | |||
Walbrook PR (Financial PR & IR)
Stephanie Cuthbert / Phillip Marriage / |
+44 (0) 20 7933 8780 or hvivo@walbrookpr.com
+44 (0) 7796 794 663 / +44 (0) 7867 984 082 / |
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Notes to Editors
hVIVO plc (ticker: HVO) (formerly Open Orphan plc) is a rapidly growing specialist contract research organisation (CRO) and the world leader in testing infectious and respiratory disease vaccines and therapeutics using human challenge clinical trials. The Group provides end-to-end early clinical development services to its large, established and growing repeat client base, which includes four of the top 10 largest global biopharma companies.
The Group’s fast-growing services business includes a unique portfolio of 10+ human challenge models to test a broad range of infectious and respiratory disease products, world class challenge agent manufacturing, specialist drug development and clinical consultancy services via its Venn Life Sciences brand, and a lab offering via its hLAB brand, which includes virology, immunology biomarker and molecular testing. The Group offers additional clinical field trial services such as patient recruitment and clinical trial site services.
hVIVO runs challenge studies in London from its Whitechapel quarantine clinic, its state-of-the-art QMB clinic with its highly specialised on-site virology and immunology laboratory, and its clinic in Plumbers Row. To recruit volunteers / patients for its studies, the Company leverages its unique clinical trial recruitment capacity via its FluCamp volunteer screening facilities in London and Manchester.
About PepTcell Limited
PepTcell brings safe, effective, and low-cost treatments to patients, in the shortest time possible, to radically improve human health in major disease areas. Through its subsidiary ConserV Bioscience Limited, PepTcell develops vaccines to a broad range of infectious diseases. ConserV Bioscience is a late-stage vaccine development company focused on advancing safe and effective vaccines that protect against endemic and emergent infectious diseases. They use a novel in silico proprietary platform to identify highly conserved regions in the proteome that contain a high number of reactive T-cell epitopes with extensive HLA coverage. These regions are then used as antigens and are delivered using the most appropriate method for the combination of antigens and the disease, for example, as synthetic peptides or encoded in mRNA. This approach has consistently identified promising vaccine candidates which have demonstrated immunogenic responses in pre-clinical validation studies and have achieved mid- and late-stage clinical milestones.
Markets and Stocks – Doc Holliday talks to Alan Green
As we head towards Christmas, Alan Green and Doc Holliday talk markets and stocks. We discuss the macro events in the UK and the opportunities that Brexit and inflation could be throwing up for UK agriculture before we turn to stocks. Doc covers Harland & Wolff #HARL, ECR Minerals #ECR, Contango Holdings #CGO, Emmerson #EML, Longboat Energy #LBE, Poolbeg Pharma #POLB, hVIVO #HVO, Reabold Resources #RBD and More Acquisitions #TMOR.
#HVO hVIVO plc – Investors’ Chronicle
Building on decades of experience, hVIVO is currently the only CRO focused on challenge studies, providing world class expertise and capabilities in challenge agent manufacture, a unique portfolio of established human challenge models to test a broad range of infectious and respiratory disease products, and specialist drug development and clinical consultancy services through its Venn Life Sciences subsidiary.
hVIVO contract awards Since the release of interim results in early September, hVIVO has announced a massive £13.4mn contract with a US biotechnology client, a repeat customer, to test its respiratory syncytial virus antiviral candidate using hVIVO’s established RSV Human Challenge Study Model.
Although difficult to assess the challenge study market, Liberum Capital estimates there are around 20 challenge studies conducted each year.
Using the prevailing average contract size of £6.7mn, this indicates £100mn-£135mn of challenge study work each year, excluding any additional income through manufacturing and validating bespoke challenge agent.
Around 60 per cent of hVIVO’s current order book relates to biotech customers and the balance relates to big pharma, with the group carrying out three active challenge studies for big pharma in the first half of 2022 and two full-service challenge studies with values exceeding £25mn. Moreover, hVIVO has signed up eight challenge studies with big pharma companies since 2018, 12 and all the big pharma clients are repeat customers.
Improving financials Backed by a bumper order book and having booked £9mn of group revenue in July and August 2022, house broker FinnCap expects the group’s hVIVO division, which carries out the challenge studies, to grow revenue from £29.4mn last year to £42.5mn in 2022 and account for 82 per cent of its total revenue estimate of £51.1mn. Furthermore, taking account of challenge study contract wins, revenue from Venn Life, laboratory services and non-challenge studies, the brokerage estimates that £53mn of its 2023 revenue estimate of £56mn is already covered.
SGS’s expertise is in performing influenza challenge studies, but it also has Malaria challenge, and RSV challenge models.
#HVO hVIVO plc- Share Price
hVIVO plc (AIM: HVO) (formerly Open Orphan plc), a rapidly growing specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, saw the share price rise which was then picked up in the Daily Mail Stock Watch this morning
For further information please contact:
hVIVO plc |
+44 (0) 20 7756 1300 |
||
Yamin ‘Mo’ Khan, Chief Executive Officer Stephen Pinkerton, Chief Financial Officer |
|||
Liberum Capital (Nominated Adviser and Joint Broker) |
+44 (0) 20 3100 2000 |
||
Ben Cryer, Edward Mansfield, Phil Walker, Will King |
|||
finnCap plc (Joint Broker) |
+44 (0) 20 7220 0500 |
||
Geoff Nash, Charlie Beeson, Nigel Birks, Harriet Ward (ECM) |
|||
Davy (Euronext Growth Adviser and Joint Broker) |
+353 (0) 1 679 6363 |
||
Anthony Farrell, Niall Gilchrist |
|||
Walbrook PR (Financial PR & IR) Stephanie Cuthbert / Phillip Marriage / |
+44 (0) 20 7933 8780 or hvivo@walbrookpr.com +44 (0) 7796 794 663 / +44 (0) 7867 984 082 / |
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