The Dublin and London-listed organization, hVivo, has reported a significant increase in revenue for the first six months of 2023. Revenues reached £27.3m (€31.8m), up from £18m (€21m) during the same period last year. This growth can be attributed to the successful delivery of more human challenge trials and an increase in total contract value. Furthermore, the company recorded additional income of £1.4m from research and development tax credits. hVivo also saw a substantial increase in net cash, with £31.3m compared to £15.9m in 2022.
Earnings before interest, taxes, depreciation and amortization (EBITDA) margins also experienced a remarkable rise of 19%, reaching £9.1m from £2.9m in 2021. This improvement can be attributed to operational enhancements and the simultaneous running of multiple larger trials. Additionally, hVivo completed seven challenge studies in 2022, inoculating a total of 413 volunteers throughout the year, representing a 32% increase compared to the previous year.
The company’s contracted order book also experienced growth, increasing by 11% to £78m by the end of June, primarily due to new contracts. While there have been some delays in clinical trial approvals by the UK’s Medicines and Healthcare Products Regulatory Authority, hVivo does not expect this to significantly impact revenue for the year. However, there have been some delays related to new trials. Nevertheless, hVivo projects revenues of approximately £55m for the year, including £2m of other income such as R&D tax credits.
The company’s CEO, Yamin Khan, expressed satisfaction with the results, stating, “I am pleased to announce another period of excellent growth for hVivo, delivering strong revenues, healthy EBITDA, and continued cash generation.” Additionally, hVivo recently secured a £13.1m (€15.2m) contract with a global pharmaceutical company to develop an influenza B virus challenge model. Khan further added, “Since the end of June, our weighted contracted order book has increased even further following the recent announcement of our new Influenza B human challenge model. This record visibility of revenue well into the second half of 2024 provides a strong basis for future trading, as well as additional flexibility and adaptability to efficiently manage our pipeline.”
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