GCIhVIVO launches expanded hLAB services after tripling lab capacity for virology and immunology
() , a contract research organisation specialising in human challenge trials, announced the launch of its hLAB service offering, a highly specialised virology and immunology lab service for preclinical and clinical drug development.
hLAB has been operating at capacity in recent years due to the steady growth of hVIVO's human challenge trial services. Following the company's recent move to a new facility at Canary Wharf, its lab capacity has tripled and it can now offer standalone virology and immunology services.
hVIVO says the expanded lab space at Canary Wharf has been designed to "streamline workflows and provide operational efficiencies". To that end, it includes a cutting-edge CL-3 laboratory, allowing to work with hazard group 3 pathogens. Having received HSE clearance, the CL-3 lab has now commenced operations.
Additionally, hLAB has completed a large expansion of its assay portfolio, broadening the application of its serology, PCR, infectivity assay, human peripheral blood mononuclear cells (PBMC) processing and biomarkers services for new pathogens, including Omicron, human metapneumovirus (hMPV), B. Pertussis, dengue, and additional influenza, respiratory syncytial virus (RSV) and human rhinovirus (HRV) strains.
hLAB has also launched biobank services, and has been approved by the UK Research Ethics Committee as a Research Tissue Bank.
The team from hLAB will attend the upcoming World Vaccine Congress, Europe's largest meeting dedicated to vaccines, taking place at Hotel Catalonia Barcelona Plaza, Spain from 28-31 October 2024.
View from Vox
hVIVO has announced the launch of standalone virology and immunology lab services out of its newly acquired state-of-the-art facility at Canary Wharf, London. hLAB has been key in growing 's human challenge trials pipeline, and with the tripled capacity it should materially boost the delivery schedule of new projects. hLAB has already signed 3 standalone lab contracts in FY24, including its first major field study contract. With the additional capacity, hLAB can now also expand its provision of field trial biologistics to more clients, offering bespoke services to pharma companies and CROs in large multinational field studies.
hVIVO recently reported a stellar first half with record revenues and margins, driven by exceptional operational delivery across the group, with a record number of volunteer inoculations across multiple studies and a variety of challenge models running simultaneously. Margins jumped to 24.5% from 19.1% LY, driving higher cash generation, and in turn a much improved cash position at period-end of £37.1m, following payment of a new annual dividend in May 2024.
The new CL-3 quarantine unit in Canary Wharf should deliver even higher operational efficiency, boosting margins further in the medium term. The facility is now the world's largest commercial human challenge trial unit, and is expected to significantly diversify 's pipeline with new pathogen models.
hVIVO maintained a strong orderbook of £71m at the end of H1, with 100% of FY24 revenue guidance already contracted, giving full visibility for FY24 as well as excellent visibility for FY25. The orderbook value remained high despite the delivery of record turnover during the period, boosted by faster conversion vs previous periods. Overall, this indicates strong sales momentum, evidenced by recently won major contracts.
hVIVO maintains a full-year revenue guidance of £62m, with management projecting full-year EBITDA margins to be at the upper end of market expectations on the basis of the strong performance in H1 and full visibility for the remainder of the year. The group has a significant pipeline that is continuing to grow, including new challenge models and new revenue streams (eg clinical site studies, standalone lab services, and volunteer/patient recruitment), having short-to-medium term value of c. £40m. hVIVO aims for £100m of revenues by FY28, which is highly achievable given its strong sales momentum and US$37m cash position.
Follow News & Updates from hVIVO:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.