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hVIVO posts record 2024 revenues and margins, acquires CRS for €10m

10:46, 29th January 2025
Victor Parker
Vox Newswire
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hVIVO (HVOFollow | HVO, a contract research organisation specialising in human challenge trials, announced its preliminary results for the year ended December 31, 2024 (FY24).

hVIVO's total revenue increased by 11.9% during the period to a record £62.7m, up from £56m in FY23. EBITDA margin also rose to 26% from 23.3%, and cash jumped to £44.2m on December 31, 2024 from £37.0m the previous year.

In 1H24, hVIVO opened its new CL3 quarantine facility in Canary Wharf to meet rising client demand. The facility is now the world's largest commercial human challenge trial unit. HVO reported a record number of volunteers inoculated during the period across 7 challenge agents, alongside continued expansion if its human challenge model portfolio.

The new site facilitated the diversification of HVO's revenue streams to include standalone lab (hLAB), field study, and participant recruitment services. Standalone lab services were particularly successful, with 5 contracts signed and 99% growth in hLAB proposals within the period.

Yamin 'Mo' Khan, CEO of hVIVO, commenting: "2024 was a tremendous year for the Group, with the delivery of record revenue and EBITDA margins as well as laying broader foundations for future growth. These record financials were achieved in a year when the Company completed the move to the world's largest commercial human challenge trial unit, developed a number of new challenge models, launched three new service lines, and implemented a number of new software systems. This is all a testament to the hard work and expertise of our world-leading team."

hVIVO's full FY24 results are expected in mid-April 2025.

Separately, HVO announced the acquisition of 2 clinical research units from CRS for €10.0m. CRS is a German based full-service early-stage clinical development CRO. The purchase represents the first step in hVIVO's M&A strategy, and further diversifies its services to include in-patient Phase 1 and Phase 2 trials across a broader range of therapeutic areas. The deal establishes HVO's footprint in the EU with 120 beds across the 2 sites.

 

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hVIVO reports excellent FY24 preliminary results and the acquisition of Germany-based CRS as a first step in its M&A strategy. HVO achieved record revenues of £62.7m during the period, up 11.9% YOY, with a significant EBITDA margin uplift of 2.7% to 26%. Performance was driven by strong operational delivery, including the recruitment of a record number of human challenge trial (HTC) participants, delivery of HVO's largest Phase 2 field study to date, and recognition of £4.3m client funding towards the new state-of-the-art facility in Canary Wharf, the largest of its kind.

The launch of standalone lab services out of Canary Wharf was another notable success, with 5 standalone lab contracts signed and 99% growth in hLAB proposals within the period. In addition, HVO significantly expanded its human challenge model portfolio in 2024, including the world's first influenza B HCT, and a successful pilot characterisation study for its new hMPV human challenge model. HVO also won a Covid-19 Omicron characterisation study, and is developing new challenge models for influenza H1N1 and H3N2, and RSV A and RSV B.

Additionally, hVIVO announced the first step in its M&A strategy with the acquisition of Germany-based CRS, an early-stage clinical development CRO. The move expands HVO's services portfolio and establishes a significant footprint in the EU, with 120 beds across CRS's 2 sites in Germany. The total consideration of €10.0m is being funded from hVIVO's existing cash resources. HVO's cash position on December 31, 2024 was £44.2m, up by £7.2m YOY, highlighting continued strong cash generation.

CRS has an extensive European client base across pharma, biotech, and CRO businesses, including 4 of the world's largest 10 biopharma companies. CRS' 2 sites recorded revenues of €19.9m in FY24 and €18.6m in FY23. The enlarged group's weighted contracted orderbook was £67m on December 31, 2024. The acquisition will bring significant cross-selling opportunities for HVO, and is expected to be earnings accretive in FY26.

HVO issued FY25 revenue guidance of £73m, representing another significant uplift, with management projecting full-year EBITDA margins in the mid-high teens. Likewise for FY26, HVO is projecting "strong growth in revenue and a significant improvement on EBITDA margin". As of September 10, 2024, the group had a pipeline of c. £40m, of which c. £15m has already been converted into contracts, with c. £25m representing active opportunities. HVO is aiming for £100m of revenues by FY28, which is highly achievable given its strong sales momentum and £44.2m cash position.

 

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