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hVIVO reveals significant influenza trial contract

07:17, 2nd July 2024
John Hughman
Vox Newswire

hVIVO (HVO)Follow | HVO, a leading contract research organization known for its expertise in developing human challenge models for infectious and respiratory disease trials, has secured a major contract to conduct a Phase 2b field study for an influenza drug candidate. Engaged by a U.S.-based client, hVIVO will exclusively serve as the UK clinical site for this study, which aims to enrol up to 1,000 healthy volunteers.

This randomized, double-blind, placebo-controlled study marks a significant expansion in hVIVO's operations. The company’s dedicated recruitment arm, FluCamp, will facilitate the volunteer enrolment process. Volunteers will receive either the investigational influenza drug or a placebo and will then be monitored through regular clinical check-ups over several months to evaluate the drug's efficacy and safety. The study is slated to begin in Q4 2024, with most revenue from this contract expected to be recognized in FY 2025.

The contract represents the largest field study hVIVO has undertaken, introducing a new income stream that aligns with the company’s strategic goals. As part of its broader operational enhancement, hVIVO is converting its former corporate office at Plumbers Row into an expanded outpatient unit, where the trial will be conducted. This upgrade is designed to support future Phase II and Phase III field studies, thereby bolstering the company’s capacity to handle large-scale clinical trials.

Chief executive Mo Khan commented: “This project comes at a time when we are in the process of expanding our screening site in London to accommodate these types of studies. Our achievements in recruiting large numbers of volunteers and patients into clinical studies was a key reason for this award.”


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Volunteer recruitment is one of hVIVO key competitive advantages, and this deal highlights the company’s ability to strengthen its market position and diversify its revenue streams.

The Plumbers Row expansion is expected to further enhance staff utilization and capitalize on FluCamp's recruitment capabilities, ultimately improving growth and profit margins. hVIVO boasts a 300,000-strong volunteer database and advanced CRM systems, while the company’s adept use of social media platforms like TikTok and Instagram has enhanced its recruitment efficiency.

The company is hosting a capital markets day on 17th July alongside revealing a trading update for the six months to 30th June 2024. hVIVO entered FY24 with strong momentum and 90% of revenue guidance already contracted. Revenue visibility is very strong into FY25 and indicative of the growing popularity and attractiveness of human challenge trials. 

The opening of hVIVO's new facility in Canary Wharf in H1 2024 should result in further EBITDA and margin gains and allow the group to scale faster. hVIVO expects revenues of £62m in FY24 and aims for £100m by FY28. Anticipated FY24 EPS of 1.37p leaves the shares trading on a PE ratio just under 20x, undemanding for a high growth industry leader that continues to widen its competitive moat.

Stock Chart | HVO

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