hVIVO PLC on Wednesday said it expects to report record revenue for 2022, as it reported a strong order book.
The London-based early clinical development services provider, formerly known as Open Orphan, said it estimates revenue in 2022 of £50.6 million, surging 30% from £39 million in 2021.
‘The significant growth in revenue provides further validation of the long-term sustainable growth in the human challenge trial market,’ hVIVO asserted.
The company said it also expects to report earnings before interest, tax, depreciation and amortisation margins of at least 17%, up from 7.4% in 2021, and well ahead of its previous guidance of between 13% and 15%.
hVIVO said the Ebitda margin improvement was a result of strong trading in the second half of the year, as well as ‘operational efficiencies leveraged on the concurrent conduct of multiple challenge trial’. The company also saw a £1 million one-off positive impact on Ebitda due to postponement and cancellation fees.
The company said its cash position at December 31 was £28.4 million, up from £15.7 million a year ago, due to advanced fees from orderbook growth.
hVIVO said its contracted orderbook was £76 million at year-end, up 65% from £46 million a year before, due to a number of large contracts with biopharma clients. The company said 95% of 2023 forecast revenue has been contracted. hVIVO didn’t provide a 2023 revenue forecast, but its comment suggested revenue of £80 million.
There has been an increase in the average value of each challenge trial contract as the market ‘increasingly recognises the value of human challenge data to accelerate drug development timelines and de-risk later stage clinical trial programmes’, hVIVO said.
Chief Executive Officer Yamin Khan said: ‘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.’
hVIVO shares were up 12% trading at 16.65 pence per share on Wednesday afternoon in London.
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