hVIVO shares rose on Tuesday after the company announced a new contract win and reaffirmed revenue guidance, with EBITDA margin set to reach the upper end of the guidance.
hVIVO, the specialist contract research organisation, has secured a £11.5 million contract to test a new RSV antiviral drug candidate for an existing top-tier global pharmaceutical client.
The Phase 2a trial, scheduled to begin in the second half of 2025, will be conducted at the company’s Canary Wharf quarantine facilities, with revenue expected to be recognised across 2025 and 2026.
The study will be a randomised, double-blinded placebo-controlled human challenge trial, evaluating the safety, pharmacokinetics, and antiviral activity of the drug candidate. The company will use its in-house recruitment division, FluCamp, to enroll healthy volunteers for the study.
“This contract further demonstrates the trust and confidence that leading pharmaceutical companies place in hVIVO’s human challenge study models,” said Yamin ‘Mo’ Khan, Chief Executive Officer of hVIVO.
“We are proud to work with four of the top 10 global pharmaceutical companies to address unmet medical need in infectious and respiratory diseases. Our unique and established RSV model can provide valuable data on a candidate’s safety, pharmacokinetics, and efficacy, reducing the risks associated with later-stage clinical development and accelerating the pathway to market.”
hVIVO announced the new contract alongside a concise trading update confirming its financial guidance for the fiscal year 2024 and revenue of £62 million. The company expects its EBITDA margins to reach the upper end of market expectations, which currently range between 22% and 24%.
A comprehensive trading update for the year ended December 31, 2024, including the outlook for 2025, is expected to be released before the end of February 2025.