hVIVO (HVO) , a contract research organisation specialising in human challenge trials, announced its interim results for the 6 months ended June 30, 2025 (H1 2025).
hVIVO reported H1 revenues of £24.2m, in line with full-year guidance of £47m, including £5.2m and £0.3m contributions from recently acquired Germany-based CRS and London-based Cryostore, respectively. EBITDA stood at £3.0m with a margin of 12.5%, and a net EBITDA loss from the acquisitions of £0.5m. Basic EPS was 0.29p.
The group remained debt-free with £23.3m in cash on June 30, 2025, down from £37.1m a year ago, reflecting the acquisition purchases. HVO had a weighted contracted orderbook of £40m at period-end, with a steady sales pipeline of large human challenge trials (HCTs) in advanced discussions, providing good revenue visibility.
Operationally, HVO noted a number of milestones. The group's standalone clinical service hLAB completed an 817-participant Phase II influenza trial and signed a £3.2m contract for another multi-site Phase II field trial. HVO signed a total £5.5m of contracts for CRS during the period, most of which will be recognised in 2025. The group also signed an LOI with ILiAD Biotechnologies for the world's first pivotal Phase III human challenge trial, expected to be the hVIVO's largest HTC to date.
Yamin Khan, CEO of hVIVO, commenting: "The broader CRO industry has been impacted by macroeconomic and sector-specific headwinds, and hVIVO is no exception. However, we are greatly encouraged by the early success of our diversification strategy and by the strength of our pipeline, with the aggregate value of customer proposals submitted in H1 2025 exceeding FY24. Looking ahead we are focused on finalising the integration of CRS and Cryostore into the Group, realising further synergies presented by these bolt-ons, converting our pipeline into revenue, and positioning the business to return to sustainable growth in 2026 and beyond."
View from Vox
hVIVO delivers a solid H1 2025, in line with market expectations, and remains on track to achieve £47m in full-year revenues with a low single-digit EBITDA loss. hVIVO anticipates a return to growth in 2026, targeting high-single digit revenue growth, supported by its newly diversified services and the gradual normalisation of HCT activity. The group's resilient H1 performance reflects the impacts of operational efficiencies, tight cost controls, and cancellation fees recognised during the period.
While some sector-specific headwinds persisted in H1, related to uncertainty in the US pharma industry that has impacted the whole CRO space, hVIVO managed to maintain steady income, a strong orderbook of £40m, and a strong sales pipeline with multiple large human challenge trial (HCT) projects in advanced negotiations. The aggregate value of customer proposals submitted to HVO in H1 2025 surpassed all of FY24, which bodes well for medium-term growth. The group remains debt-free with a solid cash balance of £23.3m at the end of H1, supporting future growth.
hVIVO's resilient performance was underpinned by a well-diversified revenue base, with significant contributions coming from its hLAB standalone services as well as new revenue streams from recently acquired Germany-based CRS and its early-phase clinical trial services and participant recruitment. HVO also recently acquired Cryostore, a provider of temperature-controlled storage solutions for biological and clinical materials in London, bolstering its hLAB offering. The two additions cost £10.5m cash and contributed £5.5m to group revenues in H1 2025.
Looking ahead, the two acquisitions have been almost fully integrated, expected to yield significant cross-selling synergies. CRS's conversion rate of proposals to contracts increased steadily YTD vs FY24, which is another indicator of medium-term growth. CRS remains on track to become profitable in FY26, supported by a strong pipeline and targeted investments through FY26.
While the sector is facing transient headwinds, its fundamentals remain strong and we expect biotech funding to normalise in the near-to-medium term. hVIVO's core HCT business has proved highly resilient, as the group recently executed its largest field trial to date. Major projects are in advanced talks, such as the world's first pivotal Phase III HCT trial, anticipated to finalise by late FY25. Supported by increasing revenue diversification while managing its largest sales pipeline to date, hVIVO is very well-positioned to return to growth in FY26.
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