hVIVO (HVO) , a contract research organisation specialising in human challenge trials, announced a £6.3m contract with a biotech client to test its antiviral candidate using hVIVO's human rhinovirus (HRV - common cold virus) human challenge study model.
The Phase 2a trial is planned to take place at hVIVO's new specialist quarantine facilities in Canary Wharf. The randomised, double-blinded placebo-controlled study will evaluate the effect of the antiviral candidate on viral load, safety, tolerability, and prophylactic antiviral activity against HRV infection in healthy volunteers recruited via hVIVO's dedicated recruitment arm FluCamp.
The study is expected to commence in H2 2024, with revenue recognised in FY24 and FY25.
"We are delighted to be partnering with this biotech client to investigate the use of their antiviral candidate against HRV. Our human challenge trials can provide quick efficacy data, that has the potential to significantly enhance the value of our clients' assets, something which is critical in the current tight biotech investment landscape. There is renewed focus and capital available to biopharma companies with assets targeting respiratory disease indications. Our HRV Human Challenge Model offers our clients the opportunity to open up these markets, given HRV's association to exacerbation of asthma and COPD." commented Yamin Khan, CEO of hVIVO.
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hVIVO shares gained on the announcement of a large £6.3m contract with a biotechnology company to test its antiviral candidate using hVIVO's HRV challenge study model. Revenues from the contract are expected to be recognised in FY24 and FY25. Today's announcement, together with hVIVO's recently signed £16.8m RSV contract, strengthens market expectations for FY24. Broker Cavendish anticipates revenues of £55m in FY23 and £60m in FY24. hVIVO's own guidance for FY24 is expected in early 2024.
Human rhinoviruses (HRV) are a group of pathogens that cause the "common cold", with over 150 distinct types of HRV currently known. Although a third of HRV infections are asymptomatic, it can be potentially serious in the elderly, immunocompromised, and those with existing respiratory diseases. Furthermore, there is strong evidence of a relationship between HRV infection and more severe symptoms of asthma and COPD. To date, no antiviral has been approved in the prevention or treatment of HRV infection.
Demand remains high for hVIVO's growing portfolio of human challenge studies, which offer significant benefits to biopharma companies - namely fast and cost-effective data that enables fast-tracking larger Phase 2 trials. The challenge study announced today will take place at hVIVO's new state-of-the-art quarantine facility in Canary Wharf, which is on track to be operational in H1 2024.
hVIVO is now juggling several large contracts with an orderbook 11% larger in 2023 and significantly diversified across multiple clients, challenge agents, and geographies. The move to the new expanded facility in H1 2024 will see a further increase in revenue potential with more quarantine beds and the ability to conduct multiple studies simultaneously and faster.
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