hVIVO (HVO) , a contract research organisation specialising in human challenge trials, issued a trading update for the 6 months to June 30, 2025 (H1 2025).
hVIVO reported revenues of £24.2m, in line with expectations of £47m for the full year, with EBITDA margin at c. 12%. 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.
The group remained debt-free with £23.3m in cash at period-end, down from £37.1m a year ago, reflecting the acquisitions of Germany-based CRS and London-based Cryostore. The two additions cost £10.5m cash and contributed £5.5m to group revenues in H1 2025.
The in-line revenue guidance of £47m and forecast low single-digit EBITDA loss represented an improvement on previous guidance. HVO stock moved 5% higher on the news.
Yamin 'Mo' Khan, CEO of hVIVO, commenting: "The utility of our services remains strong, as demonstrated by the recent success of our client's Phase II candidate. Our diversification strategy is already delivering results, and we expect continued momentum across all revenue streams. While macroeconomic and sector-specific headwinds are still affecting contract conversions, we remain confident in the long-term growth trajectory of our services and the overall prospects for hVIVO. I'm encouraged by the strength of our sales pipeline, with several major opportunities that could enhance the growth of our services. We believe that we are well positioned to deliver growth in FY26, and we look forward to keeping shareholders updated on our progress."
View from Vox
hVIVO delivers a positive trading update and an upgrade to previous guidance from mid-single digit to low-single digit EBITDA loss for the year. The improvement reflects the impact of operational efficiencies, tight cost controls, and cancellation fees registered during the period. Markets reacted well to the news, sending HVO shares 5% higher as of time of writing.
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 revenues, 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. 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.
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 Phase 3 HTC 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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