In a trading update for the year to 31 December 2021, the contract research organisation, Open Orphan (ORPH ) said it expects 2021 to be EBITDA positive with revenues of around £40m while revenues and EBITDA are also expected to be in line with expectations
The Company, which reported cash and cash equivalents as of 31 December 2021 at £15.6m (up from £14.9m in 2021) said it expects to be in line with management expectations for year to 31 December 2022 as it targets revenues in the region of £50m in non-COVID-19 work.
While it expects both revenues and EBITDA to be in line with the expectation, accordingly, the Company said it expects 2021 to be EBITDA positive with revenues of approximately £40m.
Open Orphan intends to open a new primary FluCamp volunteer recruitment screening facility in Plumbers Row, London, as well as a secondary FluCamp recruitment facility in Manchester.
The new facilities are expected to double the group’s previous volunteer screening capacity, therefore ‘significantly boosting’ its ability to identify and enrol study volunteers and patients as well as further strengthening its world leading human challenge capabilities, it outlined.
As part of the opening of a new specialised volunteer recruitment facility in London, the Whitechapel quarantine clinic and the Queen Mary’s Bioenterprises Centre (“QMB”) clinic will both be exclusively dedicated to conducting human challenge studies going forward.
The Company’s QMB facility will expand to 31 beds, adding to the Whitechapel Clinic’s 19 beds and the Plumbers Row Facility’s 12; in total the Company’s bed count will reach 62.
These new facilities are expected to allow Open Orphan to expand the scope of the business to offer ‘Phase I and Phase II vaccine field trials, PK (pharmacokinetics) studies, bridging studies, and patient trials (as opposed to healthy volunteer human challenge trials) as part of large international multi-centre studies which do not require a quarantine setting,’ it detailed.
The increase in volunteer recruitment capacity will also enable it to recruit larger cohorts more quickly than before. Particularly in Manchester, the secondary facility extends the Company’s reach for more volunteers and facilitates the increasing demand for human challenge studies.
Commenting today, Cathal Friel, Executive Chairman of Open Orphan, noted: “Despite difficult market conditions during the year, which have continued into 2022, I am pleased with the performance of the Open Orphan team and during 2021 we signed an impressive number of human challenge study contracts with Big Pharma and biotechnology clients.”
He said the company has continued its “strong work at the start of this year,” noting that its new facilities in both London and Manchester “will not only enable the Company to screen a greater number of potential volunteers, it will also increase our total bed count to 62.”
“Considering the greater size and functionality of the new facilities, as well as their cost, the Company has executed the expansion in a highly cost-efficient manner,” he added.
Yamin Khan, CEO of Open Orphan also commented: “As a result of the changes, we have the potential to expand the scope of our business as we head into a crucial period of substantial growth across the infectious disease market. I believe we are now very well positioned with an enhanced clinical trial offering and unique volunteer and patient recruitment capacity.”
Also commenting, Robin Rogiers, Director of Clinical Delivery & Innovation of Open Orphan’s subsidiary, hVIVO, highlighted to investors: “The opening of the new primary and secondary FluCamp volunteer facilities means we now boast a truly world class clinical trial offering.”
With quarantine capacity significantly increased and volunteer recruitment capacity doubled, we will be able to expand the scope of our clinical trial business to include vaccine field trials, PK studies, bridging studies and patient trials as part of large international multi-centre studies. The increased scope also includes an enhanced virology lab services offering at QMB, which will now be able to increase its biomarker and molecular testing capabilities.”
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