Open Orphan (ORPH ) announced this morning the signing of a contract for the manufacture of a human challenge virus with an existing top 5 global pharmaceutical client.
Open Orphan is a world leader in testing infectious and respiratory disease products using human challenge critical trials. The contract was awarded to its subsidiary hVIVO. The project is already underway, with GMP-compliant manufacturing activities expected to conclude by end of Q3 2022. Next, the Company expects a characterisation study and a human challenge study to take place. The former is intended to establish the right dose for the virus to prompt a safe and reliable infection in healthy volunteers.
Revenue from the manufacturing process will be recognised in 2022.
Manufacture of new challenge viruses will position hVIVO favourably to meet demand from the global pharmaceutical industry as they continue the battle against infectious disease. It will also improve and expand hVIVO's offerings of human challenge studies in infectious diseases where new variants emerge continuously.
Yamin 'Mo' Khan, CEO of Open Orphan, commented: "We are delighted to have secured this challenge virus manufacturing contract, from an existing Big Pharma client. This contract is testament to our world-class capabilities in the entire challenge trial process, beginning with virus manufacture, through to characterisation study and challenge study execution. This contract illustrates our ability to leverage this to build deep, long-lasting relationships with our clients over significant periods of time.
"This contract is also a further example of the Company's ability to secure repeat contracts from its existing base of Big Pharma clients, who have great confidence in our decades of world leading clinical trial experience. With this experience coupled with our expanded offering following the facilities expansion, I look forward to providing further clinical services support to the significantly enlarged and growing infectious and respiratory disease market."
The market reacted positively to the news, with ORPH up nearly 7% in early afternoon trading.
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