Healthcare company hVIVO, formerly Open Orphan, said today it expects to report full year revenues of £56m for 2023, a 15.5% increase on the £48.5m reported in 2022.
The company said the figure is slightly ahead of previous market expectations and was driven by the continued strong delivery of human challenge trials and consulting services.
In a trading update for the 12 months to the end of December, the company said its growing operational team delivered its highest number of inoculations to date, driving increased revenues and improved margins.
In addition to the revenue generated, the company said it also recognised Other Income relating to R&D tax credits of £2.6m, up from £2.2m in 2022.
hVIVO said today it had £37m of cash by the end of 2023, an increase from £28.4m at the end of 2022. It said the increase in cash generation is due to improved margins and the upfront non-refundable quarantine booking fee from new contracts.
The company paid a one-off special dividend of £3m last year and said today that due to its cash generative qualities and the substantial cash balances available to it, the Board intends to start the payment of an annual dividend.
hVIVO said it on schedule to open its new state-of-the-art facility in Canary Wharf in London in the first half of 2024, which will allow it to meet the growing demand for human challenge trials.
The move, which is largely funded by hVIVO clients, will allow the group to further scale and drive efficiencies across its business, it added.
The company said that as a result of the current strong outlook and performance of the business, it expects to reach revenues of £62m in 2024.
Dr Yamin 'Mo' Khan, chief executive of hVIVO, said the company had shown strong financial and operational performance, delivering record-breaking results across all key parameters last year.
"The sustained success of the group, coupled with a growing orderbook, reinforces the resilience of our business model and reaffirms the stability of the market," the CEO said.
"The infectious disease market has witnessed increased interest from both commercial and non-profit entities, as well as a notable uptick in M&A activity. A significant highlight of the year was the market authorisation of the first-ever vaccine incorporating human challenge trial data as part of its submission package," he noted.
