Open Orphan plc (LON:ORPH) the rapidly growing CRO specialist pharmaceutical services Group which has a focus on orphan drugs and is a world leader in the provision of virology and vaccine challenge study services, has today announced the signing of a new contract with a European Biotech Company for the provision of a RSV human challenge study. The study is projected to deliver £3.2m in revenue all of which is expected to be recognised in 2020. If the study is successful, it is anticipated that an additional follow-on larger pivotal challenge study will commence end Q4 2020, delivering significant further revenue and expected to be a minimum of £7m.
· Respiratory Syncytial Virus (“RSV”) human challenge study Projected to deliver £3.2m in revenue in 2020 with the pivotal challenge study expected to commence end Q4 2020, with the potential to deliver significant further revenue expected to be a minimum of £7m.
· First contract that utilises complementary in-house Clinical Research Organisation (“CRO”) services of hVIVO and Venn Life Sciences (“Venn”) following completion of merger with hVIVO
This contract demonstrates hVIVO, part of Open Orphan, successfully converting its pipeline and reinforces its position as world leader in the provision of viral challenge studies, vaccine and viral laboratory services, supporting product development for customers developing antivirals, vaccines and respiratory therapeutics. These services are particularly relevant and topical in the environment of heightened awareness of virology following Covid-19. London-based hVIVO is unique as it has Europe’s only commercial 24-bed quarantine clinic and on-site virology laboratory and is the only company globally with the capability to run an RSV human challenge study.
This breakthrough study reinforces hVIVO’s position as the leader in the provision of virology services.
Trevor Phillips, CEO of Open Orphan, said:
“This agreement continues to endorse the importance being placed on the use of viral challenge models supporting product development for companies developing antivirals, vaccines and respiratory therapeutics. This agreement is the first agreement utilising what is now, a broader and complementary in-house service offering. All aspects of the study will be conducted within Open Orphan, leading to the elimination of sub-contractor costs and retain more contracted revenue. We look forward to delivering the work for a European Biotech Company and further developing our relationship.”
Cathal Friel, Executive Chairman of Open Orphan, said:
“This agreement demonstrates one of the benefits of the merger with hVIVO and the opportunity the broadened service offering provides in delivering a catalyst for significant revenue growth and margin expansion within the business. In the short term, the combination of Open Orphan and hVIVO is expected to result in substantial cost savings through the elimination of subcontractor costs where they can be replaced by new capabilities within the Company.”
