hVIVO plc (LON:HVO), a leading provider of human challenge trial services, has made headlines with the announcement of its largest standalone hLAB contract to date. The £3.2 million project showcases the company’s growing capabilities and highlights its recent advancements in laboratory capacity.
The agreement involves hLAB, hVIVO’s specialist virology and immunology laboratory, providing exclusive services for a US-based biotechnology client. Notably, this contract includes virology and immunology lab support for an international, multi-site Phase 2 clinical study of an influenza drug candidate. With work on the study commencing immediately, hLAB is poised to deliver across the 5,000 trial participants recruited globally.
A Milestone Achievement for hVIVO
This £3.2 million deal builds on an earlier £0.5 million commitment, making it a landmark achievement for hVIVO. It demonstrates the success of the company’s standalone laboratory services, which were launched in September 2024. The majority of the project revenue is expected to be recognised in 2025, with the remaining portion following in 2026.
Commenting on this significant development, Cavendish Research Director Mike Mitchell stated, “Today’s news demonstrates further long-term value potential arising from hVIVO’s platforms, with revenue diversification alongside the company’s existing human challenge trial work.”
The Role of hVIVO’s Canary Wharf Facility
Central to hVIVO’s ability to secure such large-scale contracts is its new, state-of-the-art facility at Canary Wharf. Since its opening, the site has tripled the company’s laboratory capacity, enabling a broader range of standalone virology and immunology services for preclinical and clinical drug development. These include assay development, sample handling, and optimisation via a sophisticated biobank facility.
The added capacity has positioned hVIVO as a key partner for pharmaceutical innovators, creating a new, high-margin revenue stream. Recent successes, such as the £11.5 million contract signed in December with a global pharmaceutical client, further underline the company’s growth trajectory.
Final Thoughts
hVIVO plc’s latest contract is not only a testament to its operational excellence but also a reflection of its expanding role within the healthcare sector. As the company continues to attract high-profile clients and diversify its revenue streams, the future looks promising. Investors will be watching closely as hVIVO delivers on this project and releases its FY24 trading update by February 2025.
