Open Orphan PLC - Completion of Merger with hVIVO and Re-Admission
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("Open Orphan" or the "Company")
Completion of Merger with hVIVO ("Merger") and Re-Admission
· Completion of merger between Open Orphan and hVIVO creating a European full pharma services company in a compelling strategic combination
· Enhanced management and Board with a strong operational track record and M&A experience
o New board with the appointment of
· Combination creates a platform of highly specialised, complementary CRO service providers
· Combined robust pipeline of over
· A number of joint Open Orphan and hVIVO pitches have already been submitted to hVIVO clients with the now expanded Venn service capability
· Estimated operational synergies of
· New combined revenue model unlocks potential for substantial revenue growth and sustainable profitability - by combining Open Orphan's existing preclinical, phase 1 and Phase 2, regulatory and other services along with hVivo which is an industry leading services provider in viral challenge studies and laboratory services creating a leading European specialist pharma services company
· Proposed placing to raise
"I am hugely excited by the combination of Open Orphan and hVIVO. We have a fantastic team, substantial revenue potential and the opportunity to grow quickly in the year ahead. I am personally participating in the placing as I believe in the strategy of the business and its ability to deliver substantial returns to shareholders in the next 12 months."
"We now have an industry leading team with the ability to generate substantial revenue growth and profitability, delivering the leadership's vision to create a successful European full pharma services company. With the now complementary and wider specialist CRO services offering, it gives us the opportunity to generate substantially larger revenues and over the full-time course of the customer relationship. With a robust combined pipeline, I am confident we have the solid platform to achieve our goals."
Strategy - delivering on our pipeline and enhancing returns through business synergies
Since the acquisition of
In addition to the Company's focus on delivering the pipeline, it plans to supplement returns through immediate cost savings and operational synergies and near and medium term revenue synergies. 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 enlarged Group. The Group estimates savings of up to
The Group expects to deliver total synergies of
Delivering the strategy is an enhanced leadership team with a track record of operational success and creating shareholder value. The new management of hVIVO, who joined eighteen months ago, has a track record of successfully restructuring and re-positioning the business for profitability having delivered significant savings of
Open Orphan is proposing a placing of
It is expected that further announcements regarding the Placing will be made in due course.
Open Orphan intends shortly to exercise its rights pursuant to the provisions of sections 974-991 of the Companies Act 2006 to compulsorily acquire the remaining hVIVO Shares. The compulsory acquisition will be settled on the same terms as the Merger and the relevant hVIVO shareholders will be entitled to receive 2.47 Open Orphan shares for every one hVIVO share. Statutory notices are expected to be posted in the coming days to any hVivo shareholders who have not accepted the Merger offer with further details.
Arden Partners (Nominated Adviser and Joint Broker) Tel: +44 (0)20 7614 5900
Davy (Euronext Growth Adviser and Joint Broker) Tel: +353 (0)1 679 6363
Camarco (Financial PR) Tel: +44 (0)20 3757 4980
Notes to Editors on Open Orphan:
Open Orphan is a rapidly growing European full pharmaceutical services company with a focus on orphan drug and specialist services, comprising two commercial specialist CRO services businesses (Venn and hVIVO) and a developing early stage orphan drug genomics data platform business capturing valuable genetic data from patient populations with specific diseases with designated orphan drug status and incorporating AI tools. In
This Announcement and the information contained herein is not for release, publication or distribution, directly or indirectly, in whole or in part, in or into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.
This Announcement is for information purposes only and does not constitute or form part of any offer to sell, or any solicitation of an offer to buy, securities in the Company.
No statement in this Announcement is intended to be a profit forecast and no statement in this Announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.
This information is provided by RNS, the news service of the
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