hVIVO PLC (AIM:HVO) has taken a big step towards its goal of reaching £100 million in revenue by 2028 with the acquisition of two clinical research units in Germany for £8.4 million (€10 million) from Clinical Research Services Management (CRS).
Based in Mannheim and Kiel, they will add 120 beds to hVIVO’s facilities and expand its ability to conduct early-stage clinical trials.
The acquisition marks the start of hVIVO’s plan to grow through mergers and acquisitions.
By bringing the new sites under its umbrella, the company will be able to offer a wider range of clinical trial services, including studies on healthy volunteers and patients with specific medical conditions.
CEO Mo Khan said: "CRS is a well-respected brand in the industry providing high-quality services for early-stage clinical development.
"They are one of the leading European clinical trial units with a loyal customer base, a strong team, and a history of delivering consistent revenues. I look forward to working with the CRS team and leveraging our combined expertise to deliver growth for the group."
The deal, financed from its cash reserves, also strengthens hVIVO’s European presence and provides access to a broader client base, including some of the world’s largest pharmaceutical companies.
In 2024, the two units generated nearly €20 million in revenue. While they currently operate at a small loss, hVIVO plans to invest in restructuring and integrating them into its existing business.
The company expects the acquisition to contribute positively to earnings by 2026.
In a trading update, hVIVO said it expects strong growth in 2025, with revenue forecast to hit £73 million.
Its order book for contracted work stands at £67 million, excluding a major phase III study with ILiAD Biotechnologies.
"Overall, the mid- and long-term outlook for the Group is excellent. We have laid foundations for future growth, expanded our service offerings organically and diversified to a wider range of revenue streams through the CRS acquisition," said CEO Khan.
"As such, I believe we have significantly strengthened and diversified the business and have enhanced our ability to deliver our target of growing group revenue to £100 million by 2028."