Human challenge clinical trial specialist hVIVO PLC (AIM:HVO) said it is trading in line with expectations for the year and remains on course for growth in 2026.
In the first half of the year, revenue came in at £24.2 million compared to £35.6 million a year earlier, which as flagged in a July update is a performance that reflects wider challenges in the contract research organisation (CRO) industry.
EBITDA before exceptionals dropped to £3 million from £8.7 million.
Chief executive Dr Yamin 'Mo' Khan said: "The broader CRO industry has been impacted by macroeconomic and sector-specific headwinds, and hVIVO is no exception.
"However, we are greatly encouraged by the early success of our diversification strategy and by the strength of our pipeline, with the aggregate value of customer proposals submitted in H1 2025 exceeding FY24."
New diversified service lines accounted for £7.9 million of revenue in the period, from hLAB and Clinical Services, including acquisitions, compared to a minimal contribution a year ago.
The company’s contracted orderbook was £40 million at the half-year stage, with operational highlights in the half including a £3.2 million hLAB contract, £5.5 million of new CRS contracts, and a letter of intent with ILiAD Biotechnologies for what is expected to be the world’s first pivotal Phase III human challenge trial.
Post-period, the company secured around £7 million of new Clinical Services and hLAB awards.
Cash stood at £23.3 million, down from £37.1 million a year earlier following the acquisitions of CRS and Cryostore.
A part of the diversification, a new company structure is designed to give investors greater clarity on how each part of the business is performing and help drive efficiencies and position the company to capture growth opportunities in the CRO market.
The four distinct service lines are:
- Human Challenge Trials (HCT): services currently encompassing hVIVO, hLAB and Venn Life Sciences' medical writing and biometry services
- Clinical Services: Phase I/II CRS CRO services, hVIVO and CRS clinical site services, FluCamp recruitment services, and Venn Life Sciences' medical writing and biometry services
- hLAB: hVIVO standalone laboratory services, including biobank and storage services provided by Cryostore
- Consultancy Services: Stand-alone Venn Life Sciences consulting services.