Drug development services provider hVIVO PLC (LON:HVO) has its strongest sales pipeline for several years, according to chief executive Trevor Phillips.
This month, the group signed an £11.9mln contract that will start to contribute from October and throughout 2019.
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"The contract was testament to our unique respiratory syncytial virus (RSV) challenge study capability," said Phillips.
‘Significant’ contract negotiations are also underway with top-tier pharmas for additional studies to initiate throughout 2019 that would lead to a five-year high in utilisation rates for hVIVO's quarantine unit, he added.
“We are experiencing a lot of interest from leading pharmaceutical companies for the development of new challenge models in RSV, asthma and COPD and we expect to be able to convert a number of these into contracts.”
Revenues in the half year June rose to 26% to £4.9mln, while losses dropped to £5.3mln from £9.1mln as R&D spending was reined back, something that will continue in 2019, Phillips said.
Cash holdings at the half year were £10.7mln.
WATCH: hVIVO PLC gearing up for Phase III trial of its flu vaccine FLU-v
hVIVO got a major boost in June when flu vaccine FLU-v performed strongly in a Phase II trial.
Talks are now underway to find a partner or even sell Imutex, the joint venture with SEEK that is developing FLU-v.
Other options include a licensing agreement or a non-dilutive funding arrangement with a collaborator to run the Phase III development and study for FLU-v.
Imutex is also developing a vaccine (AGS-v) for mosquito-borne diseases and first data from a Phase 1 safety study is due by the end of the year.
Phillips said it has been a good start to 2018 with the group building on its lead position in viral challenge-based human disease models.
“We aim to create a stronger range of services that, alongside our operational efficiencies, will enable hVIVO to be profitable and generate cash from its operations in 2019.”
hVIVO added that Graham Yeatman, chief financial and business officer is to step down at the end of December.
Shelly Fraser who has been with hVIVO for two years is taking over as Finance Director with immediate effect.