Open Orphan PLC (AIM:ORPH, OTC:OPORF) said its subsidiary hVIVO signed a contract worth US$13.4mln (£10.13mln) with a US biotechnology company to test its novel antiviral candidate using the hVIVO Influenza Human Challenge Study Model.
The study is expected to start in the second half of 2022 and will be conducted at hVIVO's state-of-the-art quarantine facilities in London, the company said in a statement.
It expects most of the revenues from the contract to be recognised in 2022.
Open Orphan expects to sign an increasing number of contracts in this area as the Coronavirus (COVID-19) pandemic has highlighted the need for more investment from governments and Big Pharma to develop new treatments for infectious diseases, including flu, that have the potential to cause the next pandemic.
hVIVO has two decades of experience and expertise in safely conducting challenge studies across a range of respiratory viruses, including various strains of influenza, respiratory syncytial virus (RSV), human rhinovirus (HRV - common cold virus), malaria, asthma and, from October 2020, the SARS-CoV-2 virus.
READ: Open Orphan hails results of flu trial carried out at hVIVO facility.
"This contract demonstrates the company's continued ability to convert its leading portfolio of challenge study models into substantial contracts, with signed contracts across a number of our challenge study models including RSV, asthma, hRV, and flu in the clinic next year,” said Cathal Friel, executive chairman of Open Orphan.
“This underlines our market position as the world leader in the testing of vaccines, antivirals and respiratory products using human challenge trials.
"The recent emergence of the Omicron variant has illustrated the threat of pandemic infectious diseases, and as a result, pharma companies globally are looking to address the next cohort of infectious diseases which have potential to reach pandemic level, and are developing new therapeutics to help tackle them.
“Influenza is high on this list, and we expect to sign more contracts of this type as the infectious disease market grows exponentially in the coming years to be worth US$250bn by 2025."