Open Orphan PLC (AIM:ORPH, OTC:OPORF) said its hVIVO arm has won a £6.2mln contract with a US biotechnology company to test its antiviral candidate, the third influenza human challenge study contract signed this year.
The hVIVO Influenza A model will be used in the clinical trials, which are expected to start before the end of the year and will be conducted at hVIVO's state-of-the-art facilities in London.
Open Orphan said the revenue from the contract is likely to be recognised across 2022 and 2023 financial years.
It said the growing demand for influenza human challenge studies comes as attention switches to potential future flu outbreaks, with an estimated 1bn cases per year, including 3-5mln severe cases and 290,000-650,000 deaths.
"That the client has chosen us to run this study is testament to our position as the world leader in testing infectious and respiratory disease vaccines and antivirals using challenge studies," said Yamin 'Mo' Khan, chief executive of Open Orphan, with hVIVO boasting three decades of experience and expertise in safely conducting challenge studies across a range of respiratory viruses.
The US client company for this latest contract has already published preliminary data to demonstrate a favourable pharmacokinetic and safety profile, with the drug candidate exhibiting a novel mechanism of action and differs from previously approved drugs.
"Furthermore, the contract underlines the increasing demand in the infectious disease clinical trial market, which is expected to grow to a value of over $5.5 billion by 2027," Khan added.
"With this increasing demand in mind, we expect to continue to see our work coming from a broad range of infectious and respiratory diseases, and from companies ranging from smaller innovative biotechs to Big Pharma."