(Alliance News) - Shares in Open Orphan PLC leapt up on Friday after it announced a new GBP13.4 million contract with a US-based biotechnology company to test its novel antiviral drug.
Shares in the pharmaceutical services firm were trading 12% higher in London at 20.75 pence each.
The contract was won by hVIVO, a subsidiary of Open Orphan. It will see the unit test the unnamed US firm's novel antiviral candidate using hVIVO's influenza human challenge study model.
The study is expected to commence in the second half of 2022, with the majority of revenue to be recognised next year.
"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," commented Executive Chair Cathal Friel.
"This underlines our market position as the world leader in the testing of vaccines, antivirals and respiratory products using human challenge trials."
Open Orphan said it expects to sign an increasing number of contracts in similar areas after the global pandemic highlighted the increased investment needed from governments and pharmaceuticals to develop treatments for a range of infectious diseases.
By Will Paige; willpaige@alliancenews.com
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