Hvivo client cancels 'significant' HCT trial contract

(Sharecast News) - Contract research organisation Hvivo has received notification that "a significant human challenge trial" contract has been cancelled, alongside a postponement and the cancellation of a smaller study.

Hvivo said on Friday that the cancellations were believed to be related to current uncertainties in the pharmaceutical industry and the "continued depressed biotech financing market".

"The current volatility in the pharmaceutical industry, particularly in the US, is impacting the whole CRO industry and has led to an increase in cancellation rates, postponement of clinical trials, and delays in approvals for new projects," said Hvivo.

The AIM-listed group stated it "remains confident" that the underlying concept of human challenge trials and highlighted that its sales pipeline was at a record level.

Hvivo now has revenues of £47.0m of contracted for FY25, inclusive of cancellation and postponement fees, but noted that it expects to achieve further contract wins during the course of FY25.

However, Hvivo warned that should these fail to materialise, this would result in a mid-single-digit operating loss for the full year. It also noted that all but one of its contracts for FY25 had already commenced and, as such, believes there to be a low risk of any further cancellations.

As of 0855 BST, Hvivo shares had sunk 56.79% to 7.0p.

Reporting by Iain Gilbert at Sharecast.com

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