RE: Good Write up5 Feb 2020 11:10
Friel says that, in December, just weeks into negotiations between Open Orphan and hVIVO, the latter company was able to go back to three existing challenge study customers and now offer additional services including CMC, Phase I, Phase II, Data and Statistics. In the past, hVIVO was never able to offer these services to existing customers despite regularly being asked. The enlarged group will use part of the proceeds from its recent placing to build up yet more revenues by taking advantage of more of these types of opportunities:
“hVIVO has a really sticky business model because it is a world leader in virology challenge studies. However, it has continually turned down work in the earlier preclinical and phase I trials and also had to turn down phase II clinical trials work that they get offered to do once the challenge study is completed, because, prior to its merger with Open Orphan, hVIVO did not have the capability to provide these clinical study services. On the other hand, we have never had enough work in those areas despite being able to service them – particularly phase 2 trials which are £10-£12 million contracts,” he said. “The two companies fit like a glove, and we will be pursuing new contracts and developed contracts with existing hVIVO customers moving forward.”