Reasons to hold7 Feb 2020 13:57
1] Flu-V
2] The Merger has given the Group a pipeline of approximately £100 million as at January 2020. The Group is focused on building long term contracts with recurring revenues. Open Orphan has confirmed signed contracts of €10.5m as of January 2020 which is the highest in its history with an additional €4m at an advanced stage with clients under an existing MSA. Open Orphan is successfully moving Venn away from short-term contracts to long-term, 3-year contracts with recurring revenues e.g. IPSEN (Nov '19) and a German Tier One pharma company (Jan '20). hVIVO has a solid pipeline of identified and pitched for contracts of £81.2m as of January 2020, which is significantly higher than the prior two years.
3] The Fundraising has been underwritten up to £2.5 million by Raglan Capital Limited, an entity controlled by Cathal Friel. Cathal Friel also intends to participate in the Placing..
4] The Group estimates savings of up to £2.3m in FY20 rising to £3.1m in FY21 from subcontracting synergies. Furthermore, the Group intends to rationalise a number of duplicate costs resulting in £0.8m of cost savings in FY20 rising to £1.3m in FY21.