Hvivo acquires two clinical research units, FY revenues up 11.9pc
Hvivo
16.50p
16:55 17/01/20
Contract research organisation Hvivo said on Wednesday that it has acquired two clinical research units from German outfit CRS Clinical Research Services.
Pharmaceuticals & Biotechnology
21,522.38
16:49 31/03/25
Hvivo said the acquisition gives it "a significant footprint" in Europe, with 120 beds across two sites in Germany, and was the first step in its M&A strategy and further diversifies its services to include in-patient Phase I and Phase II trials across a broader range of therapeutic areas.
The AIM-listed group stated the total consideration for the acquisition was €10.0m in cash, funded from existing cash resources. The acquisition was expected to be earnings accretive in 2026.
Separately, Hvivo said revenues were up 11.9% in the twelve months ended 31 December at £62.7m and underlying earnings margins had improved from 23.3% in FY23 to roughly 26% in FY24.
Hvivo stated the significant uplift in revenue and margins was driven by "strong operational delivery", including the recruitment of a record number of human challenge trial participants and improved utilisation rates, delivery of the group's largest Phase II field study to date, and recognition of £4.3m client funding towards its new Canary Wharf facility.
As of 1050 GMT, Hvivo shares had sunk 9.80% to 18.40p.
Reporting by Iain Gilbert at Sharecast.com