hVIVO plc - Preliminary results

16 Apr 2015

AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014

hVIVO plc (AIM: HVO), the pioneer of human challenge models of disease, is pleased to announce its audited preliminary results for the year ended 31 December 2014.

Financial Highlights 

- Revenue reduced to £18.5 million (2013: £27.5 million);
- Gross profit £5.5 million and gross profit margin 29.6% (2013: gross profit £8.3 million and gross profit margin 30.2%);
- Investment in R&D expense (excluding provision against virus inventory) rose to £10.7 million (2013: £1.2 million) reflecting expansion of our discovery research and product validation capabilities;
- Cash outflow from operating activities of £16.6 million (2013: £2.2 million) and purchase of property, plant and equipment of £1.4 million (2013: £3.1 million);
- Successful fundraising completed in the year raising £33.6 million before expenses (2013: £25.5 million raised); and
- Strong financial position with short-term deposits, cash and cash equivalents of £50.8 million at 31 December 2014 (2013: £35.8 million)

Operational Highlights

- Added new Board members that bring market and corporate development expertise that align with our broader growth strategy
- Deepening our discovery research capabilities, strengthening our strategic leadership and building out our commercial expertise, including building a global sales team pursuing both clinical trial services and also collaborations around our Pathomics capabilities
- Accelerated strategy for broadening our human challenge model platform to discover novel biomarkers and drug targets that will shepherd the next generation of therapeutics and diagnostic products
- Conducted landmark RSV product validation studies for Alios and Gilead
- Developed viral exacerbation challenge model for asthma
- Completed Activiomics acquisition, adding powerful technology and key expertise for protein identification as we progress our Pathomics discovery products
- Successfully characterised new H3N2 virus for challenge model studies
- Established purpose built research and development laboratory facility in Welwyn Garden City
- Attracted more than 190,000 volunteers over the last 3 years to participate in clinical studies and achieved 97% on-time enrollment success rate
- Launched new name today that reflects our pioneering vision: hVIVO

Commenting on today's results, Kym Denny, Chief Executive Officer, said:

"This was a year of many firsts for us. With fewer than anticipated human challenge clinical trials being conducted in 2014 due to market shifts, our revenue was £18.5 million with gross profit margin of 29.6% and cash as at 31 December 2014 of £50.8 million.  We took advantage of this operational gap by accelerating hVIVO's R&D programmes and our "Pathomics" approach, combining omics and pathway analysis.  Following investor support and a successful £33.6 million fundraise in August 2014, we fast-tracked our sample collection capabilities to deliver the first influenza pathomics map and the first commercial asthma model.  We conducted two landmark studies in RSV in record time and proudly watched our RSV model transform RSV disease research. We are well placed for achieving our objectives for 2015 and remain fully engaged with our customers regarding both our product validation and pathomics capabilities and opportunities."
 

For further information please contact:

hVIVO plc                                                                                          +44 207 756 1300
Kym Denny (CEO)
Graham Yeatman (Chief Financial and Business Officer)

Media Enquiries                                                      +44 203 021 3933 / +44 7854 979 420
Colin Paterson (Director of Marketing, Communication and PR)          

Numis Securities Limited                                                                      +44 207 260 1000 
Michael Meade / Freddie Barnfield (Nominated Adviser)
James Black / Michael Burke (Corporate Broking)
 

Notes to Editors:

hVIVO plc ("hVIVO") is a life sciences company pioneering a technology platform of human disease models to accelerate drug development and discovery in respiratory and infectious diseases.  Based in the UK, hVIVO has conducted over 40 clinical studies, involving more than 1,950 volunteers for a range of leading industry, governmental and academic clients.

To read the full announcement, please click here