Shares in Hvivo nosedive as it loses key contract and postpones another
The company, which is listed in London, informed the market on Friday it had received notification of the cancellation of a 'significant human challenge trial', alongside the postponement of another, as well as the cancellation of a 'smaller study'.
Human challenge trials, where products are tested on humans in a controlled environment, make up a significant portion of the group's business.
Hvivo said the client decisions are believed to be related to the 'current uncertainties' in the pharmaceutical industry and the 'continued depressed' biotech financing market.
READ MORE
'The current volatility in the pharmaceutical industry, particularly in the US, is impacting the whole contract research organisation industry and has led to an increase in cancellation rates, postponement of clinical trials, and delays in approvals for new projects,' it said.
The group's board said it 'remains confident' the underlying concept of human challenge trials and their place in the drug development process is 'stronger than ever'.
It said the company's sales pipeline is at a 'record level' and includes some 'large, high probability opportunities' that are in 'advanced discussions', and which could commence in late 2025 and provide significant revenues in its full year 2026.
The company currently has £47 million (€56 million) of revenue contracted for its full year 2025, which is inclusive of cancellation and postponement fees.
It said it expects to achieve further contract wins during the course of the year, but that should these not materialise, revenues of £47 million would result in a mid-single digit operating loss before exceptional items for the full year.
All but one of the contracts for 2025 have already commenced and the board believes there is 'a low risk' of any further cancellations.
Hvivo gave revenue guidance in April of £73 million for 2025 and said 70 per cent of that was contracted. Davy analyst Colin Grant pointed out this implies it had contracts of around £51 million on its books at that time.
'The company is now saying that it has £47 million of contracted revenue,' he said. 'This includes some cancellation fees.'
Mr Grant said Hvivo is 'likely' to win more contracts during the remainder of the year, which 'could boost revenues and earnings'.
He said the company is 'net cash' so remains in a 'strong position to execute its strategy of building a sustainable and diversified business'. He added that the role of human challenge trials in the drug development industry 'remains extremely favourable'.
The company said it will provide further clarity around outlook later in the year and will update the market as new contracts are signed.
Hvivo chief executive Dr Yamin 'Mo' Khan said he was 'disappointed' by the developments, but is 'still confident in the continued growth of human challenge trials and the overall prospects' for the company.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
8 minutes ago
- Irish Times
Jewellery chain Claire's appoints administrators to business in Ireland and Britain
The Irish and British businesses of struggling jewellery chain Claire's has fallen into administration, putting 2,150 jobs at risk. The retailer formally appointed insolvency practitioners from Interpath Advisory on Wednesday, a week after the chain's parent group filed for bankruptcy protection in the US. Interpath had been recently tasked by the US parent company to find a buyer for the European operation but, according to reports from the UK, the company struggled to find a financial backer. One industry source said that as many as one-third of its shops might be closed under a restructuring programme. Claire's, known for selling colourful necklaces and bracelets and offering ear piercing services, has 306 stores in Ireland and Britain aimed at the teen and preteen market, and 2,150 staff. That includes 20 stores in Ireland. READ MORE It recorded a pretax loss of £4 million on sales of £137 million according to its most recent results for the year to February 3rd, 2024. Administrators at Interpath, which had been trying to sell the business, said shops will remain open for now as they assess options for the chain, including 'exploring the possibility of a sale which would secure a future for this well-loved brand' shorn of its liabilities. Customers will no longer be able to buy goods online. The update comes after the wider Claire's group, which operates 2,750 stores in 17 countries, applied for Chapter 11 bankruptcy protection in a Delaware court. The company last week said that it was in discussions with vendors and landlords about the future of its North American stores. Claire's previously filed for bankruptcy in 2018, exiting Chapter 11 in 2022. The Illinois-based group is owned by a group of investment firms, including Elliott Management and Monarch Alternative Capital. It has also had two failed attempts at a stock market IPO. Last week, the group blamed 'increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail' for the bankruptcy, as well as 'debt obligations'. The retailer's trading difficulties are understood to have been exacerbated by uncertainty surrounding tariffs imposed on China by the US administration, which is likely to have seen its overheads increase substantially in recent months. The parent company said it has between 25,001 and 50,000 creditors. Claire's Irish and British business is the second high-street brand to battle to maintain a presence on the high street in as many weeks. Fashion retailer River Island managed to avert administration after a court approved a restructuring plan last week that includes the closure of 33 of its 230 stores. – Copyright The Financial Times Limited 2025
Irish Times
38 minutes ago
- Irish Times
Family of recently deceased boy Harvey Morrison Sherratt to meet Simon Harris
Tánaiste Simon Harris will meet the family of Harvey Morrison Sherratt (9) who died in recent weeks following years of suffering due to spina bifida and scoliosis. . He had been subject to delays in accessing urgent scoliosis surgery, during which time he experienced significant pain and a reduced quality of life. He underwent surgery at the end of last year. He died on July 29th, although no cause of death has been established, his mother said in a post on X last week. READ MORE Harvey's parents Gillian Sherratt and Stephen Morrison, from Clondalkin in Dublin, have been leading a social-media campaign calling for the resignation of Mr Harris following their son's death. In 2017, when he was minister for health, Mr Harris pledged that no child would wait more than four months for scoliosis surgery by the end of that year. In a post on X, Ms Sherratt called on the Tánaiste to think 'as a parent of young children'. 'While you create memories with your children, I think about how memories are all we have left, and any future memories made will always have a void. While you kiss them goodbye for the day, I think about when I kissed Harvey goodbye for the last time,' her post said. Mr Morrison said his son was 'unique', but said 'what isn't unique is the way he and other children and people with disabilities are being failed. It is up to us to stop it.' They have called for a statutory inquiry into the handling of scoliosis in Ireland. Harvey Morrison Sherratt's parents Stephen Morrison and Gillian Sherratt have called for a statutory inquiry into the handling of scoliosis in Ireland. Photograph: Collins It emerged last year that Harvey had been removed from Children's Health Ireland 's (CHI) urgent scoliosis surgery waiting list, without his family being informed. CHI was contacted for comment. It previously said it could not comment on individual cases but that waiting lists are 'constantly changing, as children and young people have their surgeries and come off the list, new patients are added'. 'Important progress is being made every month,' it said. A spokesman for Mr Harris said the Tánaiste had spoken to Ms Sherratt, Harvey's mother, on Wednesday and they 'have agreed to meet in the near future'. 'The Tánaiste has also sought, through the Minister for Health, a full multidisciplinary report on the timeline of care provided to Harvey.' During a visit to Clonmel, Minister for Finance Paschal Donohoe said Mr Harris 'did all he could' when he became aware of the needs of the family 'in terms of engaging with the Department of Health and HSE'. 'I am very conscious that we have a family who have lost a loved one, and are grieving at the moment. They have had such a difficult experience and we have to respect that, and to allow them to make the points that they believe are important,' he said. 'There are still families who need more support, there is still more progress that we need to make.' Sinn Féin health spokesman David Cullinane said the 'tragic and avoidable passing of Harvey Morrison Sherratt must bring an end to the neglect of children with significant medical needs'. 'Despite the commitment made in 2017 by Simon Harris that no child would wait longer than four months for scoliosis surgery by the end of that year, as of July there are still 38 children waiting longer than six months just for an appointment date.' Speaking to RTÉ on Wednesday, Aontú leader Peadar Tóibín called for Mr Harris to resign over his handling of the case.
Irish Times
39 minutes ago
- Irish Times
The Irish Times view on the Small Claims Court: relevance must be protected
The Small Claims Court would appear to be a victim of its own success. Established in 1996 as an arm of the District Court, it has helped many consumers to resolve small disputes without going to the expense of hiring a solicitor. It costs €25 to bring a claim but only actions involving goods, services, damage to property or non-return of key money are admissible. However, the use of the court is declining according to the Courts Service with only 2,081 cases lodged with it last year, a fall of 55 per cent on the previous year. Amongst the possible explanations for the decline advanced by the Courts Service is the intriguing notion that a greater awareness among goods and service providers of the small claims process – and the likelihood that they will lose if they end up in the court – has brought about a more conciliatory attitude when it comes to dealing with consumer complaints. There is no doubt that the court does seem to look kindly on plaintiffs. Last year 70 per cent of the 478 small claims cases which went ahead with a hearing were successful, according to the Courts Service. Many others were settled, usually following mediation led by court officials. The Competition and Consumer Protection Commission (CCPC) has put forward another somewhat more prosaic explanation for the decline in use of the court. The €2,000 limit on cases that can be brought before the court 'is out of step with many of the most basic and unavoidable expenses faced by consumers today,' according to the watchdog. READ MORE The CCPC – which refers a significant number of complaints to the court each year – points out that many of them are about issues such as car purchases or home improvements. These fall within its remit and are well suited to its procedures but are generally excluded from its jurisdiction by virtue of the €2,000 limit. The limit was last raised – from €1,000 – in 2006. Cumulative inflation since then has been close to 30 per cent, meaning a review of the limit is warranted. The court's success in settling disputes suggests that the adjustment should be even greater than this.
