Hvivo Plc · LSE:HVO
Hvivo — FY2022 Earnings Presentation
32 slides from Hvivo's earnings presentation, April 2023
Slide 1: Full Year Results Presentation
Full Year Results Presentation April 2023 Ticker: HVO
Slide 2: Disclaimer
Disclaimer • The contents of this presentation and the information which you are given at the time of the presentation have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (the “Act”). Reliance on this presentation for the purpose of engagi
Slide 3: Who we are
Who we are Mission Delivering today’s healthcare by empowering tomorrow’s innovation. Vision To transform global healthcare by revolutionising the drug development process through scientific ingenuity. Values Innovation & Agility Growth Integrity & Welfare One Team
Slide 4: 2022 – A Transformational Year
2022 – A Transformational Year Strong Financial £50.7M 17.9% £28.4m FY22 FY22 Cash Balance Performance Revenue EBITDA Margin at 31 Dec 2022 Exceptional 7 413 120k+ Operational Challenge Trials in Volunteer Inoculations FluCamp Leads Execution Quarantine in 2022 in 2022 Generated in 2022 Building on
Slide 5: Financial performance review
Stephen Pinkerton Chief Financial Officer Financial performance review
Slide 6: A Growing Profitable Business
A Growing Profitable Business Revenue EBITDA EBITDA Margin Revenue CAGR of 51% 1000% £9.1m 30% 17.9% £50.7m 7.4% £2.9m £39.0m 0% 0% £22.2m -£6.1m -27.5% -1000% -30% 2020 2021 2022 2020 2021 2022 2020 2021 2022 • Revenue increase of 30% year-on-year • 2022 EBITDA of £9m driven by strong • 2022 EBITDA
Slide 7: A Sustainable Cash Generative Business
A Sustainable Cash Generative Business £35m Exceptional year end cash position £1.5m £14.5m £30m £28.4m (£1.8m) • Strong cash position with £28.4m as (£1.4m) at 31 December 2022 £25m • No debt at year end £20m £15.7m • Robust net working capital position • Key drivers: £15m 1. Advanced fees from rec
Slide 8: Rewarding our Shareholders
Rewarding our Shareholders Special, one-off dividend of 0.45p per share, equating to an aggregate of c.£3m to be approved at the Annual General Meeting, reflecting exceptional cash generation in addition to our robust balance sheet 25 April Financial Results announcement date 4 May Ex-dividend date
Slide 9: Strong Momentum into 2023 and Beyond
Strong Momentum into 2023 and Beyond Well positioned for future growth £55m £50.7m • Full year guidance of £55m revenue for 2023 • Full visibility for FY23 and into H1 2024 £39.0m • Targeting 2023 EBITDA margin in the mid-to- high teens • Key focus for 2023: 1. Conversion of contracted orderbook to
Slide 10: A long-term sustainable growth model
Yamin “Mo” Khan Chief Executive Officer A long-term sustainable growth model
Slide 11: Increase in Recognition of Challenge Trial as a Concept
Increase in Recognition of Challenge Trial as a Concept 1. Academia 2. Regulators • Zika • FDA • Escherichia coli • 4x Fast Track • Pending Pfizer RSV vaccine • Norovirus • MHRA • Shigella • Pending Pfizer RSV vaccine • Hepatitis C Market • Direct customer interactions 3. Commercial Influencers 4. N
Slide 12: The Expanding Human Challenge Trial (HCT) Market
The Expanding Human Challenge Trial (HCT) Market Challenge Study Market – what are the key drivers? Infectious New Climate Disease Precision Medicine New Treatment Methodologies Challenge Change Market Agents Mosquito- Omicron Combo- Increased Specific borne Flu B challenge vaccine Mucosal treatment
Slide 13: World Leading Human Challenge Model Offering
World Leading Human Challenge Model Offering Challenge Agents Influenza RSV HRV Malaria Asthma SARS-CoV-2 hMPV Dengue H3N2 Perth Memphis HRV 16 P. falciparum HRV 16 Pre-Alpha Strain A Dengue 3 H3N2 Wisconsin HRV 14 Delta Dengue 4 H1N1(F) Omicron Flu B H5N1 Fully active / In development / Potential f
Slide 14: Unique End-to-End Human Challenge Service
Unique End-to-End Human Challenge Service Conduct Swab collection Isolate virus characterisation Conduct Human from community & Produce GMP study to determine Challenge Trial (HCT) acquired disease grade virus batch best dose of virus Typical challenge study starting point 1 2 3 Broader scope of wor
Slide 15: FluCamp Recruitment Platform
FluCamp Recruitment Platform 80% More than 80% of clinical trials in the US fail to meet their patient enrolment timelines1 2022 FluCamp Improvements • Online Self Booking 55% Patient recruitment issues account for 55% of cancelled clinical trials2 • New CMS system • Online pre-screening for volunte
Slide 16: A Growing Trend
A Growing Trend Increasing Number of Active HCTs Increasing Number of Volunteers per HCT 140 120 100 80 60 40 20 0 2019 2020 2021 2022 2023F 2019 2020 2021 2022 2023 • Higher number of HCTs: • Larger sample size (#volunteers/trial) - Increased demand for HCTs - To achieve greater utility of data - M
Slide 17: Multiple Challenge Agents – Driving Efficiency
Multiple Challenge Agents – Driving Efficiency #Inoculations per Quarter per Challenge Agent (Contracted) Agent 1 Agent 2 Agent 3 Agent 4 Agent 5 Agent 6 Agent 7 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 • Volunteers screened against multiple challenge agents • Increased profit mar
Slide 18: Case Study
Case Study Biotech Big Pharma RSV vaccines are expected to hit the market in 2023, accelerated through the use of human challenge SAN DIEGO, March 01, 2023 — Cidara Therapeutics, Inc. (NASDAQ: CDTX) Cidara Therapeutics announces promising The FDA is expected to make a final decision on the approval
Slide 19: Correlation Between Field and Challenge Trial Data
Correlation Between Field and Challenge Trial Data Pfizer RSV Challenge Study Field Study 100% 100% 62 participants ~32,000 participants 86.7% 85.7% 80% Vaccine efficacy (%) 77.8% 66.7% 65.1% 62.1% 60% RSV PCR RSV PCR RSV PCR RSV PCR RSV Culturable ARI total ARI medically LRT-RSV ARI medically LRT-R
Slide 20: Diverse and Growing Sales Pipeline
Diverse and Growing Sales Pipeline Record Contract Orderbook Pipeline Distribution by Region Pipeline Distribution by Client Type 8% 2% 2% Dec-22 £76m US & Canada Biotech 26% EMEA 39% 59% Pharma 65% APAC Dec-21 £46m MENA Medtech Dec-20 £42m Pipeline Influenza 3% 6% Distribution RSV by Model 11% 2% 3
Slide 21: Non-Challenge Offerings
Non-Challenge Offerings Bench-to-Bed Model hVIVO Non-Challenge Services Venn Consulting Services Clinical QA Non- Laboratory Volunteer Regulatory CMC Clinical Biometry New Services Site Consulting Clinical Pre- and CAP Drug- B2B Post Re- Phase II/III accreditat- Device ATMP marketing Challenge purpo
Slide 22: Venn - Continuing to Grow and Expand
Venn - Continuing to Grow and Expand 25 Years €3.2m New office at Leiden Bio Science Park Strong relationships with 2-year contract announced with Driving collaboration & interaction with repeat customers major global pharma client potential customers from the largest life science community in Benel
Slide 23: Attractive Market Dynamics
Attractive Market Dynamics The infectious disease clinical trial £700m+ The estimated market size for challenge study CRO services by 20281 $5.5B+ market is projected to reach over $5.5 billion by 20274 Active vaccine, anti-viral and respiratory Active vaccine, anti-viral and respiratory 2,500+ comp
Slide 24: hMPV & Dengue – New Market Potential
hMPV & Dengue – New Market Potential Human metapneumovirus (hMPV) Dengue Increasing focus by biopharma One of the top ten global health threats according to WHO 4-18% Of people with lower respiratory tract infections have hMPV (1) >50% Of the worlds population is at risk of dengue infection(5) 5-16%
Slide 25: Update on Non-Core Assets
Update on Non-Core Assets PrEP Biopharm • hVIVO holds 62.62% of PrEP Biopharm Limited • PrEP Biopharm Limited to commence solvent liquidation in 2023 Imutex • hVIVO holds 49% of Imutex Limited, joint venture with PepTcell • Full impairment of the £7m carrying value of the investment in Imutex is pru
Slide 26: Environmental, Social & Governance
Environmental, Social & Governance hVIVO’s success is underpinned by rigorous governance and a growing focus on its environmental & social impact hVIVO has a long history of scientific research and discovery which has helped to advance global health A focus on a culture of equality, inclusion and di
Slide 27: Investment Case
Investment Case Strong Fundamentals World Leading Capabilities • Record revenue, EBITDA and Sales • The only HCT-dedicated CRO • Strong cash position • Team with unique experience and expertise • Improving operational efficiencies and margins • Sole HCT provider for Big Pharma Expanding Market Posit
Slide 28: Appendix
Avivo formerly Open Orphan Appendix
Slide 29: History of hVIVO
History of hVIVO 1946 1989 2001 2001-2007 UK Government establishes the Common Cold Unit closes. Retroscreen’s first Retroscreen recruits 800+ human challenge Common Cold Retroscreen Virology is human challenge influenza volunteers Unit in Salisbury, UK. founded by Prof John Oxford trial & Pat Meeki
Slide 30: Facilities Overview
Facilities Overview QMB Clinic QMB Laboratories 32
Slide 31: Facilities Overview
Facilities Overview Whitechapel Clinic and Screening Centre Plumbers’ Row Corporate Office & Screening Facility Manchester Screening Centre Biobank 33
Slide 32: Stay in touch
Avivo formerly Open Orphan Stay in touch 0800 Ticker: HVO