Hvivo Plc · LSE:HVO
Hvivo — H1 2024 Earnings Presentation
34 slides from Hvivo's earnings presentation, September 2024
Slide 1: Interim Results
Interim Results September 2024 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: Presenters
Presenters Dr. Yamin ‘Mo’ Khan Stephen Pinkerton CEO CFO 3
Slide 4: Mission and Vision
Mission Delivering today’s healthcare by empowering tomorrow’s innovation. Vision To transform global healthcare by revolutionising the drug development process through scientific ingenuity. hVIVO Location Venn Location
Slide 5: Record H1 revenue and EBITDA margin
Record H1 revenue and EBITDA margin Building a Long-Term Sustainable Growth Model Revenue 41% CAGR EBITDA Margin EBITDA 94% CAGR £35.6m 24.5% £8.7m H1 23: £27.3m H1 23: 19.1% H1 23: £5.2m H1 22 H1 24 H1 23 H1 22 H1 23 H1 24 H1 23 H1 24 H1 22 H1 22: £18.0m H1 22: 12.6% H1 22: £2.3m Weighted Basic adj
Slide 6: Strong Progress
Strong Progress Expanded & Enhanced Facilities Established new Revenue Streams Opened state-of-the-art facility in Canary Wharf Awarded largest field study to date Completion of larger outpatient site at Plumbers Row First major field study contract signed by hLAB Launched FluCamp’s tiered recruitme
Slide 7: Stephen Pinkerton, Chief Financial Officer
Stephen Pinkerton Chief Financial Officer Continued strong KPIs aided by project acceleration
Slide 8: Record H1 Revenue
Record H1 Revenue CAGR of 41% Revenue £35.6m • 30% Revenue growth £27.3m • Acceleration of client projects • Record number of volunteers inoculated • Increase in challenge revenue per volunteer £18.0m • Six studies in quarantine across five viruses • Venn accounts for 11% of total revenue • H1 weigh
Slide 9: Margin Expansion through Strong Execution & Volume of Work
Margin Expansion through Strong Execution & Volume of Work EBITDA EBITDA Margin CAGR of 94% 24.5% £8.7m 19.1% £5.2m 12.6% £2.3m H1-2022 H1-2023 H1-2024 H1-22 H1-23 H1-24 • Volume of work leads to margin uplift • Includes one-off manufacturing costs for • Good utilisation of the overlapping facilitie
Slide 10: Highly Cash Generative Business
Highly Cash Generative Business Cash £37.1m £31.3m • Strong cash position as at 30 June 2024 • Increase in working capital following accelerated delivery of projects • Timing of new deals and receipt of upfront booking fees £15.9m • Includes £1.4m dividend paid in May 24 • No debt H1-22 H1-23 H1-24
Slide 11: Cash Flow Waterfall as at 30 June 2024
Cash Flow Waterfall as at 30 June 2024 £7.6m (£5.0m) (£1.9m) (£1.4m) £0.8m £37.0m £37.1m Cash 31 December Cash Generated Net Working Purchase of PPE Dividend Other Cash 30 June 2024 2023 from Operations Capital Movement Net working capital increase due to trade receivables timing, with cash received
Slide 12: World's Largest Purpose-Built Challenge Facility
World’s Largest Purpose-Built Challenge Facility • 90% funded by clients to accelerate their studies • Facility fee recognised across 2023 & 2024 in line with study delivery • 31% increase in total useable space • Clinical and laboratory operational efficiencies materialising • Quality enhanced with
Slide 13: Dr Yamin 'Mo' Khan, Chief Executive Officer
Dr Yamin ‘Mo’ Khan Chief Executive Officer Canary Wharf – the foundation & capacity for future growth
Slide 14: Expanding our World Leading Services
Expanding our World Leading Services Delivering on our growth strategy: optimise, scale and diversify End-to-End Human Patient Recruitment Challenge Trial Services Services Specialist Analytic Lab Clinical Site Services Services Venn Life Sciences Biospecimen Services Services New facility provides
Slide 15: HCTs – Building on our Core Business
HCTs – Building on our Core Business Further Expansion of our Portfolio: Flu B, H1N1, H3N2, RSV A, RSV B, Omicron, hMPV CL-3 Capability – e.g. Covid / Dengue Bacterial Laboratory – Bacterial challenge capability Mucosal Vaccines – New Market Bivalent / Multivalent Vaccines – New Market Transmission
Slide 16: hLAB & Biobank Services
hLAB & Biobank Services hLAB Three standalone lab contracts First major field study lab Doubled usable lab space Tripled capacity signed 2024 with record value contract won CL-3 lab fit-out complete New LIMS system New hardware purchased Assay portfolio expanded Biobank Services Repository of a rang
Slide 17: FluCamp – Volunteer & Patient Recruitment Services
FluCamp – Volunteer & Patient Recruitment Services Key Partnerships Loyal Volunteer Increased Automation access to 654 primary care Community 135 user driving efficiencies & practices serving 7 million generated social media reducing costs patients content H1 24 New FluCamp Website Launching The Flu
Slide 18: Clinical Site Services
Clinical Site Services 2 Larger Outpatient Unit Existing Resources Site service Multi-functional for field studies & FluCamp volunteer recruitment & staff contracts signed volunteer recruitment 2024 Services 1. Full scope outpatient Phase II studies 50% 50% 71% 2. Site services in large Phase II-III
Slide 19: Venn – Continued Delivery & Expansion
Venn – Continued Delivery & Expansion ATMP & Expanded multi- QA Services Multiple Virtual & In- year consultancy New contract wins Person Events Driving With existing major global following investment in New Business pharmaceutical client these key growth areas Leiden FDA Inspection Contracts signed
Slide 20: Improving Automation – Driving Efficiency
Improving Automation – Driving Efficiency Shifting from paper-based processes to a fully integrated digital system Lab Information Volunteer Management System Clinical eSource System Management System (VMS) (LIMS) • Leveraging automation – individualised Improved digitised workflow to deliver: Gener
Slide 21: Market Overview
Market Overview Continued growth in human challenge trial market Global CRO Market UK Clinical Trials Market $67.5Bn by 2029 £3.2Bn by 2028 Launch of new services into high-growth sectors Global Clinical Trial Patient Global Virology Testing Expanding services broaden Recruitment Services Market off
Slide 22: Strong Orderbook & Pipeline
Strong Orderbook & Pipeline Net Contracted Orderbook Pipeline Distribution Large Funnel of Short-Medium by Service Term Potential Opportunities £78m 15% £70m £71m c.£40m 85% June 22 June 23 June 24 Challenge Non Challenge Strong Orderbook 100% Good Visibility 2024 revenue covered existing orderbook
Slide 23: New Site Supporting our £100m Revenue Target by 2028
New Site Supporting our £100m Revenue Target by 2028 Revenue CAGR of 12.7% £10m £6m £1.1m £1.7m £100m £3.3m £15.9m £62m £56m £48.5m Strong organic growth complemented by small bolt-on acquisitions that meet the Company’s strategic and financial criteria 23
Slide 24: Questions
Avivo Questions
Slide 25: Appendix
Avivo Appendix
Slide 26: What is a Human Challenge Trial?
What is a Human Challenge Trial? A clinical trial where healthy volunteers are exposed to a pathogen to test the effectiveness of vaccine and treatments... Stage 3 Volunteers undergo full disease trajectory of infection and recovery Stage 1 Stage 2 Stage 4 Inoculation with Volunteers discharged from
Slide 27: Benefits of Human Challenge Trials
Benefits of Human Challenge Trials Scientific Clinical Development • Generates invaluable dosing, safety and • Requires fewer subjects efficacy data • Significant time savings • Helps optimise for larger field trials • No seasonal dependence • De-risks Phase III programs Benefits of Human Challenge
Slide 28: Significant Barriers to Entry
Significant Barriers to Entry USP CUSTOMERS RECRUITMENT FACILITY • Precedent EXPERTISE • Established • Challenge data relations EXPERIENCE • 50-bed CL-3 • Flucamp • Sample PRODUCTS quarantine • Sole provide to • Generic calculations big pharma • Scientific Team • Virology/ Screening Immunology • 100
Slide 29: The World's Largest Human Challenge Unit
The World’s Largest Human Challenge Unit Staff Space Kitchen Changing IMP Outpatient Unit Area Quarantine Beds Kitchen Airlock IMP Storage 29
Slide 30: driving engagement, referrals & registrations
driving engagement, referrals & registrations Scan for Video 30
Slide 31: Focus on ESG
Sustainability Highlights Focus on ESG • Sustainability is integral to our corporate ethos and operational ESG Group reports to Audit & Risk Committee framework • As a CRO we are aware of our pivotal role to expedite the development of vital medicines through our comprehensive ISO 14001 Implementati
Slide 32: A Strong History & State-of-the-Art Facility
A Strong History & State-of-the-Art Facility hVIVO’s History - Click to Watch Canary Wharf Facility Tour - Click to Watch 32
Slide 33: Facilities Overview
Facilities Overview Canary Wharf Quarantine Unit Plumbers’ Row Corporate Office & Screening Facility Manchester Screening Centre Biobank 33
Slide 34: Stay in touch
Avivo Stay in touch O6e0 Ticker: HVO