Hvivo Plc · LSE:HVO
Hvivo — FY2023 Earnings Presentation
37 slides from Hvivo's earnings presentation, April 2024
Slide 1: FY23 Financial Results
FY23 Financial Results April 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: Company Overview
Company Overview Dublin Who we are Corporate Office Manchester • World Leader in Human Screening Site Mission Challenge Trials Delivering today’s healthcare by Ely • Onsite Virology Laboratories Biobank empowering tomorrow’s innovation. • FluCamp: tech-enabled volunteer and patient recruitment platf
Slide 4: Building a Long-Term Sustainable Growth Model
Building a Long-Term Sustainable Growth Model Revenue EBITDA EBITDA Margin £56.0m £13.0m 23.3% 2022: £48.5m 2022: £9.1m 2022: 18.7% 2021 2022 2023 2021 2023 2022 2022 2023 2021 £39.0m 2021: £36.9m £39.0m 2021: £2.9m £39.0m 2021: 7.8% Cash Weighted Orderbook Adjusted Basic EPS £37.0m £80m 1.27p 2022:
Slide 5: Financial performance review
Stephen Pinkerton Chief Financial Officer Financial performance review
Slide 6: Another Record Year
Another Record Year Revenue EBITDA Revenue CAGR of 23% EBITDA CAGR of 113% £56.0m £13.0m EBITDA EBITDA Margin £48.5m 23.3% £9.1m £36.9m 18.7% £2.9m 7.8% 2021 2022 2023 2021 2022 2023 • Revenue increases 16% year-on-year • Strong performance from the operational delivery team • Venn consulting revenu
Slide 7: Strong Cash Generation
Strong Cash Generation Cash £37.0m • Strong cash position with £37.0m as at 31 £28.4m Dec 2023 • Includes £3.1m dividend paid in 2023 • Debt free • Advanced fees from orderbook growth & £15.7m contract delivery milestones • Facility fee receipts in advance of spend • Increasing underlying operating
Slide 8: A Sustainably Cash Generative Business
A Sustainably Cash Generative Business • Significant cash generated from operations - up 46% vs 2022 • Fixed asset expenditure - driven by new facilities and normal • Growing business & advance fees – resulting in positive working replacement of clinic / laboratory equipment capital movement 8
Slide 9: Case Study - £6m Contract Revenue Recognition Profile
Case Study - £6m Contract Revenue Recognition Profile £6m Stage 1: Stage 2: Stage 3: Stage 4: Pre-study preparation FluCamp Quarantine Phase Study completion activities Revenue Recognition Reservation fee recruitment £5m £4m • Upfront, non-refundable booking of c.10-20% of total study value to reser
Slide 10: Annual Dividend Policy
Annual Dividend Policy c.£1.4 million | 0.20 pence per Ordinary Share 9 April Final Results 18 April Ex-dividend date Reflecting sustainable cash generation in addition to our 19 April Record date robust balance sheet 20 May Payment date 10
Slide 11: A year of record growth
Dr. Yamin “Mo” Khan Chief Executive Officer A year of record growth
Slide 12: Utility of Human Challenge Trials
Utility of Human Challenge Trials Commercial Regulators • Pfizer RSV vaccine approval • FDA Fast Track Designation • ReViral acquired • FDA Breakthrough Designation • Cidara asset acquired • Strong support from UK regulators • Multiple positive readouts Validation of the Power of Human Challenge Tri
Slide 13: Building a Long-Term Sustainable Growth Model
Building a Long-Term Sustainable Growth Model 2023 Operational Highlights Challenge Trials in Active Challenge Quarantine Models • New and repeat customers contracted 9 6 • Record inoculations 2022: 7 2022: 4 • 4 new models under development 2021 2022 2023 2021 2022 2023 £39.0m 2021: 7 £39.0m 2021:
Slide 14: Case Study: End-to-End Human Challenge Service
Case Study: End-to-End Human Challenge Service Repeat Big Pharma client goal: generate rapid data Q1 2023 Q4 2023 H1 2024 H1 2024 H2 2024 Inbound Enquiry Contract Signed Virus Manufacture Confirmatory Study Human Challenge Trial New Models Human Respiratory Influenza H1N1 Influenza B Metapneumovirus
Slide 15: FluCamp – A Leading Recruitment Platform
FluCamp – A Leading Recruitment Platform FluCamp Volunteer Profile Lead Generation 50000 Age Gender 40000 18-27 Female 30000 28-37 Male 20000 38-47 Non-binary 10000 48-57 >58 Other 0 Volunteers who complete a trial would more UNIQUE website visits 2023 versus 97% recommend FluCamp to others1 >50% ou
Slide 16: Venn – Growing with our Clients
Venn – Growing with our Clients Seamless drug development support service (“Bench-to-Bed”) New office at Leiden Bio Science Park Driving collaboration & interaction with 24% potential customers from the largest life science community in Benelux >30% revenue growth driven by Increase in Venn employee
Slide 17: Building momentum into 2024
Avivo formerly Open Orphan plc Building momentum into 2024
Slide 18: Record Contracted Orderbook
Record Contracted Orderbook Net Contracted Orderbook Gross Orderbook Providing Record Visibility £80m £76m £46m Dec-21 Dec-22 Dec 23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 • Strong sales performance in 2023 • 90% of 2024 revenue covered by existing orderbook • Growing orderbook after record
Slide 19: Diverse Contracted Orderbook
Diverse Contracted Orderbook Customer Project Challenge Agent Client K Other Others Project 1 hMPV Client J SARS Client I H1N1 Client A Client H HRV Project 11 RSV Client G Project 2 Project 10 Client F Project 9 Other Project 8 Venn Client B Client E Consulting Project 7 H3N2 Client D Project 4 Flu
Slide 20: Diverse Orderbook - Driving Efficiencies
Diverse Orderbook - Driving Efficiencies #Inoculations by Challenge Model 2024 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 • Goal: utilise 3 different virus agents per month • Increases efficiency • Multi-agent screening of volunteers • Improved resource and s
Slide 21: World's Largest Commercial Human Challenge Trial Unit
World’s Largest Commercial Human Challenge Trial Unit The Leading Volunteer Experience 50 Bedroom • Views of Canary Wharf from Level 25 Quarantine • State-of-the-art facility Unit Open! • Individual room temperature control • In house kitchen with new food menu • Upgraded entertainment options Posit
Slide 22: State-of-the-Art Facility
State-of-the-Art Facility CL-3 • Significantly increased sample throughput Phase 2 on Virology & Track to Immunology • Expanding capability to work with a Complete in Labs broader range of pathogens Q2 2024 Outpatient Unit • Facilitating Phase II and III field trials Corporate Office • Improving com
Slide 23: Improving Automation – Driving Efficiency
Improving Automation – Driving Efficiency Shifting from paper-based processes to a fully integrated digital system Lab Information Management System (LIMS) • Streamlined lab processes • Enhanced interrogation readiness • Integrated lab operation • Improved efficiency Volunteer Management System • En
Slide 24: A Growing Market
A Growing Market Phase I / Phase II Trials Increase in academic and non- 100 profit funding in 90 80 70 Growing Healthcare Funding: 60 $13Bn Q1 2024 50 40 $5Bn Q1 2023 30 20 10 Growing number of academic 0 and 'commercial' human 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 challenge u
Slide 25: Growth Drivers to £100m by 2028
Growth Drivers to £100m by 2028 Expansion of Infectious New Services Disease Market • Increase in Phase I / II trials • Phase II / III site services • M&A activity • Patient recruitment • Non-profit funding • Larger lab & expanded services • Climate change • Expansion of Venn consulting How will we
Slide 26: Financial Outlook into 2024
Financial Outlook into 2024 £62.0m £56.0m £48.5m • Full year revenue guidance of £62m, H1 weighted 23.3% £36.9m • Sustainable EBITDA margins 18.7% • 90% of 2024 revenue contracted • Good visibility into 2025 • Supported by weighted orderbook of £80m 7.8% 2021 2022 2023 2024F (29.5%) Revenue EBITDA M
Slide 27: Investment Case
Investment Case Continued Delivery Scaling & Driving Efficiencies Well Positioned for Future Growth • Strong revenue, EBITDA, and sales • New 50-bedroom facility • Guiding £62m revenue 2024 & sustainable • Increased lab capacity EBITDA margins • Robust cash position • £80m weighted contracted orderb
Slide 28: Appendix
Avivo formerly Open Orphan plc Appendix
Slide 29: 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 30: 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 31: World Leading Human Challenge Model Offering
World Leading Human Challenge Model Offering Influenza RSV HRV Malaria Asthma SARS-CoV-2 hMPV Dengue H3N2 Perth Memphis HRV 16 P. falciparum HRV 16 Pre-Alpha Strain A* Dengue 1* H3N2 HRV 14* Delta Dengue 3* Wisconsin Virus Strain H1N1(F) Omicron* Dengue 4* Flu B* H5N1* * In development Potential for
Slide 32: Benefits of Human Challenge Trials
Benefits of Human Challenge Trials CLINICAL SCIENTIFIC REGULATORY FINANCIAL DEVELOPMENT Generates invaluable Potential for Fast Significant valuation Requires fewer dosing, safety and Track or Breakthrough uplift for Biotech subjects efficacy data designation - sponsor accelerating time to market Qu
Slide 33: Significant Barriers to Entry
Significant Barriers to Entry USP CUSTOMERS RECRUITMENT FACILITY • Precedent EXPERTISE • Established • Challenge data relations EXPERIENCE • 43-bed • Flucamp • Sample PRODUCTS quarantine • Sole provide to • Generic calculations • Scientific Team big pharma • Virology/ Screening • Laboratory staff Im
Slide 34: Environmental, Social, Governance
Environmental, Social, Governance hVIVO ESG Group established in 2023 for Canary Wharf ESG initiating, progressing, and monitoring our ESG objectives Canary Wharf have a strong focus on ESG and will help us to reach our goals for improving and enhancing or corporate social responsibility hVIVO’s ESG
Slide 35: Facilities Overview
Facilities Overview QMB Clinic QMB Laboratories 35
Slide 36: Facilities Overview
Facilities Overview Canary Wharf Quarantine Unit Plumbers’ Row Corporate Office & Screening Facility Opening Manchester Screening Centre Biobank 2024 36
Slide 37: Stay in touch
Avivo formerly Open Orphan Stay in touch 0O6eo0 Ticker: HVO