Hvivo Plc · LSE:HVO
Hvivo — H1 2023 Earnings Presentation
37 slides from Hvivo's earnings presentation, September 2023
Slide 1: H1 23 Presentation
H1 23 Presentation September 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: Presenters
Presenters Dr. Yamin ‘Mo’ Khan Stephen Pinkerton CEO CFO 3
Slide 4: Who we are
Who we are Mission Vision Values Delivering today’s To transform global healthcare Innovation & Agility healthcare by empowering by revolutionising the drug Growth tomorrow’s innovation. development process through Integrity & Welfare scientific ingenuity. One Team
Slide 5: Strong H1 Performance & Full Year Upgrade
Strong H1 Performance & Full Year Upgrade Delivering Record H1 £27.3M 19.1% £31.3m Revenue1 EBITDA Margin Cash Balance Financial Performance H1 2022: £18.0m H1 2022: 12.6% at 30 June 2023 Exceptional 70 74k+ 4,000 FluCamp Leads Operational Execution Human challenge trials Volunteers inoculated Gener
Slide 6: Stephen Pinkerton, Chief Financial Officer
Stephen Pinkerton Chief Financial Officer Strong financial performance
Slide 7: 52% Increase in Year-on-Year Revenue
52% Increase in Year-on-Year Revenue Revenue 1 £27.3m • H1 revenue 52% increase on H1 2022 • Key Drivers include: £21.9m • Strong order book • Multiple studies being conducted concurrently • Increase in study size £18.0m • Full service contracts with manufacturing & characterisation • Venn Life Scie
Slide 8: EBITDA Margins Continue to Increase
EBITDA Margins Continue to Increase EBITDA EBITDA Margin £5.2m 19.1% 12.7% £2.1m £2.3m 9.4% 6% H1-2021 H1-2022 H1-2023 H1-2021 H1-2022 H1-2023 • H1 EBITDA of £5.2m, representing a 129% increase in • Margin growth is underpinned by better quarantine and EBITDA from H1 2022 staff utilisation rates • H
Slide 9: Strong Cash Generation Across H1 2023
Strong Cash Generation Across H1 2023 Cash Cash increase of 110% • Strong cash position with £31.3m as at 30 June 2023 £31.3m • This is net of a £3m special dividend paid to shareholders on 9 June 2023 • The Company remains debt-free with robust net working capital • Contracts structured to remain c
Slide 10: Record Net Contracted Orderbook Continues to Grow
Record Net Contracted Orderbook Continues to Grow Net Contracted Orderbook Contracted Orderbook Weighting by Client Type Orderbook Growth > 3x £76m £78m £70m 41% Biotech £46m 59% Big Pharma £25m Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 • Orderbook continues to grow after record revenue • APAC Biotech chal
Slide 11: Yamin "Mo" Khan, Chief Executive Officer
Yamin “Mo” Khan Chief Executive Officer A long-term sustainable growth model
Slide 12: Operational Highlights
Operational Highlights FluCamp leads generated 5 studies in Quarantine 74,000 80% rated 4-stars+ on Trustpilot 4 challenge models active 100%+ Y-o-Y increase in inoculations Leiden Office opened Manufacturing in process for 4 models Canary Wharf facility signed 1st volunteer re-purposing contract Su
Slide 13: Increasing Demand for Human Challenge Trials (HCTs)
Increasing Demand for Human Challenge Trials (HCTs) Increasing Number of Active HCTs Increasing Number of Volunteer Inoculations per HCT per year 44% CAGR 13% CAGR 2020 2021 2022 2023F 2020 2021 2022 2023F • Higher number of HCTs: • Larger sample size (#volunteers/trial) - Increased demand for HCTs
Slide 14: Unique End-to-End Human Challenge Service
Unique End-to-End Human Challenge Service Swab collection Isolate virus Conduct characterisation Model Developed: from community & produce GMP study to determine Conduct Human acquired disease grade virus batch best dose of virus Challenge Trial (HCT) Typical challenge Further diversifying hVIVO’s l
Slide 15: Profile of a Challenge Trial
Profile of a Challenge Trial Biotech goal: use data to raise funding & de-risk late-stage field trials 7,695 Lab samples processed 11 Quarantine Days per volunteer 1 Out-patient follow-up visit after 1 month 21,698 The Result • Rapid positive efficacy data • Support fundraising activities • Endpoint
Slide 16: 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 17: New Models
New Models Influenza B: Increases capabilities to Type B Influenza hMPV: Increasing interest by global biopharma Influenza B has significantly increased in 2023 Flu season in Australia (1) 4-18% Of people with lower respiratory tract infections have hMPV (3) Generally lower incidence than Influenza
Slide 18: Diverse and Growing Sales Pipeline
Diverse and Growing Sales Pipeline Pipeline Distribution Pipeline Distribution Pipeline Distribution by Region by Client Type by Model Influenza (multiple strains) RSV US & Canada EMEA Biotech Pharma HRV COVID-19 APAC MENA Medtech Other Malaria Asthma&COPD hMPV Other 1% 2% 4% 2% 5% 4% 3% 4% 26% 38%
Slide 19: New Services Drives Margin Growth
New Services Drives Margin Growth Volunteer repurposing Expanded Lab Services • 1st contract signed • Standalone lab services • Ineligible HCT volunteers • CAP Accredited • >85% of FluCamp volunteers • Additional space Consulting Services Phase II / III Site Services • Clinical development • Single
Slide 20: Venn - Continuing to Grow and Expand
Venn - Continuing to Grow and Expand Seamless drug development support service (“Bench-to-Bed”) New office at Leiden Bio Science Park 18% Driving collaboration & interaction with potential customers from the largest life science community in Benelux 20%+ year-on-year revenue growth Increase in Venn
Slide 21: A Growing Market
A Growing Market Companies Developing Vaccines/Antivirals Over Time 484 383 • Increasing number of vaccines and antivirals in development 310 • Need for new and improved vaccines & treatments 230 146 • Increased awareness of the value of HCTs 111 66 • Tighter funding environment increases HCT need 1
Slide 22: New Facility – Canary Wharf
New Facility – Canary Wharf WHY NOW? FINANCIAL IMPACT • Customer demand & orderbook • Nominal cost to the Company • Lack of space – beds & lab • Similar lease costs over 10 yrs • Availability of right facility, right price • Reduced cost / bed • Customer funding • Potential to improve margins • Curr
Slide 23: New State-of-the-Art Facility to Meet Growing Demand
New State-of-the-Art Facility to Meet Growing Demand 50 quarantine bedrooms with Larger virology and 210 Lockers potential to increase to 70 immunology lab L25 Outpatient Unit & Quarantine Facility L25 Outpatient Unit & Quarantine Facility Smart Access to Enter & Exit Building L24 Lab Complex & Corp
Slide 24: Guidance Upgrade
Guidance Upgrade Upgrading Revenue1 & EBITDA for 2023 60 25.00% £55.0m Full Year Outlook 50 £48.5m c.19% 20.00% • Upgrading full year revenue guidance to £55m 40 £36.9m 17.9% for 2023 15.00% • Upgraded 2023 revenue guidance is fully 30 contracted £20.6m 10.00% • Upgrading 2023 EBITDA margin to c.19%
Slide 25: Investment Case
Investment Case Excellent Performance Growing Revenue Streams Record Visibility • Strong revenue, EBITDA, and sales • New 50-bedroom facility • Guiding £55m revenue 2023 • Robust cash position • Increased lab capacity • c. 19% EBITDA margin 2023 • Improving operational efficiencies • Increase outpat
Slide 26: Questions
Avivo formerly Open Orphan ple Questions
Slide 27: Appendix
Avivo formerly Open Orphan Appendix
Slide 28: 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 29: 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 30: FluCamp Recruitment Platform
FluCamp Recruitment Platform Volunteer recruitment is the #1 challenge for all CROs Growing Brand Recognition 230,000+ 100% Improvements Volunteers in Trial Recruitment Driving increased Database Success throughput and efficiency 940,000 225,000 74,000 FluCamp.com visits Calls made Leads generated H
Slide 31: Significant Barriers to Entry
Significant Barriers to Entry 1. World leading challenge model portfolio 4. Strong client base • The broadest range of challenge agents on the market • Diverse customers across the biopharma sector • Continuing to expand our offering based on market • Preferred partner for 4 of the top 10 global bio
Slide 32: Level 25 - Quarantine
Level 25 - Quarantine 32 Staff Space Outpatient Unit Quarantine Beds
Slide 33: Level 24 - Labs & Corporate Office
Level 24 - Labs & Corporate Office 33 Staff Space Meeting Rooms & Offices Laboratories
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 Whitechapel Clinic and Screening Centre Plumbers’ Row Corporate Office & Screening Facility Manchester Screening Centre Biobank 36
Slide 37: Stay in touch
Avivo formerly Open Orphan ple Stay in touch Ticker: HVO