Hvivo (LSE:HVO) — Interim Results

0:02 Good evening, ladies and gentlemen, and welcome to the HVIVO PLC Interim Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the Q and A tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and we'll publish our responses where it's appropriate to do so on the Investor Meet company platform. Before we begin, as usual, we would just like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to the executive management team from HVIVO PLC. Mo, good evening, sir. Good evening. Thank you for that, and good evening, everyone. Thank you for taking the time out of your busy lives to get updated on the HVIVO's first half performance of 2025. I'm Yamin Mohan. I'm the CEO of the company. I've been here just over three and a half years, and with me here is Steven.

1:02 I've been with the company coming up to nine years now, and I was made CFO in October 2022. Good. Good. Thank you. Okay. So this is the the trading update or the interims update from the first half of twenty twenty five. To be honest, with regards to the financials, there hasn't been significant changes since we last provided trading update in July. Is the obligatory disclaimer for the public listed companies that we are on our name. For those of you who may be new to the story, I'll give you a brief description of background of who we are and what we do. And in fact, we have changed, some of our service provisions in 2025 through acquisition of a company called CRS in Germany with two clinical trial units, one in Mannheim, one in Kiel. CRS is a a contract research organization, a CRO that performs phase one first in human clinical trials as well as phase two proof of concept trials.

1:59 In addition, we acquired a second company in Greenwich, in London, called Crystore provide biobank services biobank services. So they basically start for long term storage for clinical and biological samples. HVIVO, as a whole now provides early phase clinical development services to, different biotechs and pharmaceutical companies. We remain the world leader in human challenge trials, which is a specialized, type of clinical trial, whereby we inoculate or expose healthy volunteers to a pathogen, and then we, study different, vaccines or antivirals, during those trials. In addition, we have a a second subsidiary called Ben Life Sciences, with offices in Breda, in The Netherlands, Leiden, and also in, Paris in France.

2:50 And you can see, the combination and experience of the three, groups is is extensive to over a year a hundred years of experience. We also have a a very large, trial participant, database, and we have now greater breadth in the service that we're offering as well as the therapeutic areas we are servicing. And to that point here, you can see on the at the bottom, if I start there, the the scope of the work we do right now is more varied than ever before. So if you're looking at the clinical development process starting from preclinical, even to the extent of being in the laboratory to getting the product, authorized, getting a marketing authorization from the regulatory authorities, we can now actually, have different contact points with the clients depending on the different stages through their development process and provide relevant services. So this basically means it is expand and widens our, potential client base.

3:53 In addition, we are now offering, services more than just infectious disease and respiratory. So historically, you may know HVIVO focus on infectious diseases and respiratory diseases, especially pathogen driven diseases. We can now offer metabolic, disease trials as as well as renal hepatic impairment and also immunology or inflammation and dermatology therapeutic areas. And going forward, as we look to complete the integration of Cryo Show and CRS, together towards the end of this year, future, we will be reporting through different service lines rather than by business units. So for example, human challenge trials, when we conduct that trial here at HVIVO, we, at HVO in London, recruit the patients.

4:40 We treat the patients. We check the data. Then our Venn colleagues in in Paris, they they provide services in the essence of data management and also in biostatistics. And then our Venn colleagues in The Netherlands provide the medical writing, contribution. So all in all, different companies within the group work together to deliver a single project. And we felt that it's it's best as we move forward and align these companies across service lines to report along those service lines. So the second service is clinical services. So these are all nonchallenged trials we're running at HVO group in including CRS, for example. So these these would include phase one trials, phase two proof of concept trial, as well as clinical site trials we perform at both CRS and in in London.

5:30 The third arm to our kind of new service line is HLab or laboratory services, and this now includes the addition of CryoStor and the expansion of our Biobank capabilities. And finally, of course, there's the consulting services that are driven mainly through the Ben office in Breda and Leiden, which effectively gives us access to clients across a a broader, range on the clinical development pathway. I'm just gonna give you a brief highlights of the, numbers from the first half of this year. I'll ask Steven in a while to give you a little bit more granular detail on some of those numbers. So as reported in July, we, recognized around 24,000,000 in revenue. We generated, £3,000,000 of, EBITDA. The cash position as healthy, 23,000,000 for us. But the key, message for today, really, is that we are on track to deliver the £47,000,000 in revenue that we, guided, in May of this year. In addition, as part of this interim update, we are providing guidance, in for '26 and '27.

6:39 So we expect to return to growth in 2026, offering high single digit growth and also, breaking even with regards to EBITDA. Some of the operational highlights of this year were one of the key milestone for us as a company was to go through our first major acquisitions through CRS and then also acquire store. And as I said, both of those service lines are performing really well. So I we believe that the acquisitions that we accomplished earlier this year were very timely, are helping us in in the current challenging times that are impacting our human challenge trial franchise. Post period, we have had some good wins, which are listed there. We have also added a new challenge model in human metanemia virus or HNPV, this being, the world's first, HNPV challenge model, of its kind.

7:30 And finally, we also appointed a new chair, in Sean Chilton. Sean has expertise, all relevant to us. When we put together the requirement list of what we were looking for in a new chair, Sean ticked all the boxes. So he has CEO leadership experience at a service provider for pharmaceutical industry. He's got depth experience in, being a member of a board, and he also has a market experience and knows many of the analysts and investors himself. So it's really great to start working with him as a September 1 this year. I will now pass on to Steven who will provide more details on the financials. Good evening, everyone. Now I'll take you through the key, metrics and provide provide a refresher because, actually, they haven't really changed significantly since we, gave a training update in July.

8:23 So first up is revenue. We delivered 24,200,000, of which 5,500,000 was delivered by the acquisitions. So if you take that out, you're left with about 19,000,000, and that 19,000,000 compares to the 35,600,000, we delivered last year. Yes. So human challenge trials have suffered significantly this year with the macro, challenges that we economic chain challenges we have faced. So as well as, consultancy fees have also dropped ever so slightly. We lost one client, but the interesting thing was that that client had been with us for about fifteen years. So it's I have pointed out that consultancy revenue is generally very sticky, and it is and that may come back because there are some discussions with the client at the moment.

9:11 So the positives really, though, are the you know, we we did set out a strategy to diversify our revenue streams and our services, and you can see almost a third of our revenue, 7,900,000, is coming from HLAB and clinical services. HLAB services are obviously organic, mostly organic, or it is all mostly organic, but it's benefiting from the new facilities and the new space that we have in Canary Wharf. The clinical services certainly benefiting from having acquired CRS. Just to remind, we reiterate our guidance for the year of 47,000,000 for 2025. EBITDA, this is before pre exceptional items of 1,400,000.

9:59 EBITDA was 3,000,000, and this is after net losses from our acquisitions of 500,000. So the underlying performance for the core business was a profit of 3,500,000. So and that's not a bad result considering the decline in revenue. So we really benefited from operational efficiencies achieved with the new facilities as well as tight cost management control, and this is evidenced by the the year on year headcount reduction of 25%, versus, h one twenty twenty four. And this is a large part of that is due to the the the we use, we have we use a significant amount of, temporary staff, and, obviously, we've cut that back in line with the volume of work that has to be delivered. But we've also delivered efficiencies and, you know, the the permanent head count is reduced by 15%.

10:54 The other factor that's also driving that performance is cancellation fees. We did have an abnormally high level cancellation fees in the second half of the year, which is what led us to this rerating on our trade on our revenue down to 47,000,000 and in May. And so those the benefit of those in in this in this situation is that we do not incur any variable spend so that more of that revenue flows through to the bottom line. So EBITDA for the the rest of the year for the full year is expected to be low single digits low single digit loss. Cash, 23,300,000 is definitely a healthy cash balance certainly in the in the environment that we are working in. We do not have any debt either.

11:45 So the reduction is down to two things, Ray. It is down to the acquisitions. We've spent almost 14,000,000 on supporting the acquisitions, acquiring the acquisitions, and also supporting their, a a loss, which we expected, and working capital, negative working capital, which we've expected. The other, a third is also a of the reduction in head in cash is due to the is due to the human challenge trials and the lower volume inherent human challenge trials being contracted in the year. So the one thing we've been we wanted to just give you some sense of where we're gonna expect in cash. This is a for the full year at the end of the year, and this is rather difficult to really project because human channel trials are quite have a significant influence on where you'll land at the end of the year, and we are guiding that cash balance will be declined further in h two twenty twenty five.

12:43 There are a couple of reasons for that. One, you know, human challenge trials they have if they sign in time before the before mid November, we stand a good chance of collecting that cash and that would be better. But it's quite likely our conservative projections that the cash will be delivered in 2026 rather than in the current year relating to new human child health contracts. The other impact on causing cash to decline further is that we do have a high level of clinical trial activity happening in November and December, and we don't expect to get receive that cash until January 2026. And it's very much what we faced this year in the beginning of twenty twenty five because at the end of December twenty twenty four, there was a large debtor's balance and had a lot of questions on that, but the cash had came through in January. And this is because you're working through a large CRO.

13:42 They, you know, they like to true up the the payments for the visits for the volunteer visits to the EDS system. So it can take a bit of time, and then they pay forty five days because this is for the big CRO. Other than that, we do have sufficient cash though, to continue to invest and grow this business for the foreseeable future. And when human challenge trials come back and and come back to a sort of to normal activity levels will be hugely cash generative again as we have been in the past. This slide just trying to highlights the cash split between, what the core business was responsible for in cash terms, and you can see the core business utilized 7 millions of £7,000,000 within cash and really down to a negative working capital, which is the unwinding of deferred revenue.

14:36 And you look at the acquisitions, acquisitions, we we spent 10,500,000 acquiring the businesses, and then we've also spent 1,100,000 in operate generate in cash op in cash generated operations, a negative value, but also the working capital, they needed support on the working capital. And part of the reason for that is that, CRS is, a lot of the contracts that we inherited with CRS, their payments and their payment milestones were back ended towards the end of the study rather than sort of operating throughout the study. So that's why that working capital is minus 2.2, and we expect that for the rest of the year to to grow a little bit to up to about 4,000,000. So that's why, again, another reason why we are expecting cash to be lower at the end of at the end of the year.

15:30 And with that, I'm gonna hand back to Moe. Into '26 and even twenty even twenty seven. We are facing headwinds, and there's no getting away from that the 2025 year has been challenging for HVIVO, especially with regards to human challenge trials. We've had cancellations. We've had postponements, and we've had lengthening in the life cycle of the of the sales process, getting our customers from proposal to contact signatures. I think that's it's a fairly well known factors that we have communicated to our investors before. And those headwinds are are currently still playing a significant role that are only impacting us, but also impacting the the the broader CRO sector. So on the one hand, there is depression in biotech funding, that's seen by the industry. But on the other hand, there's also pressure on vaccines, because of the changes in in the regulatory guidelines coming out of The United States especially.

16:39 And considering they are the the major market for vaccines, it does have a impact globally because our customers are now looking to reassess the placing of future funds and deciding which other assets or drug to take forward from their pipeline. And if you have uncertainty or volatility on future revenue projections, those decisions, take longer and you invest in fewer assets in the pipeline to take forward. And that is one of the reasons why we've seen this dip in, human challenge trials. In addition, there've been changes in in the vaccine policy. So even last week, those changes in the way the immunization schedules for, COVID, for MMR vaccines, will be working going forward in in The US. And and that's something we, we hope we'll we'll rectify. And as things will settle and and the industry get used to these new, parameters, we should expect to see a a pickup in in in the development of these drugs because the these drugs are currently in early stages of development.

17:52 Some of this company do have funding, and they're just waiting for some stability, and, you know, more improved projection as they go go forward before deciding on whether to run a phase one or a phase two or a human challenge trial going forward. Having said all of that, we have a number of opportunities that The UK is trying its utmost to promote more clinical research in The UK. So there have been some regulatory improvements. So the start up timelines for running setting up clinical trials in The UK has improved. So that that should help attract more clinical trials. In addition, The UK is setting up some, very large super sites or clinical research centers, where they're intending to recruit a lot of patients into future clinical trials. And that, again, should make, The UK an attractive location for future clinical trials. Admittedly, there has been some negative press with regards to some of the decision being made by the big pharma Merck, AstraZeneca, Sanofi, and so on with regards to putting putting in future infrastructure structure into UK.

19:03 But with regards to clinical trials, the issue not be impacted by those kind of decision because running a clinical trial in The UK doesn't necessitate that that you, should, market that drug in that country. So the key goal for running clinical trials is really to do it as fast as possible, and you go to the countries that have fast regulatory start up timelines and have high patient recruitment rates. One thing I do want to highlight is that the pricing pressure we've seen for medicines is something that will stay with us for a while. So this includes The UK, for example, where the UK government is currently negotiating with the pharmaceutical industry. In The US, there's a most favored nation initiative whereby The US who, admittedly, pay very high prices for medicines are negotiating lower prices with with the pharmaceutical industry.

19:58 And we believe that one way to reduce prices for medicine is to shorten the development process. So if clinical trials, and the whole development process can be shorter and cheaper, the medicine would be available to patients faster and effectively cheaper. And human challenge trials is one alternative way of developing drugs that is definitely cheaper and faster. So as as a comparison, the amount of, patients required to do a challenge trial, is less than 10%, against a a typical classical, phase two trial, and it it will take less than half the time. So we believe that the human child trial can play a pivotal role in the future of, clinical development, especially with these ongoing pricing pressures that we're seeing globally.

20:51 With regards to the integration, I think I I mentioned this before. So we basically divided up this whole process into three, sections, people, processes, and systems. I'm pleased to say that we have realigned our people into global departments. We've updated job descriptions, and the departments are working are functioning really well. With regards to processes, again, we've updated the processes to be aligned globally, and that that's they're they're all in place. The third passage, is the systems, is well underway. Of course, this always takes a little bit longer than the other two, by something we have projected and we anticipate that by the end of this year, we will have completed the integration task. We have already realized significant savings from, the integration, and we've also, recognized cross selling opportunities and cross selling contracts that the CRS and then and HVIVO have been collaborating together on. And this is one of the key reason why we did acquire CRS, and we we believe, especially looking at the current situations with human challenge trials that our decision to acquire CRS and acquire so it's vindicated by the fact that these groups are now contributing significant revenue to the to the group's total.

22:11 So one of the areas we will be focusing on, especially within CRS, is in obesity. So as you may have heard, obesity right now is a a very big market when it comes to clinical trials and also for the drugs currently in the market. But this is just the beginning. So you can see in the in the middle bar chart there, the number of clinical trials in obesity has increased year on year. In fact, right now, in this year, there are more phase one and phase two trials being conducted for obesity candidates than ever before. And this isn't just the the, g l one p, GeoClips, though that currently in the market, but companies are now looking for additional mechanism of action, new classes of drug that they can take forward and actually conduct phase one, phase two, and phase three trials and get those to market.

23:01 We have our chief medical officer, Thomas Fost, at CRS based in Manheim who's a who's a trained endocrinologist, is a key opinion leader. We've also equipped our Manheim facility to cater for these type of trials, and we will be making a big push in promoting CRS and HVIVO as a group to conduct more first in human clinical trials as well as phase two and phase three clinical trials in obesity. We talked about our HLAB services a a little earlier. Now HLAB, has always been there. So in fact, the the section of the existed before even HVIVO was known because in 1989 when Retroscreen was founded, it was mainly a virology lab service provider. And I'm pleased to say that we've used the experience and that expertise and even those resources to to now, sell lab services as a as a stand alone, service line. And we have already seen success in that we are now running phase three studies, for for the bar fee only services, that we we have never done before. And with an increased number of queries coming in, we've hired a new head of lab in Chris, and he's coming together with a new BD person, Maria, and they're promoting and and pushing for additional standalone services for our lab. Now remember, our a lab will continue to support the human child's trial we run. But in the meantime, they're still able to generate additional revenue by providing these standalone,

24:32 lab, projects for our clients. So our weighted order book at the end of June was at the £14,000,000, which is a healthy order book. Of course, there's significant room for improvement. But one of the key successes we've seen is the diversification of the order book. Whereas, historically, we mainly relied on human channel trials. We now have a greater diversification in including the party opportunities, phase one, phase two, field studies, all forming part of this growing order book. In addition, the the proposals that we have seen this year has far exceeded what we saw in 2024. Remember, getting proposals in is is the first step in getting contracts and generating revenue to generating good EBITDA. So that this is one of reasons we are optimistic of future growth because we've seen increase in the interest, especially in the nonhuman challenge trial portion of the work.

25:39 This is our final slide for today. So the outlook, it's, we we are reiterating the guidance we provided, in the second half of this year. We will be achieving £47,000,000 of revenue, with a low single digit EBITDA, which is an improvement, of what we said, in May. I think we said mid to high, single digit then. The key for us is that we continue to diversify, continue to grow our nonhuman challenge trial pipeline and portfolio of services as well as working on the two key large human challenge trial opportunities that are in our pipeline. One of our areas for future growth is to continue to work across the different business units, so including in CRS, VEN, and HVIVO to run larger multi site projects.

26:29 I'm confident that come 2026, we will return to growth, and hopefully, a breakeven. We we do want the human challenge trials, to come back, and the the strength of the proposals we have seen is evidence of that. And And in in 2027, we expect to return to profitability and be more cash guaranteed. Thank you for your time today. Perfect, Moe. Stephen, if I may just jump back in there. Thank you very much indeed for your presentation this evening. Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab that's situated on the right hand corner of your screen. But just while the team take a few moments to review those questions that have been submitted already, just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A can all be accessed via your investor dashboards.

27:14 Most even as you can see there, we have received a number of questions throughout your presentation. And thank you to all of those on the call for taking the time to submit their questions. But guys, this point, if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so. And if I pick up from you at the end, that'd be great. Thank you. Thank you. Okay. So I'll I'll try to go through as many questions, as we can within the time allotted. So how many new contracts over 5,000,000 have HVIVO won this calendar year? So, obviously, I can't give you any information that's not in the public domain already. We have, if I did before that we will announce significant contract that do have an impact on on revenue or other financials. And that also applies, to cancellations, as, we announced early this year. And as and when we we sign these contracts and they have a positive impact on the revenue or profitability, we will, of course, announce them to all our investors and the market.

28:15 Maybe, Steven, you can answer this one. Has the whooping cough stage three contract been defunded, or is it still in the pipeline? It's still very much in the pipeline, and we've been working closely with the client in setting up our bacterial lab. So we have now set up the bacterial lab. They've paid for that setup of it. We're just about to sign a small deal with them to complete their protocol and get ready for that. But it's very much dependent on them completing their funding program. You know, Moe speaks to the CEO on a regular basis or on a monthly basis, see how that is going. All things told, they say they will they they're on track to delivering it, but, obviously, a contract needs to be signed.

29:05 So we're we're we are mildly optimistic that this will come through at some point because, effectively, this whooping cough study is the old one in place. The old vaccine in places is nearing its tenure and its life, and there's no other, replacement, three replacement available in the market. So we also think that there's a good marketplace for this vaccine to be funded and and and to progress forward. So there are some good positives that this could happen. Thank you. What specifics are you doing to reverse the shocking level of share price decline?

29:51 So I think the the key goal for us really is to get back to increasing our revenue and generating EBITDA and and and profits and cash. They're they're the real drivers for us as we move forward. And you can see some of the initiatives we have pointed out already. So the the diversification, addition of new service line is is is a key driver to all of that. This just it's not just only diversifying and adding more services, but also covering new therapeutic areas. We we also have to manage, the changes the rapid changes in the regulation with regards to vaccines on an ongoing basis. But we also have excellent relationship with the most of the, vaccine manufacturers, across the world, and we are working with them very closely to highlight the benefits of human child for us. And we are, in fact, trying to, lobby some regulatory authorities, to persuade them to utilize human challenge trials, especially with regards to the current pricing pressures, we are seeing and I mentioned earlier in the presentation.

30:59 Will the share price ever go up? Oh, I definitely hope so. I do believe the share price will go up once we start signing some contract, once we get increase in the diversified service revenue that we we are beginning to see already, and the the proposals do support that. Why are we only hearing about these headwinds recently? Because that we've only been impacted by them recently. So most of these headwinds that we are seeing have really come into fruition this year. And things change very fast, very rapidly, and and especially driven by by The United States. The The only kind of headwind that has been, I guess, in existing for a bit longer is the depression in the biotech funding, and I have mentioned that previously.

31:49 Are you still on track for £100,000,000 revenue in 2028? So we are still on track for a £100,000,000 in revenue. Although we are stopped putting a timeline on that, mainly driven by the volatility in the human challenge trial business and and and generally in in vaccine production and vaccine development. The company as it stand currently can cater for and and drive £100,000,000 worth of revenue of work without any significant CapEx spend. So we have the capabilities, the facilities, the the resources, the equipment, to generate, £100,000,000 of revenue, if we had, the order book in place. So the key driver for us really is to drive new sales, whether it is in human challenge trials and pushing our clients to make decision faster or promoting our newly diversified services.

32:48 Notwithstanding the difficult US environment for this this is a very long question. I noticed that. When would you expect revenues and margin to get back towards the previous levels with EPS up towards to so I think the major driver for those really is the human challenge trial business. So I wanna reiterate that our core business remains human challenge trials. We believe the current downturn is a dip. It's it's it's temporary. Long term, the utility of human challenge trials is there. There is still robust. No no single client or regulate regulatory authority has said that human challenge trials are irrelevant. People understand that the concept provides good data really fast and fairly at a low price. So we believe this concept will definitely come back. In fact, when it does come back, we should see a a boost.

33:43 One, because there will be a glug of drugs that are basically on hold at the moment and that will come into the human challenge drug concept. And secondly, you know, without push towards promoting human challenge trials and expediting the research of vaccines, making them cheaper for patients should also hopefully have an impact. This question also, what makes you confident? HCT will make a comeback. Hopefully, I have answered that. But there are two key, I mean, very large opportunities we're currently working on. I mean, they're you know, typically, our human challenge trial contracts is around, you know, 5 to £7,000,000. These are significantly higher. Both are what I would call in in late stage opportunities.

34:29 One is effectively a verbal award. We're just waiting for the client to get the funding and then sign on the dotted line. The second opportunity is with a large global pharma who would now have internal financial approval to go ahead, with the study, and we expect them to make a decision in 2026. There is talk that large studies and large field trials have been in the pipeline. Are they still there? So those two large child studies are in the pipeline. And the large study field study, we're actually just starting that up. That that is part of our q four revenue, this year. We will be recruiting patients on a on a large phase three, vaccine trial this year. Your strategy has been to diversify the revenue, based by acquisition.

35:20 Do you have more potential targets in the pipeline? If so, which areas? We're always looking for targets. Of course, right now, we wanna focus on returning the current company as it is back to growth. But if there are any opportunistic assets out there that fit well to our kind of service provision, then, of course, we will look at them seriously and and and execute on the M and A strategy. So, Steven, this is one is for you. What proportion of your revenue is recurring? Okay. It depends on how you define recurring. If you're deferring recurring as a contractual obligation to continue working with you all the time, that is fairly limited. But we do have consultancy business that delivers about 6,000,000 just over £6,000,000 annually, and it's consistently with the same clients. And it's very sticky, and we we call it a type of recurring revenue. It's very sticky revenue.

36:20 And, also, Crystall would be another example of a like recurring type of revenue, whereas Crystall scientists love love to hold on to their samples. They find it very difficult to ditch the samples. And, you know, when we bought Crystall, we looked at his revenue base and his customer base, and it's been there, you know, 95% on average of that customer base and revenue base rolls over every single year. So you in terms of our tool, you know, we have quite sticky revenue. It would be around about 7,000,000, but that doesn't take into account some of the long return, long relationships we have. We do have some MSAs in CRS.

37:06 We acquired three or four MSAs. Although they're not obliged to give you work, you do have that relationship. You have that volume discount that that that they earn or win with the the additional work they're coming through. So we do have some, I would say, some sticky relationships across the group, both in HCT as well in CRX because HCT, we do work with the big pharma. They come back to you all the time, particularly as we have a early world client. So we do you know, contractually, it's not recurring. But in behavior terms, there is an element of recurring relationships here. Okay. China and India are the largest producers of vaccine. Why isn't HVIVO looking for business there? We are looking for business, there, but not, typically the the producers. So just to be clear, majority of the vaccine, the innovators are biotechs and big pharma based in Europe or The United States. And once they've completed their development, for that those vaccines got the marketing authorization.

38:08 They then go to India and China to manufacture those vaccine mass at scale. So those manufacturers typically don't have to do any research. They're just manufacturing on behalf of the the big pharma typically based in Europe or The US. Did the client who paid for the Canadian Wolf move sign a contract for a challenge drug? Yes. They have done that. Is the new facility in Canadian work working, and is there a way to reduce this space given new market access? So the Canadian work facility is working really well. One of the key components really is the lab. So we did did expand significantly the lab space when moved out from White Capital into Greene Wolf, and we we're seeing that investment now give a really good return with an increased proportion of standard on the work that we are conducting. And we are looking at different ways to utilize the space we have as well as before performing the human challenge trials there.

39:09 Are HVIVO evaluating buybacks? Not right now, but in the future, this is something we may consider depending on our cash position. I think that's that's it. That's all we have time for. It's twenty two seven. So I think I'll I'll wrap it up there. Absolutely. Moe, Steven, if I may just jump back in there, thank you very much indeed for addressing those questions that came in for investors. And, course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended. But, Moe, perhaps before really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments just to wrap up with, that'd be great. Well, thank you. Of course. So look. 2025 has been a challenging year, for HVIVO, together with many other CROs, in our sector.

39:56 But we are the world leader in human challenge trials, and we believe vaccines have a future. So if you believe that the science behind vaccines is is true and vaccine do work, then the human challenge trials are here to stay. The the current dip in vaccine development and maybe vaccine uptake will inevitably lead to increase in infectivity rates and thereby proving that the vaccine do work. I hope that doesn't happen, but vaccines are essential for treating these infectious diseases and keeping them in in control and developing the herd immunity that we we need to keep these viruses away. We've also, on top of that, diversified to new areas. Our laboratory service line is performing strongly.

40:43 I'm very pleased with CRS and and and the first in human phase one trials and also with regards to cardiometabolic disease franchise that they are developing. We look to expand on that and they will develop repeat business from a number of mid sized pharma companies in Germany. So '25 is a challenging year. '26 will be a a year of growth. We're confident of that. And '27, is where we will bounce back. Of course, all of this can expedite if we do see a normalization of the human challenge for us earlier. Thank you for your loyalty to HVIVO, and I'm with you on this journey. I have invested myself as as a Steven into company. We do believe this is a a great enterprise with a very bright future. Thank you.

41:30 That's great. Most even, thank you once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order the management team can really best understand your views and expectations? This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of HVIVO PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good evening to you all.