In a significant expansion of its clinical research capabilities, hVIVO plc, the world leader in human challenge clinical trials, has acquired two Clinical Research Units (CRUs) from German-based CRS Clinical Research Services Management GmbH for €10 million. The all-cash transaction marks hVIVO's first major step in its M&A strategy and substantially broadens its service portfolio in early-stage clinical development.
The acquisition encompasses CRS's facilities in Mannheim and Kiel, adding a total of 120 beds to hVIVO's capacity. The Mannheim facility, with 94 beds, stands as one of Germany's largest clinical trial facilities, while the Kiel unit brings specialized expertise in renal and hepatic impairment studies.
Strategic Expansion of Services
The newly acquired units bring significant expertise in conducting cardiometabolic, immunology/inflammation, and complex PK/PD studies in healthy volunteers. The expansion enables hVIVO to offer comprehensive Phase I and in-patient Phase II clinical trial services, including:
- First-in-human trials
- Single and Multiple Ascending Dose studies (SAD/MAD)
- Bioequivalence and Bioavailability studies
- QTc and Drug-Drug Interaction trials
- Specialized renal and hepatic impairment studies
Financial Impact and Growth Prospects
The acquired units demonstrated strong performance, recording revenues of €19.9 million in 2024 (unaudited) and €18.6 million in 2023. While currently operating at an adjusted EBITDA loss, hVIVO expects the acquisition to become earnings accretive by 2026 following a planned €2.5 million investment and restructuring program in 2025.
The enlarged group enters 2025 with a weighted contracted orderbook of £67 million, supported by hVIVO's record delivery of £62.7 million revenue in 2024. Management has provided guidance for:
- 2025 revenue target of £73 million
- Mid-to-high teens EBITDA margins (excluding one-off costs)
- Strong revenue growth projected for 2026
Leadership and Integration
Dr. Elisabeth Lackner, CEO of CRS, commented, "The combination of CRS's clinical trial sites with hVIVO's expertise creates new opportunities to benefit our global client base. Our complementary infrastructures will enhance the combined group's service offering."
Yamin 'Mo' Khan, CEO of hVIVO, stated, "This acquisition aligns perfectly with our M&A strategy to find complementary businesses that broaden our service offering. CRS's expertise in early clinical development, combined with our established capabilities, creates significant synergies and growth opportunities."
Market Position and Future Outlook
The acquisition strengthens hVIVO's competitive position by:
- Establishing a significant footprint in continental Europe
- Expanding client base to include four of the world's top 10 biopharma companies
- Creating cross-selling opportunities across services
- Enabling multi-site trials across UK and German locations
The company maintains its ambitious target of achieving £100 million in group revenue by 2028, with this acquisition representing a significant milestone toward that goal. The integration of CRS's facilities and expertise positions hVIVO as a more comprehensive provider in the early-stage clinical development landscape.
