hVIVO PLC's subsidiary, hLAB, has been awarded a significant £2.7 million contract to provide virology and immunology lab services for a Phase 2 field study of a US-based biotechnology client's influenza drug candidate. This contract, the largest standalone laboratory services agreement in hLAB's history, underscores the company's growing capabilities and strategic diversification.
Scope of the Agreement
Under the terms of the contract, hLAB will act as the exclusive virology laboratory for an international, multi-site Phase 2 trial. The study will involve the analysis of samples from approximately 5,000 subjects. hLAB's responsibilities will encompass comprehensive virology and immunology services, leveraging its extensive experience in infectious and respiratory disease drug development.
Financial Impact and Timeline
The majority of the revenue from this £2.7 million contract is anticipated to be recognized in 2025, with the remaining portion expected in 2026. This financial influx will contribute to hVIVO's overall growth strategy, which focuses on optimizing, scaling, and diversifying its service offerings. The earlier contract commenced in the second half 2024.
Strategic Significance
This contract marks a pivotal moment for hLAB, demonstrating its ability to secure large-scale, standalone laboratory service agreements. Yamin Khan, Chief Executive Officer of hVIVO, emphasized the strategic importance of this achievement, stating that it highlights the benefits of the company's new Canary Wharf facility. The expanded lab capacity enables hLAB to support both internal human challenge trials and external contracts, including field studies.
hLAB's Expanding Role
The award of this contract signifies hLAB's evolution from primarily supporting hVIVO's internal challenge trials to offering a broader range of services to external clients. With over 20 years of experience in infectious and respiratory disease drug development, hLAB is well-positioned to capitalize on the growing demand for specialized virology and immunology laboratory services. This contract supports the group's 'optimise, scale and diversify' growth strategy, by leveraging existing infrastructure and staff to provide a high-margin new revenue stream.
