Open Orphan Plc (HVO) AI Stock Analysis

• Market Cap: £75.57M
• Dividend Yield: 1.82%
• Average Volume (3M): 4.91M
• Price to Earnings (P/E): 7.0
• Beta (1Y): >-0.01
• Revenue Growth: 11.92%
• EPS Growth: -33.76%
• Country: UK
• Employees: 301
• Sector: Healthcare
• Sector Strength: 59
• Industry: Biotechnology
• EPS (TTM): <0.01
• Shares Outstanding: 687,014,100
• 10 Day Avg. Volume: 5,173,202
• 30 Day Avg. Volume: 4,907,830
• PEG Ratio: -0.08
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £30.00
• Price Target Upside: 172.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: 13.00p ▲(18.18%Upside)

The overall stock score reflects strong financial performance and positive corporate developments. Key strengths include robust revenue growth and strategic acquisitions, enhancing future prospects. However, technical indicators show bearish momentum, and leadership changes present some risks.

Positive Factors

Acquisitions and Integration

The integration of recent acquisitions CRS and Cryostore is progressing as planned, which is expected to positively impact the company's future revenues.

Contract Wins

HVIVO has signed a significant £11.5m contract with an existing top-tier pharma client to test its undisclosed antiviral candidate using hVIVO's established RSV human challenge study model.

Strategic Moves

HVIVO’s move to its new facility at Canary Wharf has tripled its laboratory capacity and this contract would not have been possible without this additional capacity.

Negative Factors

Contract Announcements

The market is concerned about the slowdown in HCT contract announcements and therefore 2025 guidance.

Funding Environment

The continued tight biotech funding environment was highlighted as the primary headwind, versus wider market concerns.

Market Concerns

The market remains focused on the need for further conversion of new contracts to build revenue cover as 2025 progresses, indicating a potential risk if not addressed.

Open Orphan Plc Business Overview & Revenue Model

Company Description

hVIVO plc operates as a pharmaceutical service and contract research company. The company is involved in testing vaccines and antivirals using human challenge clinical trials. It provides services to big pharma, biotech, government, and public health organizations. The company has a portfolio of human challenge study models for conditions, such as RSV, flu, human rhinovirus, asthma, malaria, cough, and COPD, as well as developing COVID-19 human challenge study model. In addition, the company is developing a database of infectious disease progression data that include Disease in Motion platform, which comprises unique datasets, such as clinical, immunological, virological, and digital (wearable) biomarkers. The Disease in Motion platform has various potential applications across a range of end users, including big technology, wearables, pharma, and biotech companies. Further, the company provides pre­clinical and early clinical research services; sales and marketing services; and biometry, data management, and statistics to its various European pharmaceutical clients, as well as drug development consultancy and services, including CMC (chemistry, manufacturing, and controls), and PK and medical writing to a range of European clients. The company was formerly known as Open Orphan Plc and changed its name to hVIVO plc in October 2022. hVIVO plc is headquartered in London, the United Kingdom.

How the Company Makes Money

Open Orphan Plc generates revenue primarily through its provision of clinical trial services, focusing on human challenge trials that help pharmaceutical companies test the efficacy of vaccines and antivirals. Key revenue streams include fees from conducting these trials, which involve the deliberate exposure of healthy volunteers to infectious agents under controlled conditions. The company also earns income from its contract research services, offering end-to-end clinical development support. Significant partnerships with pharmaceutical companies are crucial, as these collaborations can lead to repeat business and long-term contracts, thereby contributing to Open Orphan's earnings. Additionally, the company's expansion into data and biobank services provides supplementary revenue channels.

Open Orphan Plc Financial Statement Overview

Summary

Open Orphan Plc demonstrates strong growth and profitability in the biotechnology sector. The income statement highlights robust revenue and profit growth, while the balance sheet shows financial stability with low leverage. However, cash flow management could be improved to ensure sustainable long-term growth.

Income Statement

The company shows strong revenue growth, with a significant increase from 2023 to 2024. The gross profit margin is very high as cost of goods sold is minimal or zero. The net profit margin is robust, reflecting effective cost management, although it has slightly decreased from the previous year. The EBIT and EBITDA margins show healthy operating profitability, indicating improved operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a solid equity ratio. The debt-to-equity ratio remains low, indicating a conservative leverage stance. Return on equity is positive, showcasing effective use of shareholder funds, although there is room for improvement in leveraging equity to generate higher returns.

Cash Flow

Operating cash flow is positive, but has decreased compared to the previous year. The free cash flow to net income ratio suggests efficient cash generation relative to net income, although free cash flow has declined. The company needs to focus on maintaining healthy cash flow to support operations and growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
62.73M	56.04M	48.48M	36.86M	20.60M
	Gross Profit
62.73M	10.41M	4.00M	35.90M	19.88M
	EBIT
12.86M	10.10M	6.02M	590.00K	-10.44M
	EBITDA
17.80M	14.02M	9.77M	3.07M	-8.55M
	Net Income Common Stockholders
10.65M	16.11M	-776.00K	-74.00K	-10.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.18M	36.97M	28.44M	15.69M	19.20M
	Total Assets
88.89M	83.23M	51.38M	42.27M	48.55M
	Total Debt
12.90M	12.53M	1.56M	3.15M	4.80M
	Net Debt
-31.28M	-24.44M	-26.88M	-12.55M	-14.41M
	Total Liabilities
44.22M	48.90M	31.16M	21.59M	26.25M
	Stockholders Equity
44.67M	34.33M	20.22M	20.68M	22.30M
Cash Flow		Free Cash Flow
7.88M	12.06M	14.62M	-2.30M	3.08M
	Operating Cash Flow
10.34M	17.24M	15.98M	-1.56M	4.17M
	Investing Cash Flow
-660.00K	-5.18M	-1.36M	-739.00K	1.18M
	Financing Cash Flow
-2.40M	-4.70M	-1.83M	-1.20M	13.04M

Open Orphan Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HVO, the sentiment is Negative. The current price of 11 is below the 20-day moving average (MA) of 13.61, below the 50-day MA of 15.23, and below the 200-day MA of 20.36, indicating a bearish trend. The MACD of -1.48 indicates Positive momentum. The RSI at 34.56 is Neutral, neither overbought nor oversold. The STOCH value of 68.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HVO.

Open Orphan Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HVO	65 Neutral	£75.57M	7.01	26.97%	1.82%	11.92%	-33.76%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
AVCT		£135.37M	―	-73.02%	―	―	―
SBTX	49 Neutral	£40.38M	―	-63.28%	―	1557.07%	24.70%
SCLP	46 Neutral	£102.38M	―	167.16%	―	-100.00%	-23.91%
4BB		£152.40M	―	-95.28%	―	―	―
OBI		£46.54M	―	-430.02%	―	―	―

Open Orphan Plc Corporate Events

hVIVO Leadership Buys Shares, Signals Confidence in Growth

hVIVO plc announced that its CEO, Yamin ‘Mo’ Khan, and CFO, Stephen Pinkerton, purchased shares in the company, signaling their confidence in its growth prospects despite recent shareholder concerns. The company boasts its largest ever sales pipeline and is excited about new revenue streams from its hLAB services and CRS’s early-phase clinical trial services, indicating a strong future outlook.

The most recent analyst rating on (GB:HVO) stock is a Buy with a £35.00 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

hVIVO Faces Contract Cancellations Amid Industry Volatility but Remains Optimistic

hVIVO plc announced the cancellation and postponement of significant human challenge trial contracts, attributed to uncertainties in the pharmaceutical industry and a depressed biotech financing market. Despite these setbacks, the company maintains a strong sales pipeline with high-value opportunities and expects further contract wins in FY25. The integration of CRS Mannheim and Kiel, along with Cryostore, is progressing well, and hVIVO remains financially robust with a strong cash position, aiming to diversify its revenue streams and expand its CRO services.

The most recent analyst rating on (GB:HVO) stock is a Buy with a £35.00 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

hVIVO Appoints Tracey James as Independent Non-Executive Director

hVIVO plc has appointed Tracey James as an Independent Non-Executive Director, effective from June 1, 2025. With extensive experience in audit and risk management, particularly with AIM-listed companies, Tracey is expected to strengthen the board’s expertise as hVIVO continues to integrate its diverse revenue streams and deliver progress for clients and shareholders.

The most recent analyst rating on (GB:HVO) stock is a Buy with a £35.00 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

hVIVO Announces Annual Report and Directorate Changes

hVIVO plc has announced the release of its Annual Report and Accounts for 2024, along with the Notice of its upcoming Annual General Meeting (AGM). The company also disclosed a directorate change, with Non-Executive Director Martin Gouldstone stepping down to focus on other business interests, and Cathal Friel, the co-founder and Chair, not seeking re-election. Dr. Elaine Sullivan will serve as Interim Chair until a permanent successor is appointed. These changes are expected to bring new expertise and leadership to hVIVO as it continues to execute its strategic objectives.

hVIVO plc Announces Option Exercise and Share Issuance

hVIVO plc announced the exercise of 202,092 options by employees, including the Chief Financial Officer, Stephen Pinkerton, under the company’s 2020 Long Term Incentive Plan. This transaction will result in the issuance of new ordinary shares, increasing the total number of shares in issue to 687,014,088, with equal voting rights. This development reflects the company’s ongoing commitment to incentivizing its employees and could impact its market positioning by potentially increasing shareholder value.

hVIVO Reports Record 2024 Results and Strategic Acquisitions

hVIVO plc reported record financial results for 2024, with revenue increasing by 11.9% to £62.7 million and EBITDA rising by 25.9% to £16.4 million. The company has made significant strategic progress, including the signing of key contracts and the acquisition of two Clinical Research Units from CRS, which are expected to enhance earnings and expand revenue streams. The company is focusing on integrating these new assets and maintaining its growth trajectory, with a medium-term revenue target of £100 million by 2028. The announcement also noted the departure of Chair Cathal Friel, who played a pivotal role in the company’s transformation.

hVIVO Announces Director Update Amid Oncimmune Administration

hVIVO plc announced an update regarding its Non-Executive Director, Martin Gouldstone, who is also the CEO of Oncimmune Holdings plc. Oncimmune Holdings has been placed into administration as of March 26, 2025. This development may have implications for hVIVO’s governance and could impact stakeholders’ perceptions of the company’s stability and leadership.

hVIVO plc to Announce 2024 Financial Results on April 10, 2025

hVIVO plc has announced the release of its final results for the year ended 31 December 2024, scheduled for 10 April 2025. The announcement includes an analyst briefing and an investor presentation, which will be led by CEO Yamin ‘Mo’ Khan and CFO Stephen Pinkerton. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.