hVIVO announces new Canary Wharf trial facility

29th Aug 2023 14:17

(Sharecast News) - Human challenge trial specialist hVIVO announced plans to open a new state-of-the-art facility at the rapidly-expanding life sciences hub in Canary Wharf, London on Tuesday.

The AIM-traded firm said the move was designed to meet rising demand for its services, and was being largely funded by its existing clientele.

It said the upcoming facility would be a multi-purpose site featuring quarantine bedrooms, cutting-edge laboratories, an outpatient unit, and corporate offices, distributed across two floors.

The facility would have the capacity to accommodate 50 quarantine beds initially, with the potential to expand to 70 beds to meet future needs.

It said the high-security facility would allow hVIVO to conduct more human challenge trials concurrently.

With an in-house outpatient unit for phase two and three field trials, and advanced virology and immunology laboratories, the company was aiming to diversify its service offerings and work with a broader range of pathogens.

The first phase of the new facility was expected to be completed by the first quarter of next year, with the full facility slated to be operational by the second quarter of the same year.

hVIVO said its current clinics in Whitechapel and at the Queen Mary Bioenterprises Centre (QMB) were expected to close in 2024, but would remain operational during the transition.

That, the board said, would ensure that there would be no disruption in services to the company's clients.

Meanwhile, existing screening facilities at Plumbers Row and Manchester FluCamp would continue to operate as usual.

The demand for accelerating studies and preparedness for potentially larger challenge trials from multiple clients had led to a significant amount of customer-led funding for the new facility.

While maintaining a similar cost-per-bed ratio to the existing facilities, the new layout would consolidate all quarantine beds on a single floor.

That, the company explained, would enhance operational efficiency, including staff utilisation, and was expected to result in cost savings.

The consolidation and expansion were also aimed at maximising revenue through the use of more beds and the provision of additional services.

"I am excited to share the news of our upcoming relocation to a new larger state-of-the-art facility," said chief executive officer Mo Khan.

"The new facility will feature increased capacity and offer the potential for up to 70 quarantine beds, which will enable us to increase the capacity for the company to generate revenues.

"The new facility will also allow us to conduct a greater number of trials concurrently across various challenge models enabling the company to maintain a higher level of capacity throughout the year."

Furthermore, Khan said hVIVO would expand its laboratory capability, facilitating the broadening of its service offerings.

"Consolidating our operations into a single location will lead to improved operational efficiencies, ultimately enhancing our profit margins.

"We have exercised prudent financial management throughout this expansion, and I am pleased that a number of our clients have contributed to its funding.

"Their support underscores the urgency and importance of accelerating drug development, and the crucial role that human challenge trials are increasingly playing in the development of new vaccines and antivirals."

At 1358 BST, shares in hVIVO were up 5.71% at 18.5p.

Reporting by Josh White for Sharecast.com.