Hvivo acquires two clinical research units, FY revenues up 11.9pc

Contract research organisation Hvivo said on Wednesday that it has acquired two clinical research units from German outfit CRS Clinical Research Services.

Hvivo said the acquisition gives it "a significant footprint" in Europe, with 120 beds across two sites in Germany, and was the first step in its M&A strategy and further diversifies its services to include in-patient Phase I and Phase II trials across a broader range of therapeutic areas.

The AIM-listed group stated the total consideration for the acquisition was €10.0m in cash, funded from existing cash resources. The acquisition was expected to be earnings accretive in 2026.

Separately, Hvivo said revenues were up 11.9% in the twelve months ended 31 December at £62.7m and underlying earnings margins had improved from 23.3% in FY23 to roughly 26% in FY24.

Hvivo stated the significant uplift in revenue and margins was driven by "strong operational delivery", including the recruitment of a record number of human challenge trial participants and improved utilisation rates, delivery of the group's largest Phase II field study to date, and recognition of £4.3m client funding towards its new Canary Wharf facility.

As of 1050 GMT, Hvivo shares had sunk 9.80% to 18.40p.

Reporting by Iain Gilbert at Sharecast.com