Stock market listed pharmaceutical services firm Hvivo has signed a £16.8m (€19.5m) contract with an existing pharmaceutical client.

The contract will see Hvivo test the pharmaceutical company’s respiratory syncytial virus (RSV) antiviral drug candidate using the Hvivo RSV human challenge study model.

Irish founded Hvivo, previously known as Open Orphan, runs drug trials known as challenge studies from its London clinics.

The contract also includes the expedited manufacturing of the RSV challenge challenge agent, as well as a confirmatory challenge cohort and a multiple cohort challenge trial.

The purpose of the trial is to evaluate the efficacy of the client’s antiviral drug candidate against infection in healthy adults, Hvivo said. It will then identify the most effective dosing ahead of later stage clinical trials.

Revenue from this contract will begin this year and will continue into 2024 and 2025. The majority of the revenues will be recognised next year, the company reported.

Hvivo will now begin good manufacturing practice compliant virus manufacturing activities immediately, with this stage expected to be completed in the first half of next year.

Human challenge trials are then set to commence in the second half of next year in the company’s new quarantine facilities in Canary Wharf, which are set to open in the first six months of 2024.

The firm also reported that revenue for the year is slightly ahead of previous market expectations following strong trading.

The group also anticipates that earnings before interest, taxes, depreciation and amortisation (Ebitda) will also be ahead of expectations, with Ebtida margins exceeded 20pc for the year.

“Our RSV (Memphis strain) challenge agent has played a significant role in the development of RSV vaccines and we are delighted that it is continuing to be used as the go-to model for our clients,” chief executive Yamin ‘Mo’ Khan said.

"We have built a world-leading portfolio of challenge agents and are working hard with our clients to add new models all the time. This contract is another example of the end-to-end full service offering that Hvivo has already successfully provided to several clients,” he added.

Reporting On:www.independent.ie