Open Orphan Shares Jump On $13.4m Contract Win

Open Orphan (LON: ORPH) shareholders have been given a boost Friday after the company's subsidiary, hVIVO, signed a $13.4 million contract with a US-based biotechnology firm. 

hVIVO will be testing the biotech company's novel antiviral candidate using its Influenza Human Challenge Study Model. The study is set to start in London the second half of 2022.

In addition, the majority of revenues will be recognised in 2022. 

Open Orphan explained that the pandemic has increased the investment needed from governments and pharmaceutical companies to develop treatments for a range of diseases, and it expects to sign an increasing number of contracts in the area.

Open Orphan has already won numerous contracts this year, including a £5.1m contract with a biopharmaceutical company, and an £8.1m Asthma Human Challenge Study contract win. 

Following today's contract win, Open Orphan shares are up 9.73% to 20.3p.

Cathal Friel, Executive Chairman of Open Orphan, said: “We are delighted to announce this significant challenge study contract valued at over £10m, with a US-based biotechnology client testing its highly promising influenza antiviral candidate. 

“This contract demonstrates the Company's continued ability to convert its leading portfolio of challenge study models into substantial contracts, with signed contracts across a number of our challenge study models including RSV, asthma, hRV, and flu in the clinic next year. This underlines our market position as the world leader in the testing of vaccines, antivirals and respiratory products using human challenge trials.”

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