LONDON (ShareCast) - (Sharecast News) - hVIVO announced on Tuesday that it has secured its largest standalone laboratory contract to date, with its hLAB division signing a £2.7m deal with a US-based biotechnology client, bringing the total value of the project to £3.2m.
The AIM-traded firm said that under the agreement, hLAB would serve as the sole contracted virology laboratory for an international multi-site phase two field study of the client's influenza drug candidate.

It said the study, which would involve 5,000 participants, was set to begin immediately, with hLAB providing virology and immunology laboratory services.

The majority of revenue from the contract was expected to be recognised in 2025, with the remainder in 2026.

It said the initial phase of the project started in the second half of 2024.

hLAB, which has more than two decades of experience in virology and clinical trial support, has traditionally provided laboratory services for hVIVO's own challenge trials.

Following the company's relocation to its new Canary Wharf facility, laboratory capacity had tripled, allowing hLAB to offer specialised virology and immunology services as standalone solutions.

Those services include assay development, transfer and optimisation, as well as sample handling and processing through its biobank facility.

"It is wonderful to see hLAB secure its largest contract to date, following the launch of its standalone services in September 2024," said chief executive officer Yamin 'Mo' Khan.

"hLAB is highly specialised and a leader in its field with over 20 years' experience in infectious and respiratory disease drug development."

Khan said the contract underlined another benefit of the move to the group's new Canary Wharf facility, with the additional lab capacity enabling hLAB to service standalone contracts in addition to human challenge trial work, as well as offering field studies.

"These services support the group's 'optimise, scale and diversify' growth strategy, by leveraging our existing infrastructure and staff to provide a high-margin new revenue stream."

At 1408 GMT, shares in hVIVO were up 5.03% at 18.8p.

Reporting by Josh White for Sharecast.com.

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