Open Orphan Plc (HVO) AI Stock Analysis

• Market Cap: £34.35M
• Dividend Yield: 4%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 3.2
• Beta (1Y): -0.14
• Revenue Growth: 11.92%
• EPS Growth: -33.76%
• Country: UK
• Employees: 301
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): <0.01
• Shares Outstanding: 687,014,100
• 10 Day Avg. Volume: 2,644,461
• 30 Day Avg. Volume: 1,966,466
• PEG Ratio: -0.38
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 17.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £17.50
• Price Target Upside: 146.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.57
• Revenue Forecast (FY): £3.53B

• Rating: 72 Outperform
• Price Target: 5.50p ▼(-22.54% Downside)

Open Orphan Plc's overall stock score is driven by strong corporate events and attractive valuation, offset by bearish technical indicators. The company's financial performance is solid, with growth and profitability, but cash flow management needs improvement. The stock's undervaluation and positive corporate developments are significant strengths, while technical analysis suggests caution due to current market momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market demand for Open Orphan's services, enhancing its competitive position and long-term viability.

Market Position

Specialization in human challenge studies positions Open Orphan as a leader in a niche market, providing a competitive edge and potential for sustained demand.

Balance Sheet Health

A strong equity position with low leverage enhances financial stability, providing resilience against economic fluctuations and supporting future growth.

Negative Factors

Cash Flow Management

Decreasing operating cash flow may constrain the company's ability to fund operations and growth initiatives, potentially impacting long-term sustainability.

Earnings Volatility

Negative EPS growth suggests earnings volatility, which can undermine investor confidence and affect the company's ability to attract capital for expansion.

Profit Margin Decline

A decline in net profit margin may indicate rising costs or pricing pressures, which could erode profitability if not managed effectively over time.

Open Orphan Plc Business Overview & Revenue Model

Company Description

Open Orphan Plc (HVO) is a specialist contract research organization (CRO) based in the United Kingdom that focuses on providing services to the pharmaceutical and biotechnology industries. The company specializes in conducting clinical trials for infectious diseases and offers a range of services including the development of human challenge studies, patient recruitment, and data analysis. Open Orphan is known for its proprietary human challenge study platform, which allows for the rapid assessment of new vaccines and treatments.

How the Company Makes Money

Open Orphan generates revenue primarily through its contract research services, which include conducting clinical trials for clients in the pharmaceutical and biotechnology sectors. The company earns money by charging fees for its clinical trial services, which can include study design, patient recruitment, and data management. Additionally, Open Orphan has developed partnerships with various pharmaceutical companies to provide specialized services, including its unique human challenge studies, which allow for quicker and more effective testing of new therapies. These partnerships often include fixed-price contracts and milestone payments, contributing significantly to the company's revenue stream.

Open Orphan Plc Financial Statement Overview

Summary

Open Orphan Plc demonstrates strong growth and profitability in the biotechnology sector. The income statement highlights robust revenue and profit growth, while the balance sheet shows financial stability with low leverage. However, cash flow management could be improved to ensure sustainable long-term growth.

Income Statement

The company shows strong revenue growth, with a significant increase from 2023 to 2024. The gross profit margin is very high as cost of goods sold is minimal or zero. The net profit margin is robust, reflecting effective cost management, although it has slightly decreased from the previous year. The EBIT and EBITDA margins show healthy operating profitability, indicating improved operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a solid equity ratio. The debt-to-equity ratio remains low, indicating a conservative leverage stance. Return on equity is positive, showcasing effective use of shareholder funds, although there is room for improvement in leveraging equity to generate higher returns.

Cash Flow

Operating cash flow is positive, but has decreased compared to the previous year. The free cash flow to net income ratio suggests efficient cash generation relative to net income, although free cash flow has declined. The company needs to focus on maintaining healthy cash flow to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.98M	62.73M	56.04M	48.48M	36.86M	20.60M
Gross Profit	57.01M	62.73M	10.41M	4.00M	35.90M	19.88M
EBITDA	12.09M	17.80M	14.02M	2.70M	3.07M	-8.55M
Net Income	5.28M	10.65M	16.11M	-776.00K	-74.00K	-10.79M
Balance Sheet
Total Assets	85.67M	88.89M	83.23M	51.38M	42.27M	48.55M
Cash, Cash Equivalents and Short-Term Investments	23.29M	44.18M	36.97M	28.44M	15.69M	19.20M
Total Debt	14.70M	12.90M	12.53M	1.56M	3.15M	4.80M
Total Liabilities	42.04M	44.22M	48.90M	31.16M	21.59M	26.25M
Stockholders Equity	43.63M	44.67M	34.33M	20.22M	20.68M	22.30M
Cash Flow
Free Cash Flow	-1.01M	7.88M	12.06M	14.62M	-2.30M	3.08M
Operating Cash Flow	188.00K	10.34M	17.24M	15.98M	-1.56M	4.17M
Investing Cash Flow	-9.14M	-660.00K	-5.18M	-1.36M	-739.00K	1.18M
Financing Cash Flow	-4.76M	-2.40M	-4.70M	-1.83M	-1.20M	13.04M

Open Orphan Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HVO, the sentiment is Negative. The current price of 7.1 is above the 20-day moving average (MA) of 5.87, above the 50-day MA of 6.55, and below the 200-day MA of 11.22, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 18.30 is Positive, neither overbought nor oversold. The STOCH value of 17.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HVO.

Open Orphan Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HVO	72 Outperform	£34.35M	3.18	―	4.00%	11.92%	-33.76%
AVCT	54 Neutral	£342.41M	―	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SCLP	46 Neutral	£102.22M	-7.46	―	―	―	-94.12%
OBI	46 Neutral	£58.32M	-2.83	―	―	63.25%	8.94%
4BB	41 Neutral	£121.56M	-7.90	-209.34%	―	198.49%	-26.66%
SBTX	40 Underperform	£41.73M	-12.90	-11.24%	―	283.74%	78.57%

Open Orphan Plc Corporate Events

hVIVO’s Role in Cidara’s $9.2 Billion Acquisition by MSD

hVIVO plc announced that its client, Cidara Therapeutics, has been acquired by Merck Sharp & Dohme LLC for approximately $9.2 billion following positive results from a Phase IIb trial of Cidara’s lead candidate, CD388. This acquisition highlights hVIVO’s role in accelerating drug development and underscores its strategic importance in supporting breakthrough therapies. hVIVO has been instrumental in the development of CD388, providing critical data from early proof-of-concept to late-stage trials, and continues to support its Phase III development. The company’s ability to execute large-scale field studies and its diversification into standalone laboratory services are validated by this transaction.

hVIVO’s Client Cidara Acquired by MSD After Successful Trial

hVIVO plc announced that its client, Cidara Therapeutics, has entered into an agreement to be acquired by Merck Sharp & Dohme LLC for approximately $9.2 billion, following positive results from a Phase IIb trial of Cidara’s lead candidate, CD388. This acquisition highlights hVIVO’s role in accelerating drug development and supporting breakthrough therapies, as the company has been instrumental in the development of CD388, providing critical data and conducting large-scale field studies. hVIVO’s involvement underscores its capabilities in human challenge trials and its diversification into field studies and laboratory services, reinforcing its position in the infectious disease space.

hVIVO’s German Subsidiary Secures £5 Million in New Contracts

hVIVO plc’s German subsidiary, CRS, has secured over £5 million in early-phase clinical trial service contracts with five clients, including two returning mid-sized German pharma companies. These contracts, which will commence in 2025 and 2026, will enhance the company’s sales pipeline and orderbook, with trials focusing on multiple therapeutic areas such as cardiometabolic and cancer. The integration of CRS into hVIVO has resulted in cross-selling benefits and improved operational efficiency, positioning CRS to become earnings accretive by 2026, thereby strengthening hVIVO’s market position in early-phase clinical research.

hVIVO Unveils Positive Data from Novel Human Challenge Models at Key Conferences

hVIVO plc has announced positive data from its novel human challenge models presented at key industry conferences in 2025. The company showcased its advancements in human challenge models for hMPV, SARS-CoV-2 Omicron, and RSV B, highlighting their safety, efficacy, and readiness for vaccine and antiviral trials. These developments reinforce hVIVO’s leadership in the field and its commitment to accelerating vaccine and therapeutic development, meeting the evolving needs of the industry.

hVIVO to Present at Europe’s Largest Healthcare Conference

hVIVO plc announced that its CEO, Yamin ‘Mo’ Khan, will present at the Jefferies Global Healthcare Conference in London on November 20, 2025. This event, the largest healthcare-dedicated conference in Europe, will host over 700 companies and 3,600 attendees. While no new material information will be disclosed, the presentation underscores hVIVO’s prominent role in the healthcare sector and its commitment to engaging with key industry stakeholders.

hVIVO Reports Interim Results and Eyes Growth in 2026

hVIVO plc reported its interim results for the first half of 2025, showing a revenue of £24.2 million, in line with expectations for the full year. Despite a decrease in revenue and EBITDA compared to the previous year, the company is optimistic about returning to growth in 2026. The integration of recent acquisitions, CRS and Cryostore, is nearing completion, with sales synergies being realized. The company has signed significant contracts, including a £3.2 million hLAB contract and a letter of intent for a major Phase III human challenge trial. hVIVO’s diversification strategy is showing early success, with a strong sales pipeline and new service lines contributing to future growth prospects. The company expects to achieve high-single digit revenue growth in 2026 as market conditions normalize.