Open Orphan Plc (HVO) AI Stock Analysis

• Market Cap: £41.22M
• Dividend Yield: 2.94%
• Average Volume (3M): 7.17M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.19
• 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: 16,921,125
• 30 Day Avg. Volume: 7,174,585
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 6.50p ▼(-8.45% Downside)

Open Orphan Plc's overall stock score is driven by strong financial performance and attractive valuation. The company's robust revenue growth and low leverage position it well in the biotechnology sector. While technical indicators show bullish momentum, the stock is trading below key moving averages, suggesting potential resistance. The low P/E ratio and reasonable dividend yield enhance its attractiveness to value and income investors.

Positive Factors

Proprietary human challenge platform

Owning a specialized human challenge study platform is a durable competitive advantage for a CRO: it shortens clinical timelines, attracts repeat pharma partnerships, supports premium pricing and differentiation, and raises barriers to entry versus generic CRO services.

Conservative leverage / strong equity position

Low leverage and a solid equity ratio provide financial flexibility across the long clinical development cycles typical in biotech. This reduces refinancing risk, enables opportunistic investment or M&A, and helps the business absorb contract timing variability without immediate capital raises.

High gross and operating margins

Persistently high gross and operating margins reflect a scalable service model with low direct COGS. Durable margin structure supports reinvestment in platform capabilities, funds R&D or facility upgrades, and provides a cushion against competitive pricing pressure over the medium term.

Negative Factors

Declining operating and free cash flow

A falling operating cash flow and reduced free cash flow weaken internal funding for trials and platform expansion. Over months this constrains investment in capacity, may force external financing or slower growth, and reduces the firm's resilience to uneven contract receipts.

Weak recent revenue and EPS trends

Significant negative revenue and EPS growth indicate demand or execution headwinds rather than short-term volatility. Persisting declines over quarters would erode operating leverage, limit reinvestment ability, and challenge the company’s capacity to scale its platform and sustain margins long term.

Revenue lability from contract and milestone structure

Heavy reliance on fixed-price contracts and milestone payments creates lumpy revenue and cash receipts. This structural seasonality complicates capacity utilization, budgeting and long-term forecasting, increasing the risk of idle capacity or funding gaps between major client milestones.

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: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 6.03, above the 50-day MA of 5.94, and below the 200-day MA of 9.49, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 66.69 is Neutral, 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	73 Outperform	£41.22M	7.69	―	2.94%	11.92%	-33.76%
IXI	58 Neutral	£10.43M	-6.05	-15.57%	―	13.32%	55.07%
APTA	52 Neutral	£23.60M	-6.25	-213.66%	―	39.88%	81.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FAB	44 Neutral	£16.88M	-9.38	-164.37%	―	-11.43%	23.40%
AVCT	42 Neutral	£225.26M	―	―	―	―	―
OBD	38 Underperform	£11.80M	-0.29	-407.49%	―	72.17%	79.03%

Open Orphan Plc Corporate Events

hVIVO Beats EBITDA Guidance as Acquisitions Cement Full-Service CRO Platform

hVIVO reported that 2025 revenue is expected to come in at about £46.7 million, in line with guidance but down from the prior year, while delivering a better-than-anticipated low single-digit positive adjusted EBITDA margin and maintaining a debt-free balance sheet with £14.3 million in cash, despite significant outlays on acquisitions. Management said the completed integration of CRS Mannheim & Kiel and Cryostore has transformed the group into an integrated, four-line service platform spanning consulting, clinical trials, human challenge trials and laboratory services, broadening its therapeutic reach beyond infectious diseases into cardiometabolic, respiratory and immunology, and underpinning reiterated guidance for high single-digit revenue growth in 2026 amid an improving pipeline and signs of recovery in the infectious disease market.

The most recent analyst rating on (GB:HVO) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

hVIVO Sets Date for 2025 Trading Update and Investor Presentation

hVIVO plc has announced that it will release a trading update for the year ended 31 December 2025 on 29 January 2026, signalling upcoming visibility on its recent financial and operational performance. The company will host a live investor presentation on the same day via the Investor Meet Company platform, open to existing and potential shareholders, underscoring its efforts to maintain active engagement with the market and enhance transparency around its growth trajectory in the human challenge trials and early-phase clinical research space.

The most recent analyst rating on (GB:HVO) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

hVIVO Bolsters Board with Appointment of Richard Cotton as Non-Executive Director

hVIVO plc has appointed Richard Cotton as Independent Non-Executive Director, enhancing its board with his extensive financial and life sciences expertise. Cotton’s broad experience in financial leadership and governance within life sciences and other industries, including roles at prominent institutions, positions him to strengthen hVIVO’s strategic initiatives, further cementing its global leadership in the human challenge trial industry and advancing its growth ambitions.

The most recent analyst rating on (GB:HVO) stock is a Buy with a £5.50 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

hVIVO Leadership Increases Stake, Signaling Confidence in Growth

hVIVO plc announced that its CEO, Yamin ‘Mo’ Khan, and CFO, Stephen Pinkerton, have purchased additional shares in the company, reflecting their confidence in its future prospects. This move is likely to strengthen investor confidence and may positively impact the company’s market perception, as it demonstrates strong leadership commitment and belief in the company’s growth trajectory.

The most recent analyst rating on (GB:HVO) stock is a Buy with a £5.50 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

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.

The most recent analyst rating on (GB:HVO) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

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.

The most recent analyst rating on (GB:HVO) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

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.

The most recent analyst rating on (GB:HVO) stock is a Hold with a £7.00 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

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.

The most recent analyst rating on (GB:HVO) stock is a Hold with a £7.50 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.

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.

The most recent analyst rating on (GB:HVO) stock is a Hold with a £7.50 price target. To see the full list of analyst forecasts on Open Orphan Plc stock, see the GB:HVO Stock Forecast page.