Revenues at Open Orphan grew 76 per cent last year in what the company described as a “milestone” year for the specialist contract research organisation.
The company said it achieved revenues of £39 million in 2021, up from £22.2 million in the prior year as it delivered a strong and growing pipeline of new challenge study contract wins. Earnings before interest, tax, depreciation and amortisation (Ebitda) were £2.9 million, swinging from a loss of £6.1 million in 2020. Open Orphan said cash and cash equivalents at the end of the year were £15.7 million, down from £19.2 million at the end of the previous year.
Earnings per share improved from -1.80 pence to -0.01 pence.
The company said it had a growing base of more than 60 clients and had substantially expanded into the respiratory market, signing an asthma study with a top-three global pharma company. It also completed the world’s first Covid-19 characterisation study and signed a contract to manufacture a Delta variant challenge agent with Imperial College London.
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“[Last year] was a milestone year for Open Orphan; the group achieved record revenues, and recorded full year Ebitda-profitability for the first time — a significant turning point for the business,” said chief executive Yamin “Mo” Khan, who was appointed to the role in February. “The group won a record number of human challenge study contracts, serving four of the top 10 global biopharma companies and more than 60 clients in total. We were proud to make a significant contribution to the UK government’s response to the pandemic by completing the world’s first Covid-19 characterisation study, which furthered our understanding of Covid-19 disease progression. Importantly, the group accomplished this while investing in operational improvements, with volunteer screening and quarantine capacities expanded during the year.”
The group said momentum had continued into 2022, with a strong start to trading and significant contract wins, including a £7.3m influenza challenge trial and £5m RSV challenge trial. By the start of June, Open Orphan had an order book of signed contracts worth £64.2 million, which is expected to be recognised across 2022-2024.
“We increased our bed count from 43 to 62, doubled our volunteer screening capacity and also expanded the scope of our business to offer additional clinical trial services, where we have already signed our first contracts, establishing new revenue streams for the business,” Mr Khan said. “We also launched our new Malaria Human Challenge Model, which I believe has further consolidated our position as the leading provider of human challenge trials in infectious and respiratory disease. In my new role as CEO, I look forward to driving further growth across the business this year and converting this substantial progress into value for our shareholders.”
Looking ahead, Open Orphan said it expected to achieve revenues of about £50 million this year, and it had a number of further challenge study opportunities at advanced negotiations across influenza, asthma, RSV, malaria and Covid-19.
