REG - hVIVO PLC - Acquisition of Cryostore for up to £3.2m

hVIVOAnnouncement

27/02/2025 07:15

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RNS Number : 6192Y  hVIVO PLC  27 February 2025

hVIVO plc

("hVIVO", the "Company" or the "Group")

 

Acquisition of Cryostore for up to £3.2 million

 

Immediately earnings enhancing acquisition of bio-storage supplier

 

hVIVO plc (AIM: HVO), a fast-growing early-stage Contract Research
Organisation ("CRO") and the world leader in human challenge clinical trials,
announces that it has acquired Cryo-Store Limited (https://cryostore.co.uk/)
("Cryostore" or the "Acquisition"), a specialist provider of high industry
standard, temperature-controlled storage solutions for biological and clinical
materials. The Acquisition has been completed for consideration of up to £3.2
million, comprising £2.7 million funded from the Group's existing cash
resources and up to £0.5 million in equity subject to certain terms.

 

Strategic rationale and acquisition details

 

Established in 1999, Cryostore provides off-site, temperature-controlled
storage for global pharmaceutical, biotechnology, CRO and academic research
clients. Located in Greenwich, London, the facility houses 32 freezers across
approximately 2,800 square feet, with scope for future expansion. Cryostore
operates to the highest industry standards, and is GMP & GDP* compliant,
ensuring the integrity and security of biological samples and pharmaceutical
agents. The facility is Human Tissue Authority licensed, holds a home
office-controlled drugs licence, is approved for GMO* storage, and capable of
securely storing materials of up to Biohazard Category 3. Cryostore is
recognised as a high-quality partner for the biopharma industry, which
requires stringent, regulatory-compliant storage to safeguard research and
clinical samples. Although clinical sample storage timelines may vary, they
are typically kept until the study is reported or until the product receives
market authorisation, which can range from 2-15 years post-study.
Additionally, some companies opt for indefinite storage to support future
research initiatives.

 

The Acquisition provides cross-selling opportunities, expanding hVIVO's client
base and further diversifies the Group's revenue streams. In 2024, Cryostore
provided storage solutions to 37 clients, with 97% repeat business and an
average client tenure of c.9 years. hVIVO has worked with Cryostore for more
than 20 years, and in 2024 hVIVO represented c.16% of Cryostore's total
revenue. In addition to the organic growth opportunity from owning Cryostore,
the Company anticipates reducing costs and retaining greater margin within the
Group. In addition, Cryostore's services will complement and enhance hVIVO's
growing hLAB and biobank offering, as the Group currently holds over 500,000
samples in its biobank, and processes more than 85,000 samples per year. As
the Group's standalone lab services, field study offering, and HCT business
continues to grow, this ancillary service will further support the future
growth of the business whilst adding an additional revenue and profit stream.

 

Cryostore's management will continue in their current roles to ensure
continuity and smooth integration.

 

Trading history and outlook

 

Cryostore has a long history of delivering consistent year-on-year revenue
growth and recorded unaudited revenues of £0.89 million in the financial year
ended 31 December 2024 (£0.81 million in 2023), with an EBITDA of £0.52
million (£0.54 million in 2023) and is debt free. Cryostore has net assets of
£0.84 million.

 

Equity consideration

 

Under the terms of the Acquisition, three managers of Cryostore will be issued
up to 2,773,982 ordinary shares of 1p each in hVIVO ('Consideration Shares')
with an aggregate value of up to £0.5 million at the average closing share
price for the ten days prior to 24 February 2024.

 

1,386,991 of the Consideration Shares (being 50%) will be allotted on the
12-month anniversary of completion with 1,386,991 of the Consideration Shares
(being 50%) being allotted on the second anniversary of the Acquisition,
subject to the individuals remaining in service of the Group at the time of
the allotments.

 

Yamin 'Mo' Khan, Chief Executive Officer of hVIVO plc, said: "We are delighted
to welcome Cryostore to the hVIVO Group. This acquisition represents a
strategic step forward in expanding our hLAB and biobank service offering by
providing high-quality, temperature-controlled storage solutions for the
biopharma industry. We have worked with Cryostore for over 20 years and
recognise its reputation as a high-quality partner, as evidenced by an
impressive list of multi-year tenure biopharma clients. With a proven track
record of consistent revenue growth, strong client retention, and increasing
industry demand, bringing this business in-house will allow us to drive
efficiencies, expand our customer base, and support our long-term growth
strategy."

 

Malcolm Wilkinson, General Manager of Cryostore, said: "Joining the hVIVO
Group is an exciting progression for Cryostore. We share a strong commitment
to quality, regulatory excellence, and customer service, and this acquisition
allows us to leverage hVIVO's global reach and resources to enhance the
offering to our global client base. Our long-standing relationship with hVIVO
has demonstrated our alignment in values and operational excellence, and we
look forward to continuing to provide best-in-class storage solution as part
of the hVIVO group."

 

* GMP - Good Manufacturing Practice, GDP - Good Distribution Practice, GLP -
Good Laboratory Practice, GMO - Genetically Modified Organisms

 

For further information please contact:

 

 hVIVO plc                                       +44 (0)20 7756 1300
 Yamin 'Mo' Khan, Chief Executive Officer

 Stephen Pinkerton, Chief Financial Officer

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)                  +44 (0)20 7220 0500
 Geoff Nash, Camilla Hume, Harriet Ward

 Nigel Birks - Life Science Specialist Sales

 Louise Talbot - Sales

 Peel Hunt LLP (Joint Broker)                                        +44 (0)20 7418 8900
 James Steel, Dr Christopher Golden

 Davy (Joint Broker)                                                 +353 (0) 1 679 6363
 Anthony Farrell, Niall Gilchrist

 Walbrook PR (Financial PR & IR)                 +44 (0)20 7933 8780 or hvivo@walbrookpr.com

 Paul McManus / Phillip Marriage /               +44 (0)7980 541 893 / +44 (0)7867 984 082 /

Louis Ashe-Jepson
+44 (0)7747 515 393

 

 

 

Notes to Editors

 

hVIVO plc (https://hvivo.com/) (Ticker: HVO) is a rapidly growing early-stage
Contract Research Organisation (CRO) and the global leader in human challenge
trials. The company delivers end-to-end clinical development services to a
diverse and expanding client base, including seven of the world's ten largest
biopharma companies.

 

hVIVO specialises in conducting human challenge trials across multiple
infectious and respiratory indications, leveraging its state-of-the-art
quarantine facility in London-the largest of its kind worldwide. The company
also offers comprehensive virology and immunology laboratory services under
the hLAB (https://hlabservices.com/) brand.

 

Through its German subsidiary, CRS (https://crs-earlyphase.com/) , hVIVO
operates a 120-bed capacity across Mannheim and Kiel, providing early-phase
clinical trial services, including first-in-human and proof-of-concept
studies. Its second subsidiary, Venn Life Sciences
(https://www.vennlifesciences.com/) , offers Early Drug Development Consulting
and Biometry services to the biopharma sector.

 

The Group provides fully integrated drug development solutions from
preclinical stages through Phase II trials, alongside patient recruitment via
FluCamp (https://flucamp.com/) . Additionally, its five clinical sites support
outpatient Phase II and III trials, ensuring a seamless and efficient pathway
from discovery to late-stage development.

 

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