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Highlights
- hVIVO acquires two German clinical research units from CRS for €10 million in cash.
- Expands services to include Phase I and II trials across multiple therapeutic areas.
- Strengthens European presence with 120-bed capacity across two sites in Germany.
- Acquisition expected to be earnings accretive by 2026.
hVIVO plc (LSE:HVO), a leading specialist in early-stage clinical development, has announced the acquisition of two clinical research units from Germany-based CRS for €10 million. The move marks hVIVO’s first M&A deal, aligning with its growth strategy to expand its service offerings beyond human challenge trials.
The acquired facilities will allow hVIVO to conduct in-patient Phase I and II trials across a broader range of therapeutic areas, strengthening its position as a full-service clinical research organization (CRO) in Europe.
Financial and Operational Impact
- The acquired research units generated €19.9 million in revenue in 2024 and €18.6 million in 2023.
- hVIVO expects the acquisition to contribute positively to earnings by 2026.
- The company’s contracted orderbook grew to £67 million as of December 31, 2024, following a record-breaking £62.7 million revenue in 2024.
Strong Growth Outlook for 2025 and 2026
hVIVO has provided a bullish revenue outlook, expecting £73 million in revenue for 2025, with EBITDA margins projected in the mid-to-high teens (excluding one-off costs). Looking ahead to 2026, the company anticipates strong revenue growth and significant improvements in EBITDA margins as the benefits of the acquisition materialize.
With this expansion, hVIVO is poised to broaden its clinical trial capabilities, solidify its leadership in early-stage drug development, and drive sustainable long-term growth in the CRO market.
