hVIVO expands with German units acquisition for €10m

LONDON - hVIVO plc, a leading early-stage Contract Research Organisation (CRO) known for its human challenge clinical trials, has acquired two Clinical Research Units (CRUs) from CRS Clinical Research Services Management GmbH for €10.0 million in cash. The purchase, funded by hVIVO’s existing cash reserves, marks the company’s first step in its merger and acquisition strategy and diversifies its service capabilities, particularly in in-patient Phase I and Phase II trials.

CRS, a German full-service early-phase CRO, has a history of conducting over 260 trials with more than 7,700 participants in the past six years. The acquisition includes CRS’s Mannheim and Kiel units, which together provide 120 beds, with Mannheim being one of Germany’s largest clinical trial facilities. CRS’s Berlin site will remain independent, serving as hVIVO’s preferred partner for specialized clinical trials.

The transaction is expected to be earnings accretive in 2026, following an investment and restructuring program. The two units reported unaudited revenues of €19.9 million for the year ended 31 December 2024, an increase from €18.6 million in 2023. hVIVO’s full-year revenue guidance for 2025 is £73 million, with EBITDA margins anticipated in the mid-high teens, excluding one-off costs.

hVIVO’s acquisition aims to strengthen its service offering with the addition of CRS’s expertise in cardiometabolic and immunology/inflammation trials, as well as trials involving renal and hepatic impaired patients. The integration of CRS is expected to bring cross-selling opportunities, a broader client base, and more diverse revenue streams. The combined Group’s weighted contracted orderbook stood at £67 million as of 31 December 2024, not including the recent pivotal Phase 3 HCT for ILiAD Biotechnologies.

The current CRS leadership team will continue in their roles, working alongside hVIVO to implement growth initiatives. The Company expects the integration to yield strong revenue growth and a significant improvement in EBITDA margins by 2026.

hVIVO’s CEO, Yamin ’Mo’ Khan, expressed confidence in the acquisition, citing the potential for significant synergies and growth opportunities. Dr. Elisabeth Lackner, CEO of CRS, echoed this sentiment, highlighting the mutual benefits of the combined expertise and infrastructures.

This strategic move is part of hVIVO’s aim to achieve a £100 million Group revenue target by 2028, with further small bolt-on acquisitions being considered. The information provided is based on a press release statement.

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