Revenue at Irish clinical trials company Hvivo fell in the first six months of the year as the uncertainty in the pharma market, particularly in the US, hit contracts.
But the company remained on track to reach £47 million in revenue for the year, it said.
In a trading update for the six months ended June 30th 2025, the company said revenue for the period was £24.2 million, down from £35.6 million a year earlier.
Hvivo, which offers contract research to pharmaceutical companies, said in May that a significant contract for a human challenge trial had been cancelled, while another had been postponed. A smaller study had also been cancelled, the company said, blaming the uncertainty in the pharmaceutical sector and depressed financing for the biotech market.
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Its weighted contracted order book was £40 million at the end of the first half, down from £71 million in the prior year.
However, the company said it had a strong sales pipeline, with opportunities that were not yet contracted and the aggregate value of customer proposals submitted in the first half of the year already surpassing the total in 2024. Its acquisitions of CRS and Cryostore, which were completed for £10.5 million net of cash acquired, are also diversifying its offerings. The acquisitions contributed £5.5 million to group revenue in the first half.
The group said it is in advance discussions for a number of major human challenge trial projectsand is also pursuing significant opportunities for its hLAB and clinical services operations.
“Some persistent macro and sector-specific headwinds remain however, including a subdued biotech funding environment partly connected to uncertainties in the US, which have impacted the broader CRO industry, resulting in delayed contract conversion and a number of cancellations and postponements,” Hvivo said in a statement.
It said the issues affecting the sector are likely to the “transitory rather than fundamental”, and predicted its business would return to growth as the market normalises, and biotech funding improves.
“The utility of our services remains strong, as demonstrated by the recent success of our client’s Phase II candidate. Our diversification strategy is already delivering results, and we expect continued momentum across all revenue streams,” said chief executive Dr Yamin “Mo” Khan.
“While macroeconomic and sector-specific headwinds are still affecting contract conversions, we remain confident in the long-term growth trajectory of our services and the overall prospects for HVIVO. I’m encouraged by the strength of our sales pipeline, with several major opportunities that could enhance the growth of our services. We believe that we are well positioned to deliver growth in FY26, and we look forward to keeping shareholders updated on our progress.”
