6th Mar 2020 11:57
(Alliance News) - Open Orphan PLC on Friday said it has signed a new respiratory syncytial virus study contract worth an initial GBP3.2 million in revenue, with a possible further GBP7 million on the cards.
Open Orphan said it signed the deal with an undisclosed "European biotech company". Open Orphan is a pharmaceutical services firm and provides virology and vaccine challenge study services. A challenge study is when healthy volunteers are deliberately exposed to an infectious disease.
In this case, the challenge study involves RSV, a highly contagious viral disease and among the most common causes of pneumonia and bronchiolitis. In both the US and worldwide, RSV is the number one cause of hospitalisation in childhood and most children will be infected at least once by the time they are two or three years old.
RSV is especially dangerous in premature babies, as well as children with additional health conditions and elderly patients, and has no currently approved vaccine.
The study will deliver an expected GBP3.2 million of revenue, which is forecast to be entirely recognised in 2020. Should the study prove successful, another follow-on larger pivotal challenge study will begin in the fourth quarter of 2020, "delivering significant further revenue and expected to be a minimum of GBP7 million".
Open Orphan Chief Executive Trevor Phillips said: "This agreement continues to endorse the importance being placed on the use of viral challenge models supporting product development for companies developing antivirals, vaccines and respiratory therapeutics. This agreement is the first agreement utilising what is now, a broader and complementary in-house service offering.
"All aspects of the study will be conducted within Open Orphan, leading to the elimination of sub-contractor costs and retain more contracted revenue. We look forward to delivering the work for a European biotech company and further developing our relationship."
The deal is Open Orphan's first use of clinical research services provided by hVIVO PLC, which was acquired in January.
Shares in Open Orphan were down 0.6% at 5.74 pence in London on Friday morning.
By Anna Farley; [email protected]
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