Open Orphan lining up for role in coronavirus fight - Amazon S3
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Open Orphan
Open Orphan
lining up for role in
coronavirus fight
www.openorphan.com
AIM-listed Open Orphan in virology including diseases
(ORPH:AIM) is lined up for a
role in the global fight against
INTRODUCING… such as MERS, SARS and
Coronavirus. Open Orphan
coronavirus. Following the
acquisition of hVIVO the
OPEN ORPHAN has also appointed him as
chairman of its new Scientific
company is a world leader A RAPIDLY GROWING Advisory Board alongside
in the provision of virology
and vaccine challenge study
SPECIALIST CRO Chairman Professor Brendan
Buckley, co-founder and
services and viral laboratory PHARMACEUTICAL SERVICES director.
services. It has Europe’s only The company has a world
24-bedroom quarantine clinic COMPANY WHICH HAS A leading portfolio of eight viral
with onsite virology lab in FOCUS ON ORPHAN DRUGS challenge study models which
Queen Mary’s Hospital London. are: two flu, two RSV, two
hVIVO supports product HRV, one asthma, one cough
development for customers the virus, Open Orphan has and one chronic constructive
developing antivirals, vaccines appointed Professor John pulmonary disease viral
and respiratory therapeutics, Oxford, as a consultant and challenge models. No other
all particularly relevant and advisor to the company. company in the world has
topical in the environment of Professor Oxford was also such a portfolio, with only two
heightened awareness of the the original founder of hVIVO competitors globally having
Coronavirus in 2020. but left five years ago. He is one model each.
Founded in 2017, Open a professor at Queen Mary’s The company also has a 49%
Orphan, run by a management University London and one stake in Imutex Ltd JV which
team with extensive industry of the world’s leading experts has developed a universal flu
and financial expertise,
completed its IPO on the
28 June 2019 through a
reverse takeover of Venn Life
Sciences and more recently,
the company completed the
successful acquisition of hVIVO
on January 20 2020. In addition
to AIM, the company is listed
on Dublin Euronext.
RESPONDING TO
CORONAVIRUS
With its capabilities, hVIVO
is positioned to aid in the
development in the cure for
Coronavirus. In response to
February 2020 Spotlight company profile kindly reproduced with permission from Shares magazine – www.sharesmagazine.co.uk
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Open Orphan
vaccine, which has successfully
completed all phase II trial
studies. In the coming months,
the Open Orphan team hope
to get approval from the FDA
to start a final Phase III trial.
But the group won’t be
making any further capital
investment into the product
as the intent is to license
phase III out to a big pharma.
The team is very optimistic as
to the potential to monetise
these assets and generate
further revenue. Should it be
successful, Open Orphan will
get milestone payments and
royalties going forward. the way to regulatory services HOW THE COMBINATION
due to existing capabilities of OF OPEN ORPHAN AND
HOW THE COMBINATION OF the Open Orphan and Venn HVIVO IS BUILDING ITS
OPEN ORPHAN AND HVIVO team. Therefore, the company GENOMIC DATABASE
CREATES HIGHER VALUE will have the ability to sign Open Orphan is developing
LONGER-TERM CONTRACTS longer contracts with greater one of Europe’s largest
Prior to the acquisition of revenue generation. genomic databases of rare
hVIVO by Open Orphan, hVIVO For the first time in hVIVO’s disease patients capturing
was only able to conduct history, it is now pitching for valuable genetic data
challenge studies and lab both challenge studies and from patient populations
services. This meant that the natural, much higher value with specific diseases with
despite hVIVO engaging in follow on phase II field trial designated orphan drug
recurring discussions of pre- study using the Open Orphan status and incorporating AI
clinical, Phase I and Phase II expertise and capability. tools.
trials with clients, they did not hVIVO is now using Open
have the capacity or expertise Orphan’s Data Management,
to undertake them. Medical Writing, and Statistical
Post-acquisition, the capability in all of its customer
combined business can
provide the complete gamut
proposals and even prior to
completion of the transaction
‘WELL POSITIONED
of services from chemistry,
manufacturing, control, to
three joint customer proposals
had been made by the
TO OFFER SERVICES
Phase I and Phase II trials, all company. AND HELP TO THE
COMPANIES WORKING
ON SOLUTIONS TO
THE CORONAVIRUS
EPIDEMIC.’
– CATHAL FRIEL,
EXECUTIVE CHAIRMAN,
OPEN ORPHAN
February 2020 Spotlight company profile kindly reproduced with permission from Shares magazine – www.sharesmagazine.co.uk
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Open Orphan
Additionally, hVIVO has an action at hVIVO to deliver
extensive genomic database savings of £11m in two years.
with patient data that they
have full rights to. Since the REASONS TO INVEST
acquisition of hVIVO, this The management team of
database with three decades Open Orphan have a large
worth of data is being added amount of cash invested and
to the Open Orphan genomic in turn have a large equity
database. position in the company
and as such are aligned with
VALUING THE COMBINED shareholder interests.
GROUP Open Orphan acquired both
Since its IPO in June 2019, Venn Life Sciences and hVIVO
Open Orphan has acquired at what it considers to be
two business, Venn Life attractive valuations. In hVIVO
Sciences and more recently alone, there had been £113m
hVIVO in January 2020. The invested in the last six years
company is currently valued and Open Orphan acquired it
by the market at 1x its sales. fundraise of £2.5m without for £13m.
Most of its profitable peers in charging a fee. hVIVO has a 24-bed
the pharma services sector In addition to that he quarantine clinic which
trade at 3x sales. invested another £300k is valued at an estimated
With the synergies at the placing price of 6.1p £25m. Additionally, the onsite
programme in place to after the January 2020 viral laboratory is valued at
deliver cost savings of up to fundraise following the about £7m and the eight
£3.1m in FY2020, increasing acquisition of hVIVO as a viral challenge study models
to £4.4m in FY2021 combined clear demonstration of his are estimated to be valued
with the potential for longer commitment and belief in at another £25m. No other
term, larger value contracts, the plans he and the team challenge study provider
the group believes it is on has for Open Orphan. in the world has such a
track to be profitable in the At the IPO which comprehensive portfolio
coming months. completed on 28 June 2019, The management team
Open Orphan Plc raised at Open Orphan have a
TRACK RECORD OF £4.5m in fresh equity at clear growth strategy to
DELIVERY 5.6p per share, the vast create a highly specialised
The management team of majority of which came from differentiated service provider
Open Orphan has a track institutional shareholders. for the pharma industry
record of success. Executive Following the acquisition of and will continue to take
chairman, Cathal Friel, set up hVIVO, Trevor Phillips and Tim advantage of the fragmented
Amryt Pharma (AMYT:AIM) Sharpington have become marketplace in Europe.
five years ago and in 2019 CEO and COO, respectively, The combined businesses
Amryt had a sales revenue of the enlarged group, with will deliver cost synergies
of $150m and an enterprise Michael Meade joining as through the combination
value of £450m which an additional non-executive of two listed businesses and
encompasses a market cap director. will create revenue growth
of £200m and £250m in Tim and Trevor joined opportunities through
performing bonds. hViVO 18 months ago and expanding its capabilities.
Just over two years ago had started the process of
Cathal stepped down transforming the company 9
from the board of Amryt by slashing overheads and OPEN ORPHAN
Pharma to establish Open taken £11m of annualised 7
Orphan. To date, Friel has costs out of the business. The 5
personally invested close to refreshed management and
£2m in Open Orphan Plc. board have experience and 3
In the current placing he track record of restructuring 2019 2020
underwrote the minimum businesses having taken
February 2020 Spotlight company profile kindly reproduced with permission from Shares magazine – www.sharesmagazine.co.uk
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