hVIVO plc Trading Update (3908C)
13 Avril 2017 - 8:00AM
UK Regulatory
TIDMHVO
RNS Number : 3908C
hVIVO plc
13 April 2017
For immediate release 7.00am: 13 April 2017
HVIVO PLC
("hVIVO" or the "Company")
Trading Update
hVIVO plc (AIM: HVO), a specialty biopharma company with
clinical testing capabilities, announces a trading update regarding
the accounting treatment of the Company's joint venture investment
in Imutex Limited ("Imutex"). This reverses the change in
accounting treatment for Imutex announced on 21 September 2016 and
returns to the original position announced on 22 April 2016 to
recognise the GBP5.5 million FLU-v Phase IIa clinical study as
revenue as the work is completed.
This aligns and makes consistent the accounting treatment of
hVIVO's equity investments in PrEP Biopharm Limited ("PrEP") and
Imutex. It is only a revenue measurement and presentation
difference for Imutex with no net effect to hVIVO's financials, no
change in underlying economic value, no change in net income and no
cash flow impact. Accordingly, hVIVO's revenue expectation for the
year ended 31 December 2016 increases for the revenue from the
FLU-v clinical study.
On 22 April 2016 hVIVO announced its joint venture investment in
Imutex with the SEEK Group ("SEEK") to develop vaccines against
influenza (flu) and mosquito-borne diseases like Zika. hVIVO
acquired a 49% equity stake in Imutex for GBP7.0 million in
consideration and SEEK contracted with hVIVO Services Limited to
conduct a FLU-v Phase IIa clinical study for GBP5.5 million.
Following the appointment of Ernst & Young LLP ("EY") as the
Company's auditor on 28 December 2016, and as part of its maiden
audit, EY conducted a detailed review of the accounting judgements
and treatment of the Company's equity investments in PrEP and
Imutex, which has led to this change in accounting treatment for
Imutex.
The Company will announce its audited preliminary results for
the year ended 31 December 2016 at 7.00am on Thursday 20 April
2017. hVIVO now expects to report revenue for the year ended 31
December 2016 of GBP19.9 million and a gross profit margin of
21.3%. In addition, the Company expects to report cash balances as
at 31 December 2016 of GBP25.7 million.
Kym Denny, Chief Executive Officer, comments, "I look forward to
announcing our 2016 prelims next week and communicating the
significant steps we are making in our quest for precision
medicines in respiratory and infectious disease. I am pleased that
the question regarding accounting treatment of hVIVO's equity
investments has been resolved and that we are able to align the
accounting treatment of the PrEP and Imutex transactions."
For further information please contact:
hVIVO plc +44 207 756 1300
Kym Denny (Chief Executive Officer)
Graham Yeatman (Chief Financial & Business Officer)
Media Enquiries +44 203 021 3933 / +44 7854 979 420
Colin Paterson (Director of Marketing, Communication and Public
Relations)
Numis Securities Limited +44 207 260 1000
Michael Meade / Freddie Barnfield (Nominated Adviser)
James Black / Michael Burke (Corporate Broking)
Notes to Editors:
hVIVO plc ("hVIVO"), a specialty biopharma company with clinical
testing capabilities, is pioneering a human-based analytical
platform to accelerate drug discovery and development in
respiratory and infectious diseases. Leveraging human disease
models in flu, RSV, and asthma exacerbation, the hVIVO platform
captures disease in motion, illuminating the entire disease life
cycle from healthy to sick and back to health. Based in the UK,
market leader hVIVO has conducted more than 45 clinical studies,
inoculated over 2000 volunteers and has three First-In-Class
therapies currently in development with a growing pre-clinical
pipeline.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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