Following the Open Orphan plc (LON:ORPH) trading update we caught up with Arden Partners Head of Research Andrew Simms for his thoughts.
Open Orphan has released a trading update for the full year 2021, what were the key highlights?
The trading update for the 2021 full year indicated trading in line with management expectations and guidance. In addition, 2022 is expected to be inline with management expectations. Considering the nature of the Group’s business and visibility over 2022 forecasts in a structurally growing and non-economically sensitive industry, this is encouraging. The announcement of expansion in patient screening also frees up capacity to expand services and better manage facilities to support efficiency improvements over time.
How do you view the company outlook?
Previous comments from the Company indicated that 95% of 2022 forecasted contracts had been signed. FY22 numbers are well underpinned and further growth in the pipeline from what is a very active vaccine development market and resulting pipeline conversion over the next 3-6 months supports the Company’s outlook.
In terms of an investment how do you view the company?
The stock’s recent underperformance of the market does not reflect the Group’s infectious disease research and development exposure and potential improving consistency, recurring revenue and margin improvements. Possible monetisation of non-core assets also provides further potential catalysts and returns for investors.
Open Orphan plc (LON: ORPH) is a rapidly growing niche CRO pharmaceutical services company which is a world leader in the testing of vaccines and antivirals through the use of human challenge clinical trials.
Open Orphan comprises of two commercial specialist CRO services businesses; hVIVO and Venn Life Sciences.
