Irish-run Open Orphan reports strong growth as revenue rises

Cash and cash equivalents for the group were £15.7m by the end of 2021, a decline from £19.2m by the end of 2020.

Dublin-based pharmaceutical services firm Open Orphan recorded revenues of £39m during the 2021 financial year, it announced today.

The firm saw its revenue increase by 76%, from £22.2m in 2020.

Open Orphan also reported full-year EBITDA profitability for the first time. Earnings before interest, tax, depreciation and amortisation stood at £2.9m, up from a loss of £6.1m the previous year.

Cash and cash equivalents for the group were £15.7m by the end of 2021, a decline from £19.2m by the end of 2020. 

The strong revenue reported was driven by an increase in order book growth of 11% to £46m future contracted revenue as of 31 December 2021, up from £41.6m in 2020. 

The order book of signed contracts for Open Orphan is worth £64.2m, as of 1 June 2022, and is expected to be recognised across 2022, 2023 and 2024.

Shares in the firm were up at the end of 2021 to 0.01p per share, an increase from -1.80p the previous year.

Open Orphan has grown its client base in recent years to over 60 clients, with the company reporting that it served four of the top 10 global biopharma companies last year.

As part of the efforts to tackle Covid-19, the pharmaceutical firm completed the world's first Covid-19 characterisation study. Contract signed to manufacture a SARS-CoV-2 Delta variant challenge agent with Imperial College London.

Yamin 'Mo' Khan, Chief Executive Officer, Open Orphan, said: "2021 was a milestone year for Open Orphan; the Group achieved record revenues, and recorded full-year EBITDA-profitability for the first time - a significant turning point for the business.

"Post-period end, we have continued our momentum from 2021 into a strong start to trading and significant contract wins. We increased our bed count from 43 to 62, doubled our volunteer screening capacity, and also expanded the scope of our business to offer additional clinical trial services, where we have already signed our first contracts, establishing new revenue streams for the business. 

"We also launched our new Malaria Human Challenge Model, which I believe has further consolidated our position as the leading provider of human challenge trials in infectious and respiratory disease. In my new role as CEO, I look forward to driving further growth across the business this year and converting this substantial progress into value for our shareholders," he added.

Open Orphan expects to increase revenue to £50m by the end of 2022. The firm said the rising revenue is driven by developments in the firm's contracts and expanding business.