Name: Open Orphan's spinout business model
Uploaded: 2023-01-19T19:09:04.909334+00:00
Duration: 1176 s
Channel: Master Investor
Description: Open Orphan completed an important spinout with Poolbeg Pharma in 2021, and continues to actively look at monetising the assets on its balance sheets over time.

Open Orphan completed an important spinout with Poolbeg Pharma in 2021, and continues to actively look at monetising the assets on its balance sheets over time.

Open Orphan completed an important spinout with Poolbeg Pharma in 2021, and continues to actively look at monetising the assets on its balance sheets over time.

https://d3ev5earl6dvd0.cloudfront.net/public-media/videos/004/115/004115/video_oCF1nZ1.mov#t=694

Master Investor

Open Orphan's spinout business model

About Open Orphan

Open Orphan's business structure

Open Orphan's growth prospects

Open Orphan's capacity in light of future growth

Open Orphan's measures for a sustainable performance

Open Orphan's management style

Open Orphan's recruitment of leadership team and patients

Open Orphan's major concerns

Open Orphan PLC (AIM:ORPH) was the first contract research organisation (CRO) to conduct a Covid challenge trial, and in the words of chief executive Yamin 'Mo' Khan, it now has approximately 90% of the market in challenge studies whereby "we inoculate each healthy volunteer with a virus and then we test the drug under quarantine conditions."
 
That’s a unique USP, and Mo talks about how the business has divested into new streams of revenue such as offering clinical site services to customers, and challenge models including asthma and malaria.
 
The last set of results showed a 76% increase in revenue and almost a £9 million swing on EBITDA, and chief financial officer Leo Toole says "we see strong potential to continue that kind of growth into future periods with the company aiming to deliver double digit EBITDA percentage points in terms of revenue and profitability."
 
Toole says booking off revenue for 2023 is almost finished, and the planning horizon is now stretching into 2024.
 
Both he and Khan are frustrated with the share price particularly as the backlog order book is worth approximately £65 million pounds which is close to the company’s current (June 2022) market cap. Khan concludes that "as we continue to grow and we build we’ll see a much stronger future and a much improved share price."

Open Orphan PLC (AIM:ORPH) was the first contract research organisation (CRO) to conduct a Covid challenge trial, and in the words of chief executive Yamin 'Mo' Khan, it now has approximately 90% of the market in challenge studies whereby "we inoculate each healthy volunteer with a virus and then we test the drug under quarantine conditions." That’s a unique USP, and Mo talks about how the business has divested into new streams of revenue such as offering clinical site services to customers, and challenge models including asthma and malaria. The last set of results showed a 76% increase in revenue and almost a £9 million swing on EBITDA, and chief financial officer Leo Toole says "we see strong potential to continue that kind of growth into future periods with the company aiming to deliver double digit EBITDA percentage points in terms of revenue and profitability." Toole says booking off revenue for 2023 is almost finished, and the planning horizon is now stretching into 2024. Both he and Khan are frustrated with the share price particularly as the backlog order book is worth approximately £65 million pounds which is close to the company’s current (June 2022) market cap. Khan concludes that "as we continue to grow and we build we’ll see a much stronger future and a much improved share price."

https://d3ev5earl6dvd0.cloudfront.net/public-media/videos/004/115/004115/video_oCF1nZ1.mov

Sarah Lowther talks to Open Orphan CEO Yamin 'Mo' Khan as well as CFO Leo Toole about their organisation's future. Open Orphan is a specialist contract research organisation testing infectious and respiratory disease products using human challenge clinical trials. The market cap as of the end of June 2022 was £74 million.

Open Orphan in its current structure arose out hVIVO (previously Retroscreen), and Venn Life Sciences. These three companies allow Open Orphan Group to offer full-service, end to end clinical trial services to its clients.

After record revenues representing 76% growth, Open Orphan expects to hit revenues of £15 million in 2022. The company has diversified into new streams of revenues, including new service lines (clinical site services, laboratory services) and new challenge models (asthma trial, malaria model).

Open Orphan does not expect any capacity constraints that may arise out of the company's strong growth. The company has previously established a new quarantine facility within a four-month period, whereas new studies usually require around five to six months lead time before they go to quarantine.

After the £15 million revenues expected for 2022, Open Orphan sees strong potential to continue its growth in subsequent years. To help achieve sustainable performance, the company focusses on driving utilisation and driving productivity in the way it works.

Having taken over as Open Orphans's CEO in early 2022, Yamin 'Mo' Khan describes his initial management style as a blend. Going forward, Mo's focus will be on growing the company both organically and through acquisitions.

CEO Yamin 'Mo' Khan considers Open Orphan's management as complete and is very satisfied with the team. Recruitment of patients (healthy volunteers) remains a key challenge across the pharma sector, but Open Orphan has put several initiatives in place to help expand its reach.

For CFO Leo Toole, main concerns include having good planning in place, a solid sales pipeline, as well as solid execution plans. The future focus for Open Orphan lies on delivering with excellence, and expanding the company's planning horizon to enable growth in 2024.