hVIVO expands biopharma capabilities with Cryostore acquisition

hVIVO plc has completed the acquisition of Cryostore Limited, a specialist provider of temperature-controlled storage solutions, in a deal valued at up to £3.2 million. The acquisition expands hVIVO’s capabilities in biopharma sample storage, reinforcing its position as a leading contract research organisation (CRO) specialising in human challenge trials and early-phase clinical research.

The deal, which includes £2.7 million in cash and £0.5 million in equity, aligns with hVIVO’s strategy of enhancing its biobank service offering and securing a more efficient, cost-effective supply chain for its laboratory operations. The acquisition is expected to be immediately earnings accretive, reducing external storage costs while creating new revenue opportunities.

How Will Cryostore Strengthen hVIVO’s Biobank Service Offering?

Cryostore, established in 1999, operates a highly regulated biopharma sample storage facility in London, housing 32 freezers across a 2,800-square-foot site. The company provides off-site, temperature-controlled storage solutions for pharmaceutical, biotechnology, contract research, and academic research clients. Its compliance with Good Manufacturing Practice (GMP), Good Distribution Practice (GDP), and Human Tissue Authority regulations ensures the secure and reliable storage of clinical samples.

hVIVO has long relied on Cryostore’s expertise in clinical sample storage, and bringing the company in-house allows it to scale operations while maintaining strict regulatory standards. The acquisition is expected to enhance hVIVO’s hLAB laboratory services, which process over 85,000 samples per year and hold more than 500,000 samples in its biobank. With increasing demand for long-term sample storage due to regulatory requirements and extended drug development timelines, Cryostore’s integration will provide a competitive advantage in managing biopharma sample storage efficiently.

Why Is Secure Biopharma Sample Storage Essential for Clinical Trials?

The integrity of clinical sample storage plays a crucial role in drug development, as pharmaceutical and biotech companies must maintain biological materials for years to comply with regulatory and research requirements. Samples are typically retained until study results are published or until a product receives market authorisation, which can take between two and 15 years post-study. Some organisations opt for indefinite storage to support long-term research initiatives.

Cryostore’s facility, with its ability to store materials up to Biohazard Category 3, meets the stringent demands of the industry. As the biopharma sample storage market continues to grow, companies with established, GMP-compliant storage solutions will remain critical partners for pharmaceutical innovation. hVIVO’s ownership of Cryostore ensures a reliable storage network for its own research while expanding services for external clients.

What Does the Cryostore Acquisition Mean for hVIVO’s Business Growth?

Cryostore’s acquisition not only secures biopharma sample storage capabilities for hVIVO but also unlocks new business opportunities. In 2024, Cryostore serviced 37 clients, achieving a 97% repeat business rate with an average client tenure of approximately nine years. hVIVO, which previously accounted for around 16% of Cryostore’s revenue, now gains direct access to its established customer base.

By owning Cryostore, hVIVO can offer integrated biobank service offerings alongside its existing clinical development solutions, making it a one-stop partner for drug development firms. Additionally, as demand for field studies and standalone laboratory services increases, Cryostore’s expertise in clinical sample storage will become a valuable asset in ensuring the long-term viability of research samples.

What Are the Financial and Strategic Benefits of the Deal?

Cryostore has demonstrated steady financial performance, recording unaudited revenues of £0.89 million in 2024, up from £0.81 million in 2023. The company maintains strong profit margins, reporting an EBITDA of £0.52 million in 2024, and operates without debt. Its acquisition is expected to support hVIVO’s financial strategy by generating cost savings, improving margins, and driving cross-selling opportunities within its existing network.

The transaction structure includes an equity component, with three Cryostore managers receiving up to £0.5 million in hVIVO shares. These shares will be issued in two equal tranches on the first and second anniversaries of the acquisition, subject to continued employment. This structure ensures leadership continuity, which will help facilitate a seamless transition.

How Does This Acquisition Fit Into the Broader Biopharma Landscape?

The demand for clinical sample storage and biopharma sample storage is increasing as regulatory bodies impose stricter requirements for long-term data preservation. With clinical trials becoming more complex and the rise of biologics requiring ultra-low temperature storage, companies are prioritising GMP-compliant storage solutions to meet industry standards.

By acquiring Cryostore, hVIVO strengthens its position as a comprehensive CRO, offering biobank service offerings that align with the evolving needs of pharmaceutical and biotechnology firms. The deal positions hVIVO as a key player in securing high-quality, regulatory-compliant clinical sample storage while reducing reliance on external providers.

What Does This Acquisition Mean for hVIVO’s Long-Term Strategy?

hVIVO’s acquisition of Cryostore reflects its long-term commitment to expanding its service portfolio beyond human challenge trials. By integrating biopharma sample storage within its existing framework, the company ensures greater control over research assets, improves cost efficiencies, and broadens its revenue streams.

With hVIVO’s laboratory services, biobank operations, and clinical trial expertise now bolstered by Cryostore’s industry-leading storage capabilities, the company is well-positioned to meet growing demand for comprehensive drug development solutions. The move supports hVIVO’s long-term vision of becoming a dominant force in clinical research by combining trial execution with robust storage and laboratory capabilities.