Open Orphan plc has agreed terms with hVIVO plc for a reverse takeover. UK based hVIVO is a services provider in viral challenge studies and laboratory service.

Established in 2017 and led by Cathal Friel, Open Orphan is building a European rare/orphan disease focused pharma services company.

Under the terms of the merger, hVIVO shareholders will be entitled to receive 2.47 New Open Orphan shares for every 1 hVIVO share.

The deal values hVIVO at c.£13m, a premium of 34% to the hVIVO closing price on December 6. This would give the combined company a market capitalisation of £28.5m.

In conjunction with the merger, Open Orphan intends to raise up to £10m. The placing is being underwritten up to £2.5m by Raglan Capital, a company controlled by Cathal Friel.

In Association with

Open Orphan acquired AIM-listed Venn Life Sciences in June 2019.

Cathal Friel (pictured) commented: “The merger of Open Orphan and hVIVO is a key milestone in the execution of our strategy to become a larger-scale specialist pharma services business.

“The merger allows the combined business to maximise shareholder value through delivering cost and revenue synergies across the businesses.”