hVIVO’s new challenge trial facility not only highlights the importance of human challenge study services to customers but also management's ability to use customers to finance growth, says broker Liberum.
“The new facility will boost hVIVO's quarantine bed capacity, support revenue growth and should help the company to realise operational efficiencies going forward.
"Furthermore the initial investment and fit-out costs will largely be funded by hVIVO’s customers and the cost per bed for hVIVO is not expected to increase."
For the time being our forecasts and valuation are unchanged, but overall, this further strengthens our investment thesis and we remain buyers with a target price of 26.3p.