Shares in hVIVO PLC (AIM:HVO), the contract research group, rose 2% after it said it had won a contract with an unnamed client to carry out a phase IIb field study assessing an influenza drug candidate.
This evaluation, conducted in collaboration with an unnamed US company, will begin later this year. hVIVO will enrol up to 1,000 healthy volunteers through its recruitment platform, FluCamp.
"The company’s expertise in the rapid and efficient recruitment of patients using its FluCamp services, a database which contains 300,000 potential volunteers and has the ability to screen an additional 1,500 per month, was a key determinant in winning the contract," noted broker Cavendish.
American bank Stifel believes the contract, the terms of which weren't disclosed, is potentially a significant one for the business - though most of the financial impact will be felt next year.
Panmure Liberum: "Today’s contract win is an important win for hVIVO as it opens up a new revenue stream for the company, reducing its dependence on human challenge trials, leveraging the company’s patient recruitment abilities."
A rash of research notes greeted the news. Peel Hunt reiterated its 'buy' advice and 60p target for the stock, while Cavendish thinks the stock is worth 40p. PL is more conservative with a 34.5p valuation.
All three are well ahead of the current price of 27.5p, up 0.55p.