Broker Cavendish repeated its 42p price target for stock in hVIVO PLC (AIM:HVO) following a capital markets day (CMD) held at hVIVO's new state-of-the-art quarantine facility in Canary Wharf.
During the CMD, the management of the contract research firm highlighted the significant advantages of the new operation over the old ones, including enhanced operational efficiencies and improved volunteer and staff experiences.
The ability to generate operational efficiencies from the new bespoke space is expected to support margin expansion, a key factor in the positive outlook, Cavendish said.
A focal point of the presentation was the relevance and acceptance of human challenge trials (HCTs) by global biopharma companies and regulators. HCTs are crucial to the clinical trial process, and hVIVO’s new facility is well-positioned to support this growing demand.
The company is also diversifying its revenue streams, leveraging services beyond HCTs, such as clinical trial design, patient recruitment, and the FluCamp platform, which has a database capable of screening 30,000 volunteers annually.
Additionally, hVIVO recently secured a major contract to operate a 1,000-volunteer site for a phase IIb influenza drug study, further underscoring its expanding influence and capability in the industry.
Financial projections show promising growth, with revenue expected to rise from £36.9 million in 2021 to £67.4 million by 2025. The company remains on track to meet its £100 million 2028 revenue target, Cavendish said.
In early afternoon trading the stock was up 0.75p at 30p.