hVIVO PLC (AIM:HVO) contract to run a Phase III trial a human challenge model in whooping cough underlines biotech's confidence in the company's capabilities, said broker Peel Hunt.
It is the first trial to use this methodology, added the broker, and could lead to the approval of developer ILiAD’s BPZE1 vaccine.
Although there are already approved vaccines for whooping cough, and global vaccination coverage is 84%, there is still a need for new vaccines, adds the broker.
Current vaccines have previously failed at containing epidemics of the highly contagious whooping cough.
hVIVO’s human challenge trials are well placed to conduct a Phase III trial as recruitment to traditional clinical trials may take a significant amount of time due to the unpredictability of whooping cough outbreaks.
Its human challenge trials, as well as its extensive recruitment platform FluCamp, should help expedite recruitment and generate the clinical data required for marketing authorisation faster.
This Phase III trial is expected to be hVIVO’s largest human challenge trial to date and its selection by ILiAD to conduct this world-first trial confirms the confidence of BioPharma in its challenge trial capabilities, added Peel Hunt.
hVIVO currently trades on a 2025E EV/EBITDA multiple of 6.9 times, which the broker added is cheap for a world-leading specialist CRO.
Buy with a 36p target is the investment view.